FAR 22.407 Labor Standards: Bid-Day Checklist for Subcontractors
When trade subcontractors price federal construction work, the prime contractor's solicitation package often contains a dense stack of labor provisions and contract clauses. Navigating these requirements before submitting your number is critical for managing compliance exposure and payroll administration. Under FAR 22.407, the Federal Acquisition Regulation outlines the exact labor standards clauses that contracting officers must insert into federal construction solicitations and contracts. Estimators can use this bid-day checklist to verify which clauses apply, confirm how contract options handle wage changes, and catch special contract types before the deadline.
Checklist Step 1: Verify the $2,000 Construction Threshold
Before reviewing individual clauses, confirm whether the federal work meets the basic threshold set by FAR 22.407. The standard baseline requirements apply whenever federal solicitations and contracts exceed $2,000 for construction within the United States.
In addition to contract clauses, solicitations in excess of $2,000 for construction within the United States must insert the provision at 52.222-5, Construction Wage Rate Requirements-Secondary Site of the Work. Estimators should check the bid documents to ensure this provision is noted, especially if prefabrication, staging, or secondary job locations are part of the planned work scope.
Checklist Step 2: Audit the 10 Mandatory Core Labor Clauses
For contracts and solicitations exceeding $2,000 for construction within the United States, FAR 22.407(a) prescribes ten core labor standards clauses. Trade subcontractors should cross-reference their prime contractor agreements against this exact list on bid day:
- 52.222-6, Construction Wage Rate Requirements: Sets the foundational wage requirements for laborers and mechanics on the site of the work. You can review our detailed breakdown in the FAR 52.222-6 Construction Wage Rate Requirements: Estimator Guide.
- 52.222-7, Withholding of Funds: Authorizes the withholding of accrued contract payments if wage or labor obligations are not satisfied.
- 52.222-8, Payrolls and Basic Records: Requires contractors and subcontractors to preserve payroll records and submit certified payroll reports.
- 52.222-9, Apprentices and Trainees: Establishes rules regarding the allowable employment and wage ratios for apprentices and trainees on the job.
- 52.222-10, Compliance with Copeland Act Requirements: Directs compliance with federal anti-kickback rules and payroll deductions.
- 52.222-11, Subcontracts (Labor Standards): Requires prime contractors to insert core labor clauses into subcontracts at every tier. Learn how this flows down in our FAR 52.222-11 Labor Standards Flow-Down: Contractor Q&A Guide.
- 52.222-12, Contract Termination-Debarment: Warns that breaches of labor standards clauses can result in contract termination and debarment.
- 52.222-13, Compliance with Construction Wage Rate Requirements and Related Regulations: Mandates compliance with federal wage rate regulations.
- 52.222-14, Disputes Concerning Labor Standards: Governs dispute resolution procedures for labor standards disagreements.
- 52.222-15, Certification of Eligibility: Restricts awards and payments to firms certified as eligible under federal labor standards.
Checklist Step 3: Check for Cost-Reimbursement Terms and Clause 52.222-16
Subcontractors bidding on cost-reimbursement federal projects need to check for an additional labor standards clause. FAR 22.407(b) requires the insertion of clause 52.222-16, Approval of Wage Rates, in solicitations and contracts in excess of $2,000 for cost-reimbursement construction performed within the United States. An exception exists for contracts with a State or political subdivision thereof, where this clause is not required.
Checklist Step 4: Screen Mixed Contracts for Incidental Construction Items
Not every federal contract containing construction work begins as a dedicated construction solicitation. Under FAR 22.407(c), a contract that is not primarily for construction may still include requirements for some construction work to be performed in the United States.
When the requirements of the subpart apply to that construction work under 22.402(b), the contracting officer must insert the applicable construction labor standards clauses required in FAR 22.407 and identify the specific item or items of construction work to which the clauses apply. Subcontractors pricing trade scopes on service or supply contracts should verify that the prime contractor has identified these designated items.
Checklist Step 5: Identify the Price Adjustment Method for Option Years
Federal contracts that span multiple years frequently include option provisions allowing the contracting officer to extend the contract term. When a fixed-price or cost-reimbursable contract is subject to the Construction Wage Rate Requirements statute and includes options to extend the term, estimators must look for one of three price adjustment clauses specified in FAR 22.407(e), (f), and (g):
- Clause 52.222-30 (None or Separately Specified Pricing Method): Used if the contract is expected to be a fixed-price contract with option provisions and the contracting officer selects the adjustment method at 22.404-12(c)(1) or (2), or if it is expected to be a cost-reimbursable contract containing option provisions.
- Clause 52.222-31 (Percentage Method): Inserted if the contract is expected to be a fixed-price contract with option provisions and the contracting officer determines that the adjustment method at 22.404-12(c)(3) is the most appropriate.
- Clause 52.222-32 (Actual Method): Inserted if the contract is expected to be a fixed-price contract with option provisions and the contracting officer determines that the method at 22.404-12(c)(4) is the most appropriate method to establish the contract price.
Checking which price adjustment clause is incorporated into the prime contract tells you exactly how future wage determinations and contract price changes will be handled over the life of the project.
Sources
Acquisition.GOV: FAR 22.407 Solicitation provision and contract clauses
Published October 30, 2026. No affiliate links on this page. Facts come from the sources linked above; check them for updates.