Limitation on Withholding of Payments
FAR 52.232-9 limits the total amount withheld from contractor payments to the largest single authorized withholding, preventing excessive cumulative withholdings except for specified exceptions.
Overview
FAR 52.232-9, Limitation on Withholding of Payments, establishes a cap on the total amount that can be temporarily withheld from contractor payments when multiple contract clauses or schedule terms authorize such withholdings. The clause ensures that, except for specific exceptions, the total withheld at any one time does not exceed the largest single withholding amount authorized by any one clause or term. This prevents excessive cumulative withholdings that could unduly impact contractor cash flow. Exceptions include withholdings related to employee wages or hours, those not specifically provided for in the contract, recovery of overpayments, and any other withholdings the Contracting Officer deems exempt from this limitation. The clause is required in contracts for supplies, services, time-and-materials, labor-hour, or R&D that contain two or more withholding provisions.