Special Aspects of Contracting for Construction
FAR Subpart 36.2 provides specialized rules and procedures to ensure effective, compliant, and transparent contracting for federal construction projects.
Overview
FAR Subpart 36.2, "Special Aspects of Contracting for Construction," outlines unique requirements and procedures that apply specifically to federal construction contracts. This subpart addresses critical elements such as contractor performance evaluation, specification development, government cost estimates, disclosure of project magnitude, statutory cost limitations, liquidated damages, and pricing methods for construction contracts. It also covers procedures for concurrent contract types, restrictions on contracting with architect-engineer firms, site inspections, distribution of solicitations, preconstruction orientations, and special bidding and negotiation procedures. The subpart is organized into individual sections, each focusing on a specific aspect of construction contracting, ensuring that both contracting officers and contractors understand their roles and compliance obligations throughout the acquisition lifecycle.
Key Rules
- Evaluation of Contractor Performance
- Establishes requirements for assessing and documenting contractor performance on construction projects.
- Specifications and Cost Estimates
- Details the preparation and use of specifications and government cost estimates for construction work.
- Disclosure and Cost Limitations
- Requires disclosure of project magnitude and adherence to statutory cost limits.
- Liquidated Damages and Pricing
- Provides guidance on the use of liquidated damages and pricing methods for fixed-price contracts.
- Special Procedures
- Outlines procedures for sealed bidding, price negotiation, and cost-reimbursement contracts in construction.
Responsibilities
- Contracting Officers: Must ensure compliance with evaluation, specification, cost estimation, disclosure, and procedural requirements; manage contract types and enforce statutory limitations.
- Contractors: Must adhere to specifications, participate in required orientations, comply with cost and performance standards, and understand bidding/negotiation procedures.
- Agencies: Oversee compliance, maintain performance records, and ensure statutory and regulatory requirements are met.
Practical Implications
- This subpart exists to address the complexities and risks unique to construction contracting, such as cost overruns, performance issues, and statutory constraints.
- It impacts daily contracting by requiring rigorous planning, documentation, and adherence to specialized procedures.
- Common pitfalls include inadequate cost estimation, failure to disclose project magnitude, and non-compliance with statutory cost limits or performance evaluation requirements.