735
Federal Aviation Administration, DOT
Pt. 152, App. A
A
PPENDIX
A
TO
P
ART
152—C
ONTRACT
AND
L
ABOR
P
ROVISIONS
This appendix sets forth contract and labor
provisions applicable to grants under the
Airport and Airway Development Act of 1970.
This appendix does not apply to: (1) Any
contract with the owner of airport hazards,
buildings, pipelines, powerlines, or other
structures or facilities, for installing, ex-
tending, changing, removing, or relocating
that structure or facility, and (2) any writ-
ten agreement or understanding between a
sponsor and another public agency that is
not a sponsor of the project, under which the
public agency undertakes construction work
for or as agent of the sponsor.
I. Contract Provisions Required by the
Regulations of the Secretary of Labor
Each sponsor entering into a construction
contract for an airport development project
shall insert in the contract and any supple-
mental agreement:
(1) The provisions required by the Sec-
retary of Labor, as set forth in paragraphs A
through K;
(2) The provisions set forth in paragraph L,
and
(3) Any other provisions necessary to en-
sure completion of the work in accordance
with the grant agreement.
The provisions in paragraphs A through K
and provision (5) in paragraph L need not be
included in prime contracts of $2,000 or less.
A. Minimum wages.
(1) All mechanics and
laborers employed or working upon the site
of the work will be paid unconditionally and
not less often than once a week, and without
subsequent deduction or rebate on any ac-
count (except such payroll deductions as are
permitted by regulations issued by the Sec-
retary of Labor under the Copeland Act [29
CFR part 3], the full amounts due at time of
payment computed at wage rates not less
than those contained in the wage determina-
tion decision(s) of the Secretary of Labor
which is (are) attached hereto and made a
part hereof, regardless of any contractual re-
lationship which may be alleged to exist be-
tween the contractor and such laborers and
mechanics; and the wage determination deci-
sion(s) shall be posted by the contractor at
the site of the work in a prominent place
where it (they) can be easily seen by the
workers. For the purpose of this paragraph,
contributions made or costs reasonably an-
ticipated under section 1(b)(2) of the Davis-
Bacon Act on behalf of laborers or mechanics
are considered wages paid to such laborers or
mechanics, subject to the provisions of para-
graph (4) below. Also for the purpose of this
paragraph, regular contributions made or
costs incurred for more than a weekly period
under plans, funds, or programs, but cov-
ering the particular weekly period, are
deemed to be constructively made or in-
curred during such weekly period (29 CFR
5.5(a)(1)(i)).
(2) Any class of laborers or mechanics, in-
cluding apprentices and trainees, which is
not listed in the wage determination(s) and
which is to be employed under the contract,
shall be classified or reclassified conform-
ably to the wage determination(s), and a re-
port of the action taken shall be sent by the
[insert sponsor’s name] to the FAA for ap-
proval and transmittal to the Secretary of
Labor. In the event that the interested par-
ties cannot agree on the proper classification
or reclassification of a particular class of la-
borers and mechanics, including apprentices
and trainees, to be used, the question accom-
panied by the recommendation of the FAA
shall be referred to the Secretary of Labor
for final determination (29 CFR 5.5(a)(1)(ii)).
(3) Whenever the minimum wage rate pre-
scribed in the contract for a class of laborers
or mechanics includes a fringe benefit which
is not expressed as an hourly wage rate and
the contractor is obligated to pay a cash
equivalent of such a fringe benefit, an hourly
cash equivalent thereof shall be established.
In the event the interested parties cannot
agree upon a cash equivalent of the fringe
benefit, the question accompanied by the
recommendation of the FAA shall be referred
to the Secretary of Labor for determination
(29 CFR 5.5(a)(1)(iii)).
(4) If the contractor does not make pay-
ments to a trustee or other third person, he
may consider as part of the wages of any la-
borer or mechanic the amount of any costs
reasonably anticipated in providing benefits
under a plan or program of a type expressly
listed in the wage determination decision of
the Secretary of Labor which is a part of this
contract:
Provided, however,
the Secretary of
Labor has found, upon written request of the
contractor, that the applicable standards of
the Davis-Bacon Act have been met. The
Secretary of Labor may require the con-
tractor to set aside in a separate account as-
sets for the meeting of obligations under the
plan or program (29 CFR 5.5(a)(1)(iv)).
B. Withholding: FAA from sponsor.
Pursuant
to the terms of the grant agreement between
the United States and [insert sponsor’s
name], relating to Airport Development Aid
Project No.
l
, and part 152 of the Federal
Aviation Regulations (14 CFR part 152), the
FAA may withhold or cause to be withheld
from the [insert sponsor’s name] so much of
the accrued payments or advances as may be
considered necessary to pay laborers and me-
chanics, including apprentices and trainees,
employed by the contractor or any subcon-
tractor on the work the full amount of wages
required by this contract. In the event of
failure to pay any laborer or mechanics, in-
cluding any apprentice or trainee, employed
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