33.201
Definitions
In FAR disputes, precise definitions matter: contractors must know when a claim accrues, certify claims correctly, and recognize when a disagreement can become a formal claim or be resolved through ADR.
Overview
- FAR 33.201 provides the core definitions used in Subpart 33.2, Disputes and Appeals, establishing the meaning of key terms that control when a disagreement becomes a claim and how it may be resolved.
- These definitions are foundational because they affect claim timing, certification validity, and the use of voluntary dispute-resolution methods.
Key Rules
- Accrual of a claim
- A claim accrues when all events fixing alleged liability were known or should have been known, and some injury has occurred. Actual monetary damages do not need to have been incurred for accrual.
- Alternative dispute resolution (ADR)
- ADR includes voluntary procedures such as mediation, arbitration, conciliation, fact-finding, minitrials, facilitation, and ombudsmen to resolve issues in controversy.
- Defective certification / Issue in controversy / Misrepresentation of fact
- A defective certification is one that departs from the required language in FAR 33.207(c) or is signed by someone without authority; complete failure to certify is not merely defective. An issue in controversy is a material disagreement that may become a claim or is part of one. Misrepresentation of fact involves a false material statement or deceptive conduct intended to mislead.
Responsibilities
- Contracting Officers: apply these definitions consistently when evaluating disputes, claims timing, ADR suitability, and certification issues.
- Contractors: identify when claims accrue, ensure certifications are properly worded and signed, and understand when disagreements may become formal claims.
- Agencies: support proper dispute handling and encourage appropriate use of ADR.
Practical Implications
- This section exists to create common terminology for disputes and appeals.
- It affects statute-of-limitations analysis, claim preparation, and whether a certification problem can be corrected.
- Common pitfalls include waiting too long after claim accrual, using unauthorized signatories, and confusing a missing certification with a defective one.