FAR 22.404—Construction Wage Rate Requirements statute wage determinations.
Plain-English Summary
FAR 22.404 explains how Construction Wage Rate Requirements wage determinations work and what they cover in federal construction contracting. It identifies the Department of Labor as the agency responsible for issuing wage determinations, explains that those determinations reflect prevailing wages and fringe benefits, and limits their coverage to laborers and mechanics employed by a contractor on the site of the work. It also clarifies that the covered workers include drivers who transport materials and equipment to or from the site when those activities are part of contract operations. Finally, it explains that wage determinations are issued for different construction categories—building, heavy, highway, and residential—often called rate schedules, and that each determination applies only to the type of construction specifically designated in it. In practice, this section matters because it tells contracting officers and contractors which wage rates must be used, which workers are covered, and when a wage determination cannot be applied outside its proper construction category.
Key Rules
DOL Issues Wage Determinations
The Department of Labor, not the contracting agency, is responsible for issuing wage determinations under the Construction Wage Rate Requirements statute. These determinations establish the required prevailing wages and fringe benefits for covered construction work.
Covers Prevailing Wages and Fringe Benefits
A wage determination includes both wage rates and fringe benefits. Contractors must treat the determination as the controlling source for the minimum compensation required for covered laborers and mechanics.
Applies Only On the Site
Coverage is limited to laborers and mechanics employed upon the site of the work. The rule does not extend the determination to all contractor employees, only to those performing covered work at the jobsite.
Includes Certain Drivers
Drivers who transport materials and equipment used in the course of contract operations to or from the site are included when they are part of the covered work. This means transportation tied directly to the construction contract can fall within the wage determination.
Different Rate Schedules Exist
Wage determinations are issued for different types of construction, including building, heavy, highway, and residential. These categories are often referred to as rate schedules and are not interchangeable.
Use Only the Designated Type
A wage determination applies only to the type of construction designated in that determination. A contractor or contracting officer must match the correct schedule to the project type before using it.
Responsibilities
Department of Labor
Issue wage determinations that reflect prevailing wages and fringe benefits for construction work, and publish them by construction category.
Contracting Officer
Identify and incorporate the correct wage determination for the project’s construction type, and ensure the determination used matches the designated category and scope of work.
Contractor
Pay covered laborers, mechanics, and applicable drivers at least the wages and fringe benefits required by the applicable wage determination for the correct construction category.
Laborers and Mechanics
Perform covered on-site construction work subject to the wage determination applicable to the project and construction type.
Practical Implications
The biggest day-to-day issue is matching the right wage determination to the right project type; using a building schedule on a highway project, for example, can create compliance problems.
Contractors should review whether drivers are covered when they haul materials or equipment to or from the site, because those workers may need to be paid under the wage determination.
Contracting officers need to verify that the wage determination corresponds to the designated construction category and is current for the solicitation or contract action.
A common pitfall is assuming all contractor employees are covered; this section is limited to laborers and mechanics on the site of the work, plus certain drivers tied to contract operations.
Because fringe benefits are part of the determination, contractors must account for total compensation, not just hourly cash wages, when planning labor costs and payroll compliance.
Official Regulatory Text
The Department of Labor is responsible for issuing wage determinations reflecting prevailing wages, including fringe benefits. The wage determinations apply only to those laborers and mechanics employed by a contractor upon the site of the work including drivers who transport to or from the site materials and equipment used in the course of contract operations. Determinations are issued for different types of construction, such as building, heavy, highway, and residential (referred to as rate schedules), and apply only to the types of construction designated in the determination.