52.222-32 Construction Wage Rate

Requirements-Price Adjustment (Actual

Method).

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

Construction Wage Rate Requirements-Price Adjustment (Actual 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)

(1) The Contractor states that if the prices in this contract contain an allowance for wage or benefit

increases, such allowance will not be included in any request for contract price adjustment

submitted under this clause.

(2) The Contractor shall provide with each request for contract price adjustment under this clause a

statement that the prices in the contract do not include any allowance for any increased cost for

which adjustment is being requested.

(c) The Contracting Officer will adjust the contract price or contract unit price labor rates to reflect

the Contractor’s actual increase or decrease in wages and fringe benefits to the extent that the

increase is made to comply with, or the decrease is voluntarily made by the Contractor as a result

of—

(1) Incorporation of the Department of Labor’s Construction Wage Rate Requirements wage

determination applicable at the exercise of an option to extend the term of the contract; or

(2) Incorporation of a Construction Wage Rate Requirements wage determination otherwise applied

to the contract by operation of law.

(d) Any adjustment will be limited to increases or decreases in wages and fringe benefits as

described in paragraph (c) of this clause, and the accompanying increases or decreases in social

security and unemployment taxes and workers’ compensation insurance, but will not otherwise

include any amount for general and administrative costs, overhead, or profit.

(e) The Contractor shall notify the Contracting Officer of any increase claimed under this clause

within 30 days after receiving a revised wage determination unless this notification period is

extended in writing by the Contracting Officer. The Contractor shall notify the Contracting Officer

promptly of any decrease under this clause, but nothing in this clause precludes the Government

from asserting a claim within the period permitted by law. The notice shall contain a statement of

the amount claimed and any relevant supporting data, including payroll records that the Contracting

Officer may reasonably require. Upon agreement of the parties, the Contracting Officer will modify

the contract price or contract unit price in writing. The Contractor shall continue performance

pending agreement on or determination of any such adjustment and its effective date.
(f) Contract price adjustment computations shall be computed as follows:

(1) Computation for contract unit price per single craft hour for schedule of indefinite-quantity work.

For each labor classification, the difference between the actual wage and benefit rates (combined)

paid and the wage and benefit rates (combined) required by the new wage determination shall be

added to the original contract unit price if the difference results in a combined increase. If the

difference computed results in a combined decrease, the contract unit price shall be decreased by

that amount if the Contractor provides notification as provided in paragraph (e) of this clause.

(2) Computation for contract unit price containing multiple craft hours for schedule of indefinitequantity work. For each labor classification, the difference between the actual wage and benefit

rates (combined) paid and the wage and benefit rates (combined) required by the new wage

determination shall be multiplied by the actual number of hours expended for each craft involved in

accomplishing the unit-priced work item. The product of this computation will then be divided by the

actual number of units ordered in the preceding contract period. The total of these computations for

each craft will be added to the current contract unit price to obtain the new contract unit price. The

extended amount for the line item will be obtained by multiplying the new unit price by the

estimated quantity. If actual hours are not available from the preceding contract period for

computation of the adjustment for a specific contract unit of work, the Contractor, in agreement

with the Contracting Officer, shall estimate the total hours per craft per contract unit of work.

Example: Asphalt Paving-Current Price $3.38 per Square Yard

DBA

Craft

New

WD

Hourly

rate

paid

Diff. Actual

Hrs

Actual

units

(sq.yard)

Increase/sqyard

Equip.

Opr. $18.50 – $18.00 = $.50 x

600

hrs./

3,000 sq.

yrd. = $.10

Truck

Driver $19.00 – $18.25 = $.75 x

525

hrs./

3,000 sq.

yrd. = $.13

Laborer $11.50 – $11.25 = $.25 x

750

hrs./

3,000 sq.

yrd. = $.06

Total increase per square yard = $.29*

* Note: Adjustment for labor rate increases or decreases may be accompanied by social security and

unemployment taxes and workers’ compensation insurance.

Current unit price

(per square yard) $3.38

Add DBA price adj. +.29

New unit price

(per square yard) = $3.67

(End of clause)
Parent topic: 52.222 [Reserved]