DFARS 252.236-7003 Payment for Mobilization and Preparatory Work

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Prescribed in 236.570(b)(2)
Effective Date:	1 January 1997
Clause or Provision:	Clause
Provision or Clause Number:	S 252.236-7003 Payment for Mobilization and Preparatory Work
Principle Type And/Or Purpose of Contract:
Required:
Applicable:	Fixed Price, Construction
Optional:
Subject:
ProcurementType:
Contract Threshold:
Prescription Overview:	Prescription (b) Use the following provisions and clauses in fixed-price construction contracts and solicitations as applicable— (2) When the head of the contracting activity has approved use of a separate bid item for mobilization and preparatory work, use either— (i) 252.236-7003, Payment for Mobilization and Preparatory Work. Use this clause for major construction contracts that require— (A) Major or special items of plant and equipment; or (B) Large stockpiles of material which are in excess of the type, kind, and quantity which would be normal for a contractor qualified to undertake the work; or (ii) 252.236-7004, Payment for Mobilization and Demobilization. Use this clause for contracts involving major mobilization expense, or plant equipment and material (other than the situations covered in paragraph (b)(2)(i) of this section) made necessary by the location or nature of the work. (A) Generally, allocate 60 percent of the lump sum price in paragraph (a) of the clause to the cost of mobilization. (B) Vary this percentage to reflect the circumstances of the particular contract, but in no event should mobilization exceed 80 percent of the payment item.
Clause Overview:	Clause PAYMENT FOR MOBILIZATION AND PREPARATORY WORK (JAN 1997) (a) The Government will make payment to the Contractor under the procedures in this clause for mobilization and preparatory work under item no. ____________________. (b) Payments will be made for actual payments by the Contractor on work preparatory to commencing actual work on the construction items for which payment is provided under the terms of this contract, as follows— (1) For construction plant and equipment exceeding $25,000 in value per unit (as appraised by the Contracting Officer at the work site) acquired for the execution of the work; (2) Transportation of all plant and equipment to the site; (3) Material purchased for the prosecution of the contract, but not to be incorporated in the work; (4) Construction of access roads or railroads, camps, trailer courts, mess halls, dormitories or living quarters, field headquarters facilities, and construction yards; (5) Personal services; and (6) Hire of plant. (c) Requests for payment must include— (1) An account of the Contractor's actual expenditures; (2) Supporting documentation, including receipted bills or copies of payrolls and freight bills; and (3) The Contractor's documentation— (i) Showing that it has acquired the construction plant, equipment, and material free from all encumbrances; (ii) Agreeing that the construction plant, equipment, and material will not be removed from the site without the written permission of the Contracting Officer; and (iii) Agreeing that structures and facilities prepared or erected for the prosecution of the contract work will be maintained and not dismantled prior to the completion and acceptance of the entire work, without the written permission of the Contracting Officer. (d) Upon receiving a request for payment, the Government will make payment, less any prescribed retained percentage, if— (1) The Contracting Officer finds the— (i) Construction plant, material, equipment, and the mobilization and preparatory work performed are suitable and necessary to the efficient prosecution of the contract; and (ii) Preparatory work has been done with proper economy and efficiency. (2) Payments for construction plant, equipment, material, and structures and facilities prepared or erected for prosecution of the contract work do not exceed— (i) The Contractor's cost for the work performed less the estimated value upon completion of the contract; and (ii) 100 percent of the cost to the contractor of any items having no appreciable salvage value; and (iii) 75 percent of the cost to the contractor of items which do have an appreciable salvage value. (e) (1) Payments will continue to be made for item no. _____________, and all payments will be deducted from the contract price for this item, until the total deductions reduce this item to zero, after which no further payments will be made under this item. (2) If the total of payments so made does not reduce this item to zero, the balance will be paid to the Contractor in the final payment under the contract. (3) The retained percentage will be paid in accordance with the Payments to Contractor clause of this contract. (f) The Contracting Officer shall determine the value and suitability of the construction plant, equipment, materials, structures and facilities. The Contracting Officer's determinations are not subject to appeal.
Important Notes/Requirements:
Subcontract Threshold:
Incorporated by Reference:	Yes
Uniform Contract Format:
Editor:	Marshall

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Personal notes.