FAR 52.232-7 - Payments under Time-and-Materials and Labor-Hour Contracts
Prescribed in 32.111(a)(7) | ||
| Effective Date: | 1 August 2012 | |
| Clause or Provision: | Clause | |
| Provision or Clause Number: | 52.232-7 - Payments under Time-and-Materials and Labor-Hour Contracts | |
| Principle Type And/Or Purpose of Contract: | ||
| Required: | ||
| Applicable: | Time and Materials/Labor Hour; Time & Material/Labor Hour | |
| Optional: | Utility Services; Simplified Acquisition Procedures (Excludes Micro-Purchase); Facilities; Indefinite Delivery; Dismantling, Demolition or Removal of Improvements; Leasing of Motor Vehicles; Fixed Price, Construction; Cost Reimbursement, Construction; Fixed Price, Service; Cost Reimbursement, Supply; Cost Reimbursement, Service | |
| Subject: | Invoices and Payments | |
| ProcurementType: | ||
| Contract Threshold: | ||
| Prescription Overview: |
Prescription32.111 Contract clauses for non-commercial purchases(a) The contracting officer shall insert the following clauses, appropriately modified with respect to payment due dates, in accordance with agency regulations— (7) The clause at 52.232-7, Payments under Time-and-Materials and Labor-Hour Contracts, in solicitations and contracts when a time-and-materials or labor-hour contract is contemplated. If the contracting officer determines that it is necessary to withhold payment to protect the Government’s interests, paragraph (a)(7) of the clause permits the contracting officer to unilaterally issue a modification requiring the contractor to withhold 5 percent of amounts due, up to a maximum of $50,000 under the contract. The contracting officer shall ensure that the modification specifies the percentage and total amount of the withhold payment. Normally, there should be no need to withhold payment for a contractor with a record of timely submittal of the release discharging the Government from all liabilities, obligations, and claims, as required by paragraph (g) of the clause. | |
| Clause Overview: |
Clause | |
| Important Notes/Requirements: | ||
| Subcontract Threshold: | ||
| Incorporated by Reference: | Yes | |
| Uniform Contract Format: | ||
| Editor: | Marshall | |
Personal notes.
