Overview
FAR 22.402 defines the scope and conditions under which the Construction Wage Rate Requirements statute (formerly the Davis-Bacon Act) applies to federal contracts, focusing primarily on work performed at a specific "site of the work" by laborers and mechanics. It establishes criteria for applying construction labor standards to both dedicated construction contracts and nonconstruction contracts that include significant construction components.
Key Rules
- Site of Work Requirement: Labor standards apply only to construction work performed at a specific, foreseeable site where wage rates can be determined for the locality.
- Inclusions: Applicability extends to:
- Dismantling, demolition, or removal of improvements if linked to current or future construction.
- On-site manufacture or fabrication of materials.
- Painting of public buildings or public works, including alterations and repairs.
- Exclusions: Labor standards generally do not apply to:
- Off-site manufacturing or delivery by commercial suppliers.
- Employees at permanent home offices or off-site fabrication shops (unless they perform actual work at the construction site).
- Work so integrated into Research and Development (R&D) that it cannot be separated.
- Nonconstruction Contracts: For supply, service, or R&D contracts, construction labor standards apply only if the construction work is "substantial," occurs on a public building/work, and is physically or functionally segregable from the rest of the contract.
- Incidental Work: Simple installation or minor alterations incidental to supply or service contracts are exempt; however, complex installations (e.g., heavy generators or plant modifications) trigger applicability.
Practical Implications
- Compliance Tracking: Contractors must carefully track the "actual time spent" at the site of work for employees who usually work at home offices or off-site shops to ensure they are paid prevailing wages for those specific hours.
- Contract Hybridization: Contracting Officers and contractors must evaluate service or supply contracts for "substantial and segregable" construction tasks; if found, the contract must include dual wage determinations (e.g., Service Contract Labor Standards for the service portion and Construction Wage Rate Requirements for the construction portion).