FAR 52.222-31 - Construction Wage Rate Requirements - Price Adjustment (Percentage Method)

***

Prescribed in 22.407(f)
Effective Date:	1 May 2014
Clause or Provision:	Clause
Provision or Clause Number:	52.222-31 - Construction Wage Rate Requirements - Price Adjustment (Percentage Method)
Principle Type And/Or Purpose of Contract:
Required:
Applicable:	Cost Reimbursement, Construction; Fixed Price, Construction
Optional:	Utility Services; Simplified Acquisition Procedures (Excludes Micro-Purchase); Facilities; Indefinite Delivery; Dismantling, Demolition or Removal of Improvements; Leasing of Motor Vehicles; Time & Material/Labor Hour; Fixed Price, Service; Cost Reimbursement, Supply; Cost Reimbursement, Service
Subject:	Employment/Labor/Wages
ProcurementType:
Contract Threshold:
Prescription Overview:	Prescription (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).
Clause Overview:	Clause (a) The wage determination issued under the Construction Wage Rate Requirements statute by the Administrator, Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor, that is effective for an option to extend the term of the contract, will apply to that option period. (b) The Contracting Officer will adjust the portion of the contract price or contract unit price(s) containing the labor costs subject to the Construction Wage Rate Requirements statute to provide for an increase in wages and fringe benefits at the exercise of each option to extend the term of the contract in accordance with the following procedures: (1) The Contracting Officer has determined that the portion of the contract price or contract unit price(s) containing labor costs subject to the Construction Wage Rate Requirements statute is __________ [Contracting Officer insert percentage rate] percent. (2) The Contracting Officer will increase the portion of the contract price or contract unit price(s) containing the labor costs subject to the Construction Wage Rate Requirements statute by the percentage rate published in _____________ [Contracting Officer insert publication]. (c) The Contracting Officer will make the price adjustment at the exercise of each option to extend the term of the contract. This adjustment is the only adjustment that the Contracting Officer will make to cover any increases in wages and benefits as a result of— (1) Incorporation of the Department of Labor’s wage determination applicable at the exercise of the option to extend the term of the contract; (2) Incorporation of a wage determination otherwise applied to the contract by operation of law; or (3) An increase in wages and benefits resulting from any other requirement applicable to workers subject to the Construction Wage Rate Requirements statute.
Important Notes/Requirements:	Only applies to Construction Contracts
Subcontract Threshold:
Incorporated by Reference:	No
Uniform Contract Format:
Editor:	Marshall

---

Personal notes.