36.518
Work oversight in cost-reimbursement construction contracts
Always include the 52.236-18 oversight clause in cost-reimbursement construction contracts to ensure proper government supervision and compliance.
Overview
FAR 36.518 requires contracting officers to include the clause at 52.236-18, "Work Oversight in Cost-Reimbursement Construction Contracts," in all solicitations and contracts where a cost-reimbursement construction contract is anticipated. This ensures that oversight provisions are formally established, clarifying the government's authority and expectations regarding supervision and inspection of the contractor's work. The clause is designed to protect government interests by providing clear oversight mechanisms in contracts where costs are reimbursed rather than fixed, which can present higher risks of cost overruns or inefficiencies.
Key Rules
- Clause Inclusion Requirement
- The clause at 52.236-18 must be inserted in all solicitations and contracts for cost-reimbursement construction projects.
- Applicability
- Applies specifically to cost-reimbursement construction contracts, not to fixed-price or other contract types.
Responsibilities
- Contracting Officers: Must ensure the correct clause is included in all relevant solicitations and contracts.
- Contractors: Must comply with the oversight provisions specified in the clause once included in the contract.
- Agencies: Should monitor compliance and ensure proper oversight mechanisms are in place for cost-reimbursement construction contracts.
Practical Implications
- This section exists to ensure that government oversight is explicitly addressed in cost-reimbursement construction contracts, which are inherently riskier for the government.
- Failure to include the required clause can lead to oversight gaps, increased risk of disputes, and potential noncompliance with FAR requirements.
- Contractors should be aware that enhanced oversight and reporting may be required under these contracts, impacting project management and documentation practices.