Subpart 37.3
Dismantling, Demolition, or Removal of Improvements
FAR Subpart 37.3 ensures that contracts for dismantling, demolition, or removal of improvements are executed safely and in compliance with labor, security, and payment regulations.
Overview
FAR Subpart 37.3 addresses the requirements and procedures for contracts involving the dismantling, demolition, or removal of improvements from government property. This subpart outlines the labor standards that apply, the need for bonds or other security, payment procedures, and the specific contract clauses that must be included. Its purpose is to ensure that such contracts are executed safely, legally, and in accordance with federal regulations, protecting both the government and contractors.
Key Rules
- Labor Standards
- Contracts for dismantling, demolition, or removal must comply with applicable labor laws, such as the Davis-Bacon Act, ensuring fair wages and working conditions.
- Bonds or Other Security
- Contractors may be required to provide performance and payment bonds or other forms of security to guarantee contract fulfillment and payment to workers and suppliers.
- Payments
- The subpart specifies how and when payments are to be made to contractors, including any conditions or milestones that must be met.
- Contract Clauses
- Specific clauses must be included in contracts to address unique risks and requirements associated with dismantling, demolition, or removal work.
Responsibilities
- Contracting Officers: Must ensure contracts include required labor standards, security provisions, payment terms, and appropriate clauses.
- Contractors: Must comply with labor laws, provide required bonds or security, and adhere to payment and contract clause requirements.
- Agencies: Oversee compliance, enforce labor standards, and ensure proper contract administration.
Practical Implications
- This subpart exists to mitigate risks associated with demolition and removal work, such as safety hazards and non-payment of workers.
- It impacts daily contracting by requiring careful attention to labor laws, bonding, and contract terms.
- Common pitfalls include failing to secure proper bonds, omitting required clauses, or non-compliance with labor standards.