What are mandatory FAR clauses?

What are mandatory FAR clauses?

FAR clauses included in Government contracts that prime contractors are required to flow down to their subcontractors in their subcontracts. Agency supplemental regulations also include clauses with flow down requirements. Flow Down Clauses can significantly impact the obligations and risk of performing a subcontract.

What are the only exceptions to final acceptance?

The FAR Inspection of Construction clause states that “Acceptance shall be final and conclusive except for latent defects, fraud, gross mistakes amounting to fraud, or the government’s right under any warranty or guarantee.”

How many FAR clauses are there?

Website: Federal Acquisition Regulations (FAR) The FAR is divided into 53 parts, organized into 8 Subchapters designated A through H.

What are flow-down clauses?

In general, flow-down clauses provide that a subcontractor is subject to the same rights and obligations to which the prime contractor is subject under the prime contract. They systematically ensure that an owner’s expectations of quality and contract administration run through the whole project.

Do FAR clauses apply to subcontractors?

Subcontractor status is important to prime and subcontractors. A federal prime contractor is required to flow-down multiple Federal Acquisition Regulation (“FAR”) clauses to its subcontractors.

What are the conditions to be met for a contract closeout?

A Contract Closeout occurs when a contract has met all the terms of a contract and all administrative actions have been completed, all disputes settled, and final payment has been made. This includes those administrative actions that are contractually required; i.e. property, security, patents, and royalties.

Is FARs a law?

It regulates purchasing of goods and services by government. It does not regulate the purchasing activities of private sector, except to the extent of it is incorporated into government solicitations and contracts by reference. The FAR is codified in Title 48 of the U.S. Code of Federal Regulations.

What is the conduit clause?

The subcontract typically has “pass through” or “conduit” and “pay if paid” clauses. These clauses bind the subcontractor or supplier to the general contract terms and deny any extra time or money for the subcontractor or supplier unless the general contractor obtains relief from the owner.

What is a pass through clause?

Pass-through clauses (a.k.a. flow-down or conduit clauses), typically incorporate by reference the terms of a prime contract between owner and general contractor into a subcontract, thereby binding subcontractors to the same duties and obligations – and to the same extent – as the general contractor has to the owner.

ARE FAR clauses self deleting?

There is No Such Thing as a “Self-Deleting” Clause! This is the infamous myth of “self-deleting” clauses. The theory behind this canard is that if the clause is somehow inappropriate for or inapplicable to the contract, it is somehow “self-deleting,” and will not be considered enforceable in a court of law.

What is the difference between a prime contractor and a subcontractor?

Unlike prime contractors, subcontractors do not work directly with the government, but instead work for other contractors. Some government contracts require large companies to subcontract with a small business. This creates more opportunities for small businesses to get involved in federal contracting.

What are closeout procedures?

Project closeout is the successful completion of a project and the final transfer of assets to the client. It includes heavy oversight to ensure the project is ready, like checking specifications, collecting documents and closing out existing contracts for equipment rentals or subcontractors.

What is contract closeout process?

The closeout process is a process to finish or resolve all contractual requirements for a physically complete contract. Closeout is completed when all administrative actions have been completed, all disputes settled, and final payment has been made.