52.247-23 Contractor Liability for Loss of and/or Damage to Household Goods
Source: FAR 52.247-23 on acquisition.gov
Contractors are liable for loss or damage to household goods during all stages of a government move unless the cause is beyond their control, and must indemnify owners if notified within 75 days of delivery.
Overview
FAR 52.247-23 establishes the contractor's liability for loss of and/or damage to household goods during government-contracted moves. The clause requires contractors to be responsible for any loss or damage to household goods unless the cause was beyond their control and not due to their fault or negligence. This liability covers all stages of the move, including packing, loading, transportation, storage in transit, delivery, unloading, unpacking, and servicing by third parties hired by the contractor. The contractor's liability is triggered if the owner provides written notice of loss or damage within 75 days of delivery. The contractor must indemnify the owner at a specified rate per pound per article for any loss or damage.
Key Rules
- Contractor Liability
- Contractors are liable for loss or damage to household goods unless the cause is beyond their control and not due to their fault or negligence.
- Covered Activities
- Liability applies during packing, loading, transporting, storage in transit, delivery, unloading, unpacking, and servicing by third parties hired by the contractor.
- Notice Requirement
- The owner must dispatch written notice of loss or damage to the contractor within 75 days of delivery for the contractor to be held liable.
- Indemnification Rate
- Contractors must indemnify the owner at a specified rate (to be filled in the contract) per pound per article.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and the indemnification rate is specified.
- Contractors: Maintain care and custody of household goods, respond to claims within the notice period, and indemnify owners as required.
- Agencies: Oversee compliance and resolve disputes as needed.
Practical Implications
- This clause protects owners of household goods during government moves by holding contractors accountable for loss or damage.
- Contractors must have processes to track, document, and respond to claims within the 75-day window.
- Failure to comply can result in financial liability and potential contract disputes.
As prescribed in 47.207-7(e), insert the following clause:
Contractor Liability for Loss of and/or Damage to Household Goods (Jan 1991)
(a) Except when loss and/or damage arise out of causes beyond the control and without the fault or negligence of the Contractor, the Contractor shall be liable to the owner for the loss of and/or damage to any article while being-
(1) Packed, picked up, loaded, transported, delivered, unloaded, or unpacked;
(2) Stored in transit; or
(3) Serviced (appliances, etc.) by a third person hired by the Contractor to perform the servicing.
(b) The Contractor shall be liable for loss and/or damage discovered by the owner if written notice of such loss and/or damage is dispatched to the Contractor not later than 75 days following the date of delivery.
(c) The Contractor shall indemnify the owner of the goods at a rate of ___ cents per pound per article.
(End of clause)