FAR 22.407—Solicitation provision and contract clauses.
Plain-English Summary
FAR 22.407 tells contracting officers exactly which Davis-Bacon/Construction Wage Rate Requirements clauses and related provisions must be included in construction solicitations and contracts, and when to use the special price-adjustment clauses for contracts with options. It covers standard labor standards clauses for construction over $2,000 within the United States, the special clause for cost-reimbursement construction, the treatment of mixed contracts that include only some construction work, and the three alternative price-adjustment clauses used when a fixed-price construction contract with options is subject to wage-rate changes. It also requires the secondary-site-of-the-work provision in applicable solicitations. In practice, this section is the checklist for making sure construction acquisitions carry the correct labor standards protections, wage payment rules, recordkeeping requirements, subcontract flowdowns, debarment consequences, dispute procedures, and wage-rate approval mechanics. It matters because missing or misapplying these clauses can create labor law noncompliance, pricing errors, option exercise problems, and enforcement risk for both the Government and the contractor.
Key Rules
Standard construction clauses
For construction contracts and solicitations over $2,000 within the United States, the contracting officer must insert the full set of labor standards clauses listed in paragraph (a), including wage rates, withholding, payroll records, apprentices and trainees, Copeland Act compliance, subcontract labor standards, termination/debarment, compliance with wage-rate regulations, labor standards disputes, and certification of eligibility.
Cost-reimbursement wage approval
For cost-reimbursement construction over $2,000 performed in the United States, the clause at 52.222-16, Approval of Wage Rates, must be included, except when the contract is with a State or political subdivision. This clause addresses how wage rates are approved for that contracting method.
Mixed contracts with construction work
If a contract is not primarily for construction but includes some construction work, the construction labor standards clauses still apply to that work when FAR 22.402(b) says the subpart applies. The solicitation and contract must identify the specific construction item or items to which the clauses apply.
Price-adjustment clause selection
For fixed-price construction contracts with options subject to the Construction Wage Rate Requirements statute, the contracting officer must choose the correct price-adjustment clause based on the pricing method selected under 22.404-12(c): 52.222-30 for none or separately specified pricing, 52.222-31 for percentage method, or 52.222-32 for actual method.
Option-bearing cost-reimbursement contracts
If a cost-reimbursable construction contract subject to the statute will include options to extend the term, the contracting officer must insert 52.222-30. This ensures the contract has the proper mechanism for handling wage-rate changes during option periods.
Secondary site provision
The provision at 52.222-5, Construction Wage Rate Requirements-Secondary Site of the Work, must be inserted in solicitations over $2,000 for construction within the United States. This alerts offerors to the rules that may apply to work performed at secondary sites.
Responsibilities
Contracting Officer
Determine whether the acquisition is construction, whether it is within the United States, whether the dollar threshold is met, and whether the contract is fixed-price or cost-reimbursement. Insert the required clauses and provision, select the correct price-adjustment clause for option-bearing fixed-price contracts, identify any construction items in mixed contracts, and ensure the solicitation and contract reflect the applicable labor standards requirements.
Contractor
Comply with all inserted labor standards clauses, including paying required wage rates, maintaining payroll and basic records, following Copeland Act requirements, managing apprentices and trainees properly, flowing down subcontract labor standards where required, and understanding the dispute and debarment consequences tied to noncompliance.
Subcontractors
Follow the applicable construction labor standards clauses that flow down from the prime contract, including wage, payroll, recordkeeping, and compliance requirements for the covered construction work.
Agency
Support acquisition planning and contract administration so the correct construction labor standards clauses are used, and ensure labor standards requirements are applied consistently to covered construction acquisitions.
Practical Implications
This section is a clause-selection checklist: if the contract is covered construction, the wrong clause set can create a compliance defect even if the work itself is otherwise properly priced and performed.
Mixed-purpose contracts are a common trap. If only part of the contract is construction, the contracting officer must still apply the labor standards clauses to the covered construction portion and clearly identify that portion in the contract.
Option-bearing construction contracts require special attention to price adjustment. The contracting officer must match the clause to the pricing method chosen under 22.404-12; using the wrong clause can undermine how wage-rate increases are handled during option periods.
Cost-reimbursement construction has a different clause requirement than fixed-price construction. Missing 52.222-16, or using the wrong price-adjustment clause for an option-bearing cost-reimbursement contract, can create administration and payment problems.
The secondary-site provision is easy to overlook because it is a solicitation provision rather than a contract clause, but it still must be included in covered solicitations and can affect how offerors price and plan the work.
Official Regulatory Text
(a) Insert the following clauses in solicitations and contracts in excess of $2,000 for construction within the United States: (1) 52.222-6 , Construction Wage Rate Requirements. (2) 52.222-7 , Withholding of Funds. (3) 52.222-8 , Payrolls and Basic Records. (4) 52.222-9 , Apprentices and Trainees. (5) 52.222-10 , Compliance with Copeland Act Requirements. (6) 52.222-11 , Subcontracts (Labor Standards). (7) 52.222-12 , Contract Termination-Debarment. (8) 52.222-13 , Compliance with Construction Wage Rate Requirements and Related Regulations. (9) 52.222-14 , Disputes Concerning Labor Standards. (10) 52.222-15 , Certification of Eligibility. (b) Insert the clause at 52.222-16 , Approval of Wage Rates, in solicitations and contracts in excess of $2,000 for cost-reimbursement construction to be performed within the United States, except for contracts with a State or political subdivision thereof. (c) A contract that is not primarily for construction may contain a requirement for some construction work to be performed in the United States. If under 22.402 (b) the requirements of this subpart apply to the construction work, insert in such solicitations and contracts the applicable construction labor standards clauses required in this section and identify the item or items of construction work to which the clauses apply. (d) [Reserved] (e) Insert the clause at 52.222-30 , Construction Wage Rate Requirements-Price Adjustment (None or Separately Specified Pricing Method), in solicitations and contracts if the contract is expected to be- (1) A fixed-price contract subject to the Construction Wage Rate Requirements statute that will contain option provisions by which the contracting officer may extend the term of the contract, and the contracting officer determines the most appropriate contract price adjustment method is the method at 22.404-12 (c)(1) or (2); or (2) A cost-reimbursable type contract subject to the Construction Wage Rate Requirements statute that will contain option provisions by which the contracting officer may extend the term of the contract. (f) Insert the clause at 52.222-31 , Construction Wage Rate Requirements-Price Adjustment (Percentage Method), in solicitations and contracts if the contract is expected to be a fixed-price contract subject to the Construction Wage Rate Requirements statute that will contain option provisions by which the contracting officer may extend the term of the contract, and the contracting officer determines the most appropriate contract price adjustment method is the method at 22.404-12 (c)(3). (g) Insert the clause at 52.222-32 , Construction Wage Rate Requirements-Price Adjustment (Actual Method), in solicitations and contracts if the contract is expected to be a fixed-price contract subject to the Construction Wage Rate Requirements statute that will contain option provisions by which the contracting officer may extend the term of the contract, and the contracting officer determines the most appropriate method to establish contract price is the method at 22.404-12 (c)(4). (h) Insert the provision at 52.222-5 , Construction Wage Rate Requirements-Secondary Site of the Work, in solicitations in excess of $2,000 for construction within the United States.