FAR 52.232-9 - Limitation on Withholding of Payments

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Prescribed in 32.111(b)(2)
Effective Date:	1 April 1984
Clause or Provision:	Clause
Provision or Clause Number:	52.232-9 - Limitation on Withholding of Payments
Principle Type And/Or Purpose of Contract:
Required:	Fixed Price, Supply; Cost Reimbursement, Supply; Fixed Price, R&D; Cost Reimbursement, R&D; Fixed Price, Service; Cost Reimbursement, Service; Time & Material/Labor Hour; Leasing of Motor Vehicles
Applicable:	Time and Materials/Labor Hour; Facilities; Dismantling, Demolition or Removal of Improvements; Cost Reimbursement, Construction; Fixed Price, Construction; Indefinite Delivery; Simplified Acquisition Procedures (Excludes Micro-Purchase); Utility Services
Optional:
Subject:	Invoices and Payments
ProcurementType:
Contract Threshold:
Prescription Overview:	Prescription (b) The contracting officer shall insert the following clauses, appropriately modified with respect to payment due dates in accordance with agency regulations: (2) A clause, substantially the same as the clause at 52.232-9, Limitation on Withholding of Payments, in solicitations and contracts when a supply contract, research and development contract, service contract, time-and-materials contract, or labor-hour contract is contemplated that includes two or more terms authorizing the temporary withholding of amounts otherwise payable to the contractor for supplies delivered or services performed.
Clause Overview:	Clause If more than one clause or Schedule term of this contract authorizes the temporary withholding of amounts otherwise payable to the Contractor for supplies delivered or services performed, the total of the amounts withheld at any one time shall not exceed the greatest amount that may be withheld under any one clause or Schedule term at that time; provided, that this limitation shall not apply to— (a) Withholdings pursuant to any clause relating to wages or hours of employees; (b) Withholdings not specifically provided for by this contract; (c) The recovery of overpayments; and (d) Any other withholding for which the Contracting Officer determines that this limitation is inappropriate.
Important Notes/Requirements:	Applicability Applicable when a supply contract, research and development contract, service contract, time-and-materials contract, or labor-hour contract is contemplated that includes two or more terms authorizing the temporary withholding of amounts otherwise payable to the contractor for supplies delivered or services performed. Clause Summary What this clause is essentially saying is that if there are two clauses in the contract that allow withholding, then the total amount withheld cannot be doubled. The withholding amount can only be the maximum of one of the clauses. For instance, FAR 52.232-7 - Payments under Time-and-Materials and Labor Hour Contracts allows for a 5% up to $50,000 amount. FAR 52.232-12 - Advance Payments, also allows for the withholding of a percent of the contract price. This clause [FAR 52.232-9] limits the withholding to the maximum of the clause that has the greatest withholding, and does not allow both withholds to be applied separately, allowing for a greater withhold.
Subcontract Threshold:
Incorporated by Reference:	Yes
Uniform Contract Format:	I
Editor:	Marshall

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Personal notes.