738 

14 CFR Ch. I (1–1–19 Edition) 

Pt. 152, App. A 

[insert sponsor’s name] to any proposed as-
signment of any interest in or part of this 
contract. 

(3) 

Convict labor. 

No convict labor may be 

employed under this contract. 

(4) 

Veterans preference. 

In the employment 

of labor (except in executive, administrative, 
and supervisory positions), preference shall 
be given to qualified individuals who have 
served in the military service of the United 
States (as defined in section 101(1) of the Sol-
diers’ and Sailors’ Civil Relief Act of 1940 (50 
U.S.C. App. 501) and have been honorably dis-
charged from the service, except that pref-
erence may be given only where that labor is 
available locally and is qualified to perform 
the work to which the employment relates. 

(5) 

Withholding: sponsor from contractor. 

Whether or not payments or advances to the 
[insert sponsor’s name] are withheld or sus-
pended by the FAA, the [insert sponsor’s 
name] may withhold or cause to be withheld 
from the contractor so much of the accrued 
payments or advances as may be considered 
necessary to pay laborers and mechanics em-
ployed by the contractor or any subcon-
tractor on the work the full amount of wages 
required by this contract. 

(6) 

Nonpayment of wages. 

If the contractor 

or subcontractor fails to pay any laborer or 
mechanic employed or working on the site of 
the work any of the wages required by this 
contract the [insert sponsor’s name] may, 
after written notice to the contractor, take 
such action as may be necessary to cause the 
suspension of any further payment or ad-
vance of funds until the violations cease. 

(7) 

FAA inspection and review. 

The con-

tractor shall allow any authorized represent-
ative of the FAA to inspect and review any 
work or materials used in the performance of 
this contract. 

(8) 

Subcontracts. 

The contractor shall insert 

in each of his subcontracts the provisions 
contained in paragraphs [insert designation 
of 6 paragraphs of contract corresponding to 
paragraphs (1), (3), (4), (5), (6), and (7) of this 
paragraph], and also a clause requiring the 
subcontractors to include these provisions in 
any lower tier subcontracts which they may 
enter into, together with a clause requiring 
this insertion in any further subcontracts 
that may in turn be made. 

(9) 

Contract termination. 

A breach of para-

graphs [insert designation of 3 paragraphs 
corresponding to paragraphs (6), (7), and (8) 
of this paragraph] may be grounds for termi-
nation of the contract. 

II. Adjustment in Liquidated Damages 

A contractor or subcontractor who has be-

come liable for liquidated damages under the 
provision set out in paragraph I.G of this ap-
pendix and who claims that the amount ad-
ministratively determined as liquidated 
damages under section 104(a) of the Contract 
Work Hours and Safety Standards Act is in-

correct or that he violated inadvertently the 
Contract Work Hours and Safety Standards 
Act, notwithstanding the exercise of due 
care, may— 

(1) If the amount determined is more than 

$100, apply to the Administrator for a rec-
ommendation to the Secretary of Labor that 
an appropriate adjustment be made or that 
he be relieved of liability for the liquidated 
damages; or 

(2) If the amount determined is $100 or less, 

apply to the Administrator for an appro-
priate adjustment in liquidated damages or 
for release from liability for the liquidated 
damages. 

III. Corrected Wage Determinations 

The Secretary of Labor corrects any wage 

determination included in any contract 
under this appendix whenever the wage de-
termination contains clerical errors. A cor-
rection may be made at the Administrator’s 
request or on the initiative of the Secretary 
of Labor. 

IV. Applicability of Interpretations of the 

Secretary of Labor 

When applicable by their terms, the regu-

lations of the Secretary of Labor (29 CFR 
5.20–5.32) interpreting the ‘‘fringe benefit 
provisions’’ of the Davis-Bacon Act apply to 
the contract provisions in this appendix. 

V. Records 

A sponsor who is required to include in a 

construction contract the labor provisions 
required by this appendix shall require the 
contractor to comply with those provisions 
and shall cooperate with the FAA in effect-
ing that compliance. For this purpose the 
sponsor shall— 

(1) Keep, and preserve, the record described 

in paragraph IC for a 3-year period beginning 
on the date the contract is completed, each 
affidavit and payroll copy furnished by the 
contractor, and make those affidavits and 
copies available to the FAA, upon request, 
during that period; 

(2) Have each of those affidavits and pay-

rolls examined by its resident engineer (or 
any other of its employees or agents who is 
qualified to make the necessary determina-
tions), as soon as possible after receiving it, 
to the extent necessary to determine wheth-
er the contractor is complying with the 
labor provisions required by this appendix 
and particularly with respect to whether the 
contractor’s employees are correctly classi-
fied; 

(3) Have investigations made during the 

performance of work under the contract, to 
the extent necessary to determine whether 
the contractor is complying with those labor 
provisions, including in the investigations, 
interviews with employees and examinations 
of payroll information at the work site by 

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