46.312
Construction contracts
Include the Inspection of Construction clause (52.246-12) in fixed-price construction contracts exceeding the simplified acquisition threshold, and consider it for lower-value contracts if in the Government’s interest.
Overview
FAR 46.312 requires contracting officers to include the clause at 52.246-12, Inspection of Construction, in solicitations and contracts for construction projects when a fixed-price contract is anticipated and the contract value exceeds the simplified acquisition threshold (SAT). For contracts at or below the SAT, the clause may be included at the contracting officer's discretion if it serves the Government’s interest. This ensures that construction contracts have clear inspection requirements to safeguard the Government’s interests in quality and compliance.
Key Rules
- Mandatory Clause Inclusion Above SAT
- The Inspection of Construction clause (52.246-12) must be included in fixed-price construction contracts exceeding the SAT.
- Discretionary Clause Inclusion at or Below SAT
- The clause may be included in contracts at or below the SAT if the contracting officer determines it is beneficial for the Government.
Responsibilities
- Contracting Officers: Must ensure the appropriate inclusion of clause 52.246-12 based on contract value and type.
- Contractors: Must comply with the inspection requirements outlined in clause 52.246-12 when it is included in their contract.
- Agencies: Should oversee that contracting officers apply this requirement consistently and appropriately.
Practical Implications
- This section ensures that construction contracts have standardized inspection provisions, protecting the Government’s interests in quality assurance.
- Contractors should be prepared for inspection requirements and understand when these apply based on contract value.
- Failure to include or comply with the clause can lead to disputes or contract performance issues.