Overview
This section determines whether the Service Contract Labor Standards or the Wage Rate Requirements (Construction) apply to federal contracts involving the dismantling, demolition, or removal of improvements.
Key Rules
- Service Contract Labor Standards (41 U.S.C. chapter 67): Applies when the contract is solely for dismantling, demolition, or removal of improvements and no subsequent construction at that site is planned.
- Wage Rate Requirements (Construction) (40 U.S.C. chapter 31, subchapter IV): Applies if the dismantling or demolition is followed by intended construction, alteration, or repair of a public building or work at that location.
- Future Intent Provision: Even if the subsequent construction work will be performed under a separate, future contract, the initial demolition contract must still follow construction labor standards.
Practical Implications
- Contracting officers must verify the long-term plan for a project site before solicitation to ensure the correct wage determination (SCLS vs. Davis-Bacon) is incorporated into the contract.
- Failure to correctly identify intended future construction can lead to misclassification of labor and significant legal or financial liabilities regarding prevailing wage compliance.