Construction Wage Deteminations

A question comes up for me regarding MilitaryContractSpecialist's ? posted on 1/24/11 regarding the wage determination under the SCA. What about Construction Contracts? Do new Wage Determinations need to be sent to contractor's that are currently working on-site?

See FAR 22.404-1 -- Types of Wage Determinations.

"(a) General wage determinations.

(1) A general wage determination contains prevailing wage rates for the types of construction designated in the determination, and is used in contracts performed within a specified geographical area. General wage determinations contain no expiration date and remain valid until modified, superseded, or canceled by the Department of Labor. Once incorporated in a contract, a general wage determination normally remains effective for the life of the contract, unless the contracting officer exercises an option to extend the term of the contract (see 22.404-12)..."

"...( Project wage determinations. A project wage determination is issued at the specific request of a contracting agency. It is used only when no general wage determination applies, and is effective for 180 calendar days from the date of the determination. However, if a determination expires before contract award, it may be possible to obtain an extension to the 180-day life of the determination (see 22.404-5((2)). Once incorporated in a contract, a project wage determination normally remains effective for the life of the contract, unless the contracting officer exercises an option to extend the term of the contract (see 22.404-12)."

Now read: FAR 22.404-12 – Labor Standards for Contracts Containing Construction Requirements and Option Provisions That Extend the Term of the Contract. I presume that you can find this through WIFCON "Rules and Tools" links.

Hope this answers your initial questions.

FAR 22.404-1 -- Types of Wage Determinations.

"(a) General wage determinations.

(1) A general wage determination contains prevailing wage rates for the types of construction designated in the determination, and is used in contracts performed within a specified geographical area. General wage determinations contain no expiration date and remain valid until modified, superseded, or canceled by the Department of Labor. Once incorporated in a contract, a general wage determination normally remains effective for the life of the contract, unless the contracting officer exercises an option to extend the term of the contract (see 22.404-12)..."

"...( Project wage determinations. A project wage determination is issued at the specific request of a contracting agency. It is used only when no general wage determination applies, and is effective for 180 calendar days from the date of the determination. However, if a determination expires before contract award, it may be possible to obtain an extension to the 180-day life of the determination (see 22.404-5((2)). Once incorporated in a contract, a project wage determination normally remains effective for the life of the contract, unless the contracting officer exercises an option to extend the term of the contract (see 22.404-12)."

See: FAR 22.404-12 ? Labor Standards for Contracts Containing Construction Requirements and Option Provisions That Extend the Term of the Contract. I presume that you can find this through WIFCON "Rules and Tools" links.

Thankyou for the info I will look into your references.

Thankyou for the info I will look into your references.

Shadow, in anticipating further questions:

The D-B labor rates are minimums. A contractor can pay more than the minimum Davis Bacon Wage rates. They often do.

A price adjustment for an option is necessary only if

1. a revised wage decision requires a wage increase over what the contractor would already be paying or

2. if the contractor reduces what it would have otherwise be paying to take advantage of lower D-B rates, if applicable. I have actually seen some D-B rates go down. I have not seen a contractor actually cut wages, though. We see the payrolls.

Hope this helps.