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FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

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

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This clause applies to construction contracts with options to extend the term. It requires the Contracting Officer to adjust the contract price at each option exercise to cover increased wages and fringe benefits required by the Construction Wage Rate Requirements statute. The adjustment is the only price change for such wage increases.

Applies to: Construction contracts with options to extend the term

Key terms: Construction Wage Rate Requirements statute · wage determination · option to extend the term · Contracting Officer · price adjustment

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As prescribed in 22.407(f), insert the following clause:

Construction Wage Rate Requirements—Price Adjustment (Percentage Method) (AUG 2018)

(a) The wage determination issued under the Construction Wage Rate Requirements statute by the Administrator, Wage and Hour Division, 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.

(End of clause)

Sections it refers to

  • 22.407 Solicitation provision and contract clauses.

Sections that refer to it

  • 22.407 Solicitation provision and contract clauses.

← 52.222-30 Construction Wage Rate Requirements—Price Adjustment (None or Separately Specified Method). · 52.222-32 Construction Wage Rate Requirements—Price Adjustment (Actual Method). →

Rule changes for FAR Part 52

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

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