Contractor Liability for Loss of and/or Damage to Freight other than Household Goods
Contractors transporting government freight (other than household goods) are fully liable for loss or damage unless they can prove it was beyond their control and not due to their fault or negligence.
Overview
This clause establishes that contractors transporting freight (excluding household goods) under government contracts are fully liable for any loss or damage to the goods during transit, unless the loss or damage results from causes beyond their control and without their fault or negligence. The clause is mandatory in solicitations and contracts for the transportation of freight other than household goods, as prescribed by FAR 47.207-7(d). Its primary purpose is to protect the government's interests by ensuring contractors are responsible for safeguarding freight during movement, except in cases of uncontrollable events or circumstances where the contractor is not at fault.
Key Rules
- Contractor Liability
- Contractors are fully liable for any loss or damage to freight during transportation unless the loss or damage is due to uncontrollable causes and not the contractor's fault or negligence.
- Exclusions to Liability
- Liability does not apply if the loss or damage arises from causes beyond the contractor's control and without their fault or negligence.
Responsibilities
- Contracting Officers: Must include this clause in all applicable solicitations and contracts for freight transportation (excluding household goods).
- Contractors: Must ensure the safe transport of freight and are responsible for any loss or damage unless they can prove it was beyond their control and not due to their fault or negligence.
- Agencies: Should monitor compliance and assess claims for loss or damage based on the terms of this clause.
Practical Implications
- This clause incentivizes contractors to take all necessary precautions to prevent loss or damage to government freight.
- Contractors should maintain thorough documentation and evidence to demonstrate when loss or damage is outside their control.
- Common issues include disputes over what constitutes causes "beyond control" and establishing the absence of contractor fault or negligence.