Under some federal government contracts, the contractor is required to pay its workers a wage dictated by a wage determination issued by DOL. But what if, during contract performance, DOL raises the applicable wages? Under the FAR, contractors can recover their increased costs.
Naturally, however, contractors have to prove them.
For federal construction projects in the United States exceeding $2,000, the Davis-Bacon Act requires contractors to pay their “laborers and mechanics” the “prevailing wage.” Typically, a federal construction contract will incorporate a wage determination which outlines the prevailing wages for the workers expected for the project. But what if you discover that you need another type of worker not listed on the wage determination?
Here are five things you should know about adding wage rates to an existing DBA wage determination.
The government can terminate a contract when the Department of Labor has made a preliminary finding of non-compliance with the Service Contract Act, even if the contractor has not exhausted its remedies fighting or appealing the finding.
The 3-0 (unanimous) decision by the Armed Services Board of Contract Appeals in Puget Sound Environmental Corp., ASBCA No. 58828 (July 12, 2016) is troubling because it could result in other contractors losing their contracts based on preliminary DOL findings–perhaps even if those preliminary findings are later overturned.