36.503
Site investigation and conditions affecting the work
Contracting officers must include the site investigation clause in fixed-price construction contracts over the simplified acquisition threshold to ensure contractors assess and account for site conditions.
Overview
FAR 36.503 requires contracting officers to include the clause at 52.236-3, "Site Investigation and Conditions Affecting the Work," in solicitations and contracts for fixed-price construction or fixed-price dismantling, demolition, or removal of improvements when the contract amount is expected to exceed the simplified acquisition threshold. The clause may also be included at the contracting officer's discretion for contracts at or below the threshold. This clause obligates contractors to investigate the site and understand all conditions that may affect the work, ensuring that bids and performance are based on accurate site knowledge.
Key Rules
- Mandatory Clause Inclusion for Larger Contracts
- The clause at 52.236-3 must be included in fixed-price construction or related contracts exceeding the simplified acquisition threshold.
- Discretionary Clause Inclusion for Smaller Contracts
- The clause may be included for contracts at or below the simplified acquisition threshold at the contracting officer's discretion.
Responsibilities
- Contracting Officers: Must include the clause in applicable contracts and may use discretion for smaller contracts.
- Contractors: Must conduct thorough site investigations and account for all site conditions in their bids and performance.
- Agencies: Ensure compliance with clause inclusion and monitor contractor adherence to site investigation requirements.
Practical Implications
- This section ensures contractors are aware of and account for site-specific risks, reducing disputes and change orders.
- Contractors who fail to investigate the site may be held responsible for unforeseen conditions.
- Common pitfalls include inadequate site visits or assumptions about site conditions, leading to performance or cost issues.