Performance of work by the contractor
Contractors on large fixed-price construction contracts must perform a specified minimum percentage of work with their own forces, typically at least 12%, to ensure adequate oversight and project involvement.
Overview
FAR 36.501 establishes requirements for contractors to perform a minimum percentage of construction work with their own forces on larger projects. This ensures contractors maintain direct involvement and oversight, rather than subcontracting the majority of the work. The contracting officer sets the required percentage, typically not less than 12%, but may adjust it based on project complexity, customary subcontracting practices, or legal/agency requirements. Specialty trades like plumbing, heating, and electrical are generally excluded from this calculation. The section also mandates the inclusion of clause 52.236-1 in most fixed-price construction contracts over $2 million, with optional use for contracts at or below $2 million, except for certain small business and set-aside contracts.