52.232-10
Payments under Fixed-Price Architect-Engineer Contracts
FAR 52.232-10 requires monthly substantiated payment requests, allows for government withholdings, and mandates a release of claims before final payment on fixed-price architect-engineer contracts.
Overview
FAR 52.232-10 outlines the payment procedures for fixed-price architect-engineer (A-E) contracts. It establishes requirements for monthly progress payments based on work performed, potential withholdings to protect the Government’s interests, and the process for final payment upon contract completion. The clause also addresses limitations on progress payments for undefinitized contract actions and requires a release of claims before final payment.
Key Rules
- Monthly Estimates and Vouchers
- Contractors must submit monthly estimates of work performed, meeting contract quality standards, along with supporting data and vouchers.
- Government Review and Withholding
- The Government pays approved vouchers but may withhold up to 10% if necessary to protect its interests, based on contractor performance. Excess withholdings are released when work is substantially complete.
- Final Payment
- Upon satisfactory completion and acceptance of all work, the contractor receives the unpaid balance, including withheld amounts.
- Release of Claims
- Before final payment or settlement, contractors must provide a release of all claims against the Government, except those specifically excepted.
- Limit on Progress Payments for Undefinitized Actions
- Progress payments for undefinitized contract actions are capped at 80% of work accomplished until definitization.
Responsibilities
- Contracting Officers: Review and approve vouchers, determine and manage withholdings, ensure release of claims, and enforce payment limits on undefinitized actions.
- Contractors: Submit accurate monthly estimates and vouchers, provide supporting data, comply with withholdings, execute release of claims, and adhere to payment caps on undefinitized actions.
- Agencies: Oversee compliance with payment procedures and protect government interests.
Practical Implications
- This clause ensures timely and controlled payments for A-E contracts, balancing contractor cash flow with government risk mitigation. Contractors must maintain accurate records and be prepared for potential withholdings. Failure to provide required documentation or releases can delay payments. The 80% cap on undefinitized actions prevents overpayment before contract terms are finalized.