29.401-2
Construction contracts performed in North Carolina
Always include FAR clause 52.229-2 in construction contracts performed in North Carolina, and use Alternate I for vessel repair work.
Overview
FAR 29.401-2 requires contracting officers to include a specific clause (52.229-2, North Carolina State and Local Sales and Use Tax) in all solicitations and contracts for construction projects performed in North Carolina. For contracts involving vessel repair in North Carolina, the clause must be used with its Alternate I. This ensures that contractors are aware of and comply with state and local tax obligations relevant to their work in North Carolina.
Key Rules
- Clause Inclusion for Construction
- All construction contracts in North Carolina must include FAR clause 52.229-2.
- Vessel Repair Contracts
- For vessel repair contracts in North Carolina, the clause must be included with Alternate I.
Responsibilities
- Contracting Officers: Must ensure the correct clause (and Alternate I for vessel repair) is included in applicable solicitations and contracts.
- Contractors: Must comply with the requirements of the clause regarding state and local sales and use tax in North Carolina.
- Agencies: Should oversee compliance with clause inclusion and tax requirements.
Practical Implications
- This section ensures federal contracts in North Carolina address state and local tax obligations, reducing risk of non-compliance.
- Contractors must be prepared to manage and document tax payments as required by the clause.
- Omitting the clause can lead to contract administration issues or disputes over tax liability.