31.201-7
Construction and architect-engineer contracts
For construction and architect-engineer contracts, always use the cost principles in FAR 31.105 and confirm applicability with FAR 31.000 and 31.100.
Overview
FAR 31.201-7 clarifies that the specific cost principles and procedures for evaluating and determining allowable costs on construction and architect-engineer contracts are found in FAR 31.105. It directs contracting professionals to refer to that section for detailed guidance, and notes that the scope of applicability for these principles is outlined in FAR 31.000 and 31.100. This subsection serves as a cross-reference to ensure that the correct cost principles are applied to construction-related contracts and subcontracts.
Key Rules
- Reference to FAR 31.105
- All cost evaluations for construction and architect-engineer contracts must follow the principles and procedures in FAR 31.105.
- Applicability Guidance
- The scope and applicability of these cost principles are defined in FAR 31.000 and 31.100, which should be consulted to determine when these rules apply.
Responsibilities
- Contracting Officers: Must ensure that cost evaluations for construction and architect-engineer contracts adhere to FAR 31.105 and confirm applicability using FAR 31.000 and 31.100.
- Contractors: Should prepare cost proposals and claims in accordance with the referenced cost principles and procedures.
- Agencies: Should provide oversight to ensure compliance with the correct cost principles for construction-related contracts.
Practical Implications
- This subsection exists to prevent confusion and ensure that the unique cost principles for construction and architect-engineer contracts are consistently applied.
- It impacts daily contracting by requiring professionals to reference the correct FAR sections for cost allowability, reducing the risk of misapplication.
- Common pitfalls include overlooking the cross-reference and applying general cost principles instead of those specific to construction contracts.