July/August 2023 - 115

BRIAN S. WOOD, PARTNER
SMITH CURRIE
LEGALLY SPEAKING
Proposed Rule Would Expand Wage Coverage
The Davis-Bacon Act (DBA), enacted in
1931, requires the payment of locally prevailing wages and
fringe benefits to employees on federal construction
contracts. Subsequent statutes extended DBA prevailing
wage requirements to federally funded state projects.
In the March/April 2022 edition of Deep Foundations, this
column addressed the application of the DBA to employees
performing work on sites near, but not on, the actual federal
project site. As indicated in the article, under current
Department of Labor (DOL) regulations, prevailing wage
requirements apply to employees working not only on " the
physical place or places where the building or work called
for in the contract will remain, " but also " any other site
where a significant portion of the building or work is
constructed, provided that such site is established
specifically for the performance of the contract or project. "
29 CFR 5.2(l)(1). Such secondary sites include " job
headquarters, tool yards, batch plants, borrow pits, etc. " if
they are " dedicated exclusively, or nearly so, to performance
of the covered contract or project " and are " adjacent or
virtually adjacent to the site of the work " itself. 29 CFR
5.2(l)(2). Importantly, 29 CFR 5.2(l)(3) clarifies that sites
established independently of the project are not covered:
Not included in the site of the work are permanent home offices,
branch plant establishments, fabrication plants, tool yards, etc., of a
contractor or subcontractor whose location and continuance in
operation are determined wholly without regard to a particular
federal or federally assisted contract or project. In addition,
fabrication plants, batch plants, borrow pits, job headquarters, tool
yards, etc., of a commercial or material supplier, which are established
by a supplier of materials for the project before opening of bids and not
on the site of the work as stated in paragraph (l)(1) of this section, are
not included in the site of the work. Such permanent, previously
established facilities are not part of the site of the work, even where the
operations for a period of time may be dedicated exclusively, or nearly
so, to the performance of a contract.
DEEP FOUNDATIONS * JULY/AUG 2023 * 115

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July/August 2023

Table of Contents for the Digital Edition of July/August 2023

TOC
July/August 2023 - Intro
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July/August 2023 - TOC
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