49.112
Payment
FAR 49.112 ensures contractors are fairly and promptly compensated for work performed and costs incurred after contract termination through structured partial and final payment processes.
Overview
FAR 49.112 addresses the procedures and requirements for making payments to contractors after contract termination, specifically focusing on partial and final payments. This section ensures that contractors are compensated for work performed and costs incurred up to the point of termination, in accordance with the terms of the contract and applicable regulations. The section references two key subsections: 49.112-1 (Partial payments) and 49.112-2 (Final payment), which detail the processes for issuing interim and final payments to contractors following a termination settlement proposal.
Key Rules
- Partial Payments (49.112-1)
- Allows for interim payments to contractors for amounts due before the final settlement is reached, provided certain conditions are met.
- Final Payment (49.112-2)
- Outlines the requirements and procedures for issuing the final payment to the contractor after the settlement of all claims and obligations.
Responsibilities
- Contracting Officers: Must review and approve partial and final payment requests, ensuring compliance with settlement agreements and regulatory requirements.
- Contractors: Must submit accurate and complete settlement proposals and supporting documentation to receive payment.
- Agencies: Responsible for oversight of payment processes and ensuring timely and accurate disbursement of funds.
Practical Implications
- This section exists to ensure fair and timely compensation to contractors after contract termination, minimizing financial hardship and disputes.
- It impacts daily contracting by establishing clear procedures for requesting and processing payments post-termination.
- Common pitfalls include incomplete documentation, delays in proposal submission, and misunderstandings about allowable costs or payment timing.