FAR 22.406-1—Policy.
Plain-English Summary
FAR 22.406-1 sets out the basic policy for enforcing labor standards on construction contracts. It covers the contracting agency’s duty to run an effective labor standards compliance program, including informing contractors and subcontractors of their obligations before work starts, conducting payroll reviews, on-site inspections, and employee interviews, investigating and resolving complaints promptly, and submitting required reports without delay. It also addresses preconstruction letters and conferences, requiring the contracting officer to explain the labor standards clauses, wage determination requirements, and the responsibilities of the contractor and any subcontractors. In practice, this section is the foundation for day-to-day Davis-Bacon and related labor standards administration on construction contracts: it is meant to prevent violations before they occur, detect problems early, and ensure that corrective action is taken quickly when issues arise.
Key Rules
Agency enforcement duty
Contracting agencies are responsible for the full and impartial enforcement of labor standards in construction contract administration. This means the agency must actively manage compliance, not simply rely on the contractor to self-police.
Effective compliance program
Each agency must maintain an effective labor standards program. The program must include notice to contractors and subcontractors, compliance monitoring, complaint handling, and timely reporting.
Pre-work notice requirement
Before construction begins, contractors and subcontractors must be informed of their labor standards obligations. This notice must occur before performance starts so the parties understand the rules from the outset.
Monitoring and verification
The agency must use payroll reviews, on-site inspections, and employee interviews to determine whether the contractor and subcontractors are complying. If violations or concerns are found, corrective action must be started promptly.
Complaint handling
Complaints related to labor standards must be investigated and resolved promptly. The agency cannot delay action when a worker, subcontractor, or other source raises a compliance issue.
Reporting obligations
All reports required by this subpart must be submitted promptly. Timely reporting is part of the agency’s enforcement responsibility and supports oversight and enforcement actions.
Preconstruction briefing by CO
Before construction begins, the contracting officer must explain the labor standards clauses, wage determination requirements, and the responsibilities of the contractor and any subcontractors. If the contractor may not fully understand the requirements, the CO should issue an explanatory letter and/or hold a conference soon after award.
Responsibilities
Contracting Agency
Maintain an effective labor standards enforcement program for construction contracts, including contractor/subcontractor notice, compliance monitoring, complaint investigation, corrective action, and prompt reporting.
Contracting Officer
Before construction begins, inform the contractor of the labor standards clauses, wage determination requirements, and the responsibilities of the contractor and subcontractors. If needed, provide an explanatory letter and/or hold a post-award conference promptly.
Contractor
Understand and comply with the labor standards clauses and wage determination requirements, and ensure subcontractors are informed of and follow their obligations before work starts.
Subcontractors
Comply with the labor standards clauses and wage determination requirements applicable to their work and follow the responsibilities communicated before performance begins.
Practical Implications
This section makes labor standards administration an active management task, not a paperwork-only exercise. Agencies and contracting officers should expect to brief contractors early and monitor compliance throughout performance.
A common pitfall is assuming the contractor already knows the wage and labor requirements. FAR 22.406-1 expects the CO to confirm understanding and provide written or oral explanation when needed.
Payroll reviews, site visits, and employee interviews are not optional best practices here; they are core compliance tools. Skipping them can allow violations to go undetected and weaken enforcement.
Prompt action matters. If a complaint, payroll discrepancy, or site issue appears, the agency should investigate quickly and document corrective steps rather than waiting until the end of the job.
Contractors should treat preconstruction communication as a compliance checkpoint. They need to flow requirements down to subcontractors early, because the agency expects subcontractor obligations to be addressed before work begins.
Official Regulatory Text
(a) General . Contracting agencies are responsible for ensuring the full and impartial enforcement of labor standards in the administration of construction contracts. Contracting agencies shall maintain an effective program that shall include- (1) Ensuring that contractors and subcontractors are informed, before commencement of work, of their obligations under the labor standards clauses of the contract; (2) Adequate payroll reviews, on-site inspections, and employee interviews to determine compliance by the contractor and subcontractors, and prompt initiation of corrective action when required; (3) Prompt investigation and disposition of complaints; and (4) Prompt submission of all reports required by this subpart. (b) Preconstruction letters and conferences . Before construction begins, the contracting officer shall inform the contractor of the labor standards clauses and wage determination requirements of the contract and of the contractor’s and any subcontractor’s responsibilities under the contract. Unless it is clear that the contractor is fully aware of the requirements, the contracting officer shall issue an explanatory letter and/or arrange a conference with the contractor promptly after award of the contract.