52.236-7
Permits and Responsibilities
Contractors must obtain all necessary permits, comply with all applicable laws, and are responsible for damages and materials until project acceptance, at no extra cost to the government.
Overview
FAR 52.236-7, Permits and Responsibilities, requires contractors to obtain all necessary licenses and permits and comply with all applicable federal, state, and local laws, codes, and regulations during contract performance, at no additional cost to the government. Contractors are also responsible for any damages to persons or property resulting from their fault or negligence, and must safeguard all materials delivered and work performed until the entire project is completed and accepted, unless a specific unit of work has been accepted earlier under the contract. This clause places the burden of legal compliance and risk management squarely on the contractor throughout the contract lifecycle.
Key Rules
- Licenses and Permits
- Contractors must secure all required licenses and permits for the work at their own expense.
- Compliance with Laws
- Contractors must adhere to all applicable federal, state, and municipal laws, codes, and regulations.
- Responsibility for Damages
- Contractors are liable for any damages to persons or property caused by their fault or negligence.
- Care of Materials and Work
- Contractors are responsible for all materials delivered and work performed until final acceptance, except for units accepted earlier.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and monitor contractor compliance.
- Contractors: Obtain all necessary permits, comply with all laws and codes, manage risks, and protect materials and work until acceptance.
- Agencies: Oversee contractor compliance and enforce contract terms regarding permits, legal compliance, and risk management.
Practical Implications
- This clause ensures that contractors bear the full responsibility for legal compliance and risk management, reducing government liability.
- Contractors must proactively manage permitting, legal compliance, and site safety to avoid delays, penalties, or liability for damages.
- Common pitfalls include failing to secure permits on time, overlooking local regulations, or inadequate risk management leading to damages or losses.