FAR 52.222-12—Contract Termination-Debarment.
Plain-English Summary
FAR 52.222-12, Contract Termination-Debarment, is a labor-standards enforcement clause used in certain construction contracts. It tells contractors that violating specified Davis-Bacon and related labor clauses can have serious consequences, including termination of the contract and debarment of the contractor and subcontractor under 29 CFR 5.12. The clause specifically ties enforcement to breaches of the clauses for Construction Wage Rate Requirements, Contract Work Hours and Safety Standards-Overtime Compensation, Apprentices and Trainees, Payrolls and Basic Records, Compliance with Copeland Act Requirements, Subcontracts (Labor Standards), Compliance with Construction Wage Rate Requirements and Related Regulations, and Certification of Eligibility. In practice, this clause serves as a warning and enforcement mechanism: it makes clear that labor compliance is not just a contract administration issue, but a potential basis for exclusion from future federal work. It matters because it reinforces the government’s ability to protect prevailing wage workers, ensure accurate payroll and recordkeeping, and deter subcontractor and prime contractor misconduct on covered construction projects.
Key Rules
Breach Can Trigger Termination
If the contractor breaches any of the listed labor standards clauses, the Government may terminate the contract. The clause does not create a separate termination procedure, but it puts contractors on notice that labor violations can support contract termination remedies.
Debarment Is a Possible Consequence
A breach may also lead to debarment of the contractor and subcontractor under 29 CFR 5.12. Debarment is a serious administrative sanction that can bar a firm from federal contracting for a period of time, so the clause links labor compliance directly to responsibility and eligibility.
Applies to Specific Labor Clauses
The clause is limited to breaches of the enumerated labor standards provisions, including wage rates, overtime, apprentices and trainees, payrolls and basic records, Copeland Act compliance, subcontract labor standards, related regulations, and certification of eligibility. It is not a general catch-all for every contract violation.
Covers Contractors and Subcontractors
The debarment consequence may apply to both the prime contractor and subcontractors. This means a subcontractor’s labor violations can have consequences beyond the subcontract itself and can affect the firm’s federal contracting eligibility.
Enforcement Tied to 29 CFR 5.12
The clause incorporates the Department of Labor’s debarment framework in 29 CFR 5.12. That regulation governs the procedures and standards for debarment under the Davis-Bacon and related Acts, so the clause works together with labor law enforcement rather than standing alone.
Responsibilities
Contracting Officer
Include the clause when prescribed and use it as part of contract administration for covered construction work. The contracting officer must coordinate with labor compliance officials and the Department of Labor when potential breaches of the listed clauses arise.
Contractor
Comply with all incorporated labor standards clauses, including wage, overtime, payroll, recordkeeping, apprenticeship, and certification requirements. The contractor must also monitor subcontractors because their violations can expose the prime contractor to termination and debarment risk.
Subcontractor
Follow the applicable labor standards requirements flowing down from the prime contract, especially wage, payroll, recordkeeping, and eligibility rules. A subcontractor’s breach can support debarment and can jeopardize both its own work and the prime contract.
Agency/Labor Compliance Officials
Investigate suspected violations, determine whether the facts support enforcement action, and apply the debarment procedures in 29 CFR 5.12 where appropriate. They also help ensure the clause is used consistently with Davis-Bacon enforcement policy.
Practical Implications
This clause is a strong compliance warning: payroll errors, underpayment, improper apprentice use, or missing records can escalate into termination or debarment, not just back wage liability.
Prime contractors should actively police subcontractor compliance, because subcontractor misconduct can create serious exposure for the prime and may affect both parties’ eligibility for future federal work.
Recordkeeping matters as much as wage payment. Incomplete payrolls, inaccurate classifications, or missing basic records can be treated as breaches of the listed clauses.
Contractors should treat certification of eligibility seriously; false or unsupported certifications can become part of a broader labor enforcement case.
For contracting officers, the clause is a reminder to refer suspected labor violations promptly and not to treat Davis-Bacon compliance as a purely administrative issue.
Official Regulatory Text
As prescribed in 22.407 (a) , insert the following clause: Contract Termination-Debarment (May 2014) A breach of the contract clauses entitled Construction Wage Rate Requirements, Contract Work Hours and Safety Standards-Overtime Compensation, Apprentices and Trainees, Payrolls and Basic Records, Compliance with Copeland Act Requirements, Subcontracts (Labor Standards), Compliance with Construction Wage Rate Requirements and Related Regulations, or Certification of Eligibility may be grounds for termination of the contract, and for debarment as a Contractor and subcontractor as provided in 29 CFR 5.12 . (End of clause)