Site Investigation and Conditions Affecting the Work
Contractors are fully responsible for investigating and understanding site conditions before bidding, and cannot claim extra costs for issues they should have reasonably discovered.
Overview
FAR 52.236-3, "Site Investigation and Conditions Affecting the Work," requires contractors to thoroughly investigate and understand the site and local conditions before bidding and performing work. Contractors must assess all factors that could impact the work or its cost, such as transportation, labor, utilities, weather, ground conditions, and necessary equipment. The clause makes clear that the contractor is responsible for any failure to properly estimate the difficulty or cost of the work due to inadequate site investigation. The Government does not guarantee the accuracy of information provided about the site, nor does it accept responsibility for any interpretations or assumptions made by the contractor unless explicitly stated in the contract.
Key Rules
- Contractor's Due Diligence
- Contractors must take all reasonable steps to investigate and understand site conditions and factors affecting the work and its cost.
- Assumption of Risk
- Contractors bear the risk for any misjudgments or failures to investigate, and cannot claim additional costs due to unforeseen site conditions unless the contract specifically provides otherwise.
- Government's Limited Responsibility
- The Government is not responsible for contractor assumptions or interpretations based on provided information unless expressly stated in the contract.
Responsibilities
- Contracting Officers: Ensure this clause is included in applicable contracts and that contractors are aware of their obligations.
- Contractors: Conduct thorough site investigations and factor all relevant conditions into their bids and performance plans.
- Agencies: Provide available site information but clarify that responsibility for interpretation rests with the contractor.
Practical Implications
- This clause exists to place the burden of site investigation and risk assessment on the contractor, reducing the likelihood of claims for unforeseen conditions.
- Contractors must be diligent in pre-bid site visits and research, as failure to do so can result in significant financial risk.
- Common pitfalls include underestimating site challenges or relying on informal government statements not included in the contract.