Design Within Funding Limitations
Contractors must design federal construction projects to stay within specified funding limits and may be required to redesign at no extra cost if bids exceed those limits, unless due to uncontrollable factors.
Overview
FAR 52.236-22, "Design Within Funding Limitations," requires contractors providing design services for federal construction projects to ensure their designs can be built within a specified funding limit. The clause mandates that the design must allow for the award of a construction contract at or below the estimated construction contract price stated in the contract. If construction bids exceed this estimate, the contractor must redesign at no additional cost, unless the overage is due to factors beyond their control. Contractors must also promptly notify the Contracting Officer if they believe the project cannot be designed within the funding limitation. The Government may then adjust the project scope, materials, or the funding limit as needed. This clause ensures fiscal discipline and accountability in the design phase of government construction projects.
Key Rules
- Design Within Funding Limit
- Contractors must design facilities so construction can be awarded within the specified funding limitation.
- Redesign Obligation
- If bids exceed the funding limit, contractors must redesign at no extra cost unless the overage is outside their control.
- Notification Requirement
- Contractors must promptly inform the Contracting Officer if the design cannot meet the funding limitation.
- Government Review and Adjustment
- The Government may adjust the project scope, materials, or funding limit if the estimate is too low or bids are delayed.
Responsibilities
- Contracting Officers: Monitor compliance, review cost estimates, and authorize changes if needed.
- Contractors: Design within funding limits, provide timely notifications, and perform redesigns as required.
- Agencies: Oversee project funding and ensure fiscal discipline.
Practical Implications
- This clause enforces budget discipline in federal construction projects.
- Contractors must manage design choices to stay within budget and be proactive in communicating cost issues.
- Failure to comply can result in redesign obligations without additional compensation, unless justified by external factors.