52.232-1
Payments
FAR 52.232-1 ensures contractors are paid for accepted supplies or services and allows for partial payments under specific conditions, provided proper invoicing is followed.
Overview
FAR 52.232-1, "Payments," establishes the basic payment terms for fixed-price supply and service contracts, as well as contracts for nonregulated communication services. It outlines the process by which contractors are paid for supplies delivered or services rendered and accepted by the Government. The clause allows for payment upon submission of proper invoices or vouchers, subject to any contract-specific deductions. It also provides for partial payments on accepted partial deliveries if the amount due is significant or if the contractor requests payment and the amount is at least $1,000 or 50% of the total contract price. Agencies may modify the payment due date in accordance with their regulations.
Key Rules
- Payment Upon Acceptance
- Contractors are paid for supplies or services only after delivery and Government acceptance, and upon submission of proper invoices or vouchers.
- Partial Payments
- Payment for partial deliveries is allowed if the amount due warrants it, or if requested by the contractor and the amount is at least $1,000 or 50% of the contract price.
- Deductions
- Payments are subject to any deductions specified in the contract.
- Agency Modifications
- Agencies may adjust payment due dates per their own regulations.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and that payment terms comply with agency regulations.
- Contractors: Submit proper invoices or vouchers for accepted supplies/services and request partial payments as allowed.
- Agencies: May set specific payment due dates and must process payments in accordance with the clause and agency rules.
Practical Implications
- This clause ensures contractors are paid promptly for accepted work, with flexibility for partial payments on large or phased deliveries.
- Contractors must ensure invoices are accurate and timely to avoid payment delays.
- Common issues include improper invoicing or misunderstanding eligibility for partial payments.