[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR36.207]



[Page 739]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 36_CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS--Table of Contents

 

      Subpart 36.2_Special Aspects of Contracting for Construction

 

Sec. 36.207  Pricing fixed-price construction contracts.



    (a) Generally, firm-fixed-price contracts shall be used to acquire 

construction. They may be priced (1) on a lump-sum basis (when a lump 

sum is paid for the total work or defined parts of the work), (2) on a 

unit-price basis (when a unit price is paid for a specified quantity of 

work units), or (3) using a combination of the two methods.

    (b) Lump-sum pricing shall be used in preference to unit pricing 

except when--

    (1) Large quantities of work such as grading, paving, building 

outside utilities, or site preparation are involved;

    (2) Quantities of work, such as excavation, cannot be estimated with 

sufficient confidence to permit a lump-sum offer without a substantial 

contingency;

    (3) Estimated quantities of work required may change significantly 

during construction; or

    (4) Offerors would have to expend unusual effort to develop adequate 

estimates.

    (c) Fixed-price contracts with economic price adjustment may be used 

if such a provision is customary in contracts for the type of work being 

acquired, or when omission of an adjustment provision would preclude a 

significant number of firms from submitting offers or would result in 

offerors including unwarranted contingencies in proposed prices.