49.602-4
Partial payments
Contractors must use Standard Form 1440 to request partial payments during the settlement of terminated contracts.
Overview
FAR 49.602-4 specifies that Standard Form 1440, Application for Partial Payment, must be used when applying for partial payments related to the settlement of terminated contracts. This requirement ensures a standardized process for requesting and processing partial payments during contract termination settlements, as referenced in FAR 49.112-1. The use of this form helps both contractors and contracting officers maintain proper documentation and compliance with federal regulations during the settlement process.
Key Rules
- Use of Standard Form 1440
- Contractors must use SF 1440 to request partial payments for terminated contracts.
- Reference to FAR 49.112-1
- The procedures for partial payments are further detailed in FAR 49.112-1, which should be consulted for additional requirements.
Responsibilities
- Contracting Officers: Must ensure that contractors submit SF 1440 for partial payment requests and process these requests in accordance with FAR procedures.
- Contractors: Must complete and submit SF 1440 when seeking partial payments during the settlement of terminated contracts.
- Agencies: Should oversee the use of the correct forms and maintain records for audit and compliance purposes.
Practical Implications
- This section exists to standardize the process for partial payments in contract terminations, reducing errors and ensuring compliance.
- Contractors who fail to use SF 1440 may experience delays or denials in payment.
- Proper use of the form streamlines settlements and supports accurate record-keeping for both parties.