52.236-2
Differing Site Conditions
Prompt written notification of differing site conditions is essential for contractors to preserve their right to an equitable adjustment under the contract.
Overview
FAR 52.236-2, Differing Site Conditions, establishes the procedures and requirements for contractors to follow when encountering site conditions that differ materially from those indicated in the contract or from those ordinarily encountered in similar work. The clause is designed to ensure that contractors are fairly compensated or adjusted for unforeseen physical conditions that could impact cost or schedule. Prompt written notification to the Contracting Officer is required before disturbing the conditions, and the Contracting Officer must investigate and determine if an equitable adjustment is warranted. Failure to provide timely notice or requests made after final payment will bar the contractor from receiving an adjustment.
Key Rules
- Prompt Written Notice
- Contractors must provide written notice to the Contracting Officer before disturbing any differing site conditions.
- Types of Differing Conditions
- Covers both subsurface/latent conditions differing from contract indications and unknown, unusual physical conditions not typically encountered.
- Equitable Adjustment
- If conditions materially differ and affect cost or time, an equitable adjustment to the contract is required.
- Timeliness of Requests
- Requests for adjustment must be made before final payment and only if proper notice was given, unless the Contracting Officer extends the notice period.
Responsibilities
- Contracting Officers: Investigate reported conditions, determine if an equitable adjustment is warranted, and modify the contract as needed.
- Contractors: Promptly notify the Contracting Officer in writing of differing site conditions and submit timely requests for adjustment.
- Agencies: Ensure oversight and compliance with notification and adjustment procedures.
Practical Implications
- This clause protects both contractors and the government from unforeseen site conditions that could impact project cost or schedule.
- Contractors must be diligent in identifying and reporting differing conditions to preserve their rights to an adjustment.
- Failure to follow notification procedures is a common pitfall that can result in denied claims for additional compensation or time.