FAR section 52.232-5

SUBPART 52.2—TEXT OF PROVISIONS AND CLAUSES
52.232-1 Payments.
As prescribed in 32.111(a)(1), insert the following clause,
appropriately modified with respect to payment due date in
accordance with agency regulations, in solicitations and contracts when a fixed-price supply contract, a fixed-price service
contract, or a contract for nonregulated communication services is contemplated:
PAYMENTS (APR 1984)
The Government shall pay the Contractor, upon the submission of proper invoices or vouchers, the prices stipulated
in this contract for supplies delivered and accepted or services
rendered and accepted, less any deductions provided in this
contract. Unless otherwise specified in this contract, payment
shall be made on partial deliveries accepted by the Government if—
(a) The amount due on the deliveries warrants it; or
(b) The Contractor requests it and the amount due on the
deliveries is at least $1,000 or 50 percent of the total contract
price.
(End of clause)
52.232-2 Payments under Fixed-Price Research and
Development Contracts.
As prescribed in 32.111(a)(2), insert the following clause,
as appropriately modified with respect to payment due dates
in accordance with agency regulations, in solicitations and
contracts when a fixed-price research and development contract is contemplated:
PAYMENTS UNDER FIXED-PRICE RESEARCH AND
DEVELOPMENT CONTRACTS (APR 1984)
The Government shall pay the Contractor, upon submission of proper invoices or vouchers, the prices stipulated in
this contract for work delivered or rendered and accepted, less
any deductions provided in this contract. Unless otherwise
specified, payment shall be made upon acceptance of any portion of the work delivered or rendered for which a price is separately stated in the contract.
(End of clause)
52.232-3 Payments under Personal Services Contracts.
As prescribed in 32.111(a)(3), insert the following clause,
appropriately modified with respect to payment due dates in
accordance with agency regulations, in solicitations and contracts for personal services:
PAYMENTS UNDER PERSONAL SERVICES CONTRACTS
(APR 1984)
The Government shall pay the Contractor for the services
performed by the Contractor, as set forth in the Schedule of
this contract, at the rates prescribed, upon the submission by

52.232-5
the Contractor of proper invoices or time statements to the
office or officer designated and at the time provided for in this
contract. The Government shall also pay the Contractor—
(a) A per diem rate in lieu of subsistence for each day the
Contractor is in a travel status away from home or regular
place of employment in accordance with Federal Travel Regulations (41 CFR 101-7) as authorized in appropriate Travel
Orders; and
(b) Any other transportation expenses if provided for in the
Schedule.
(End of clause)
52.232-4 Payments under Transportation Contracts and
Transportation-Related Services Contracts.
As prescribed in 32.111(a)(4), insert the following clause,
appropriately modified with respect to payment due dates in
accordance with agency regulations, in solicitations and contracts for transportation or transportation-related services:
PAYMENTS UNDER TRANSPORTATION CONTRACTS AND
TRANSPORTATION-RELATED SERVICES CONTRACTS
(APR 1984)
The Government shall pay the Contractor upon the submission of properly certified invoices or vouchers, the amount
due for services rendered and accepted, less deductions, if any,
as herein provided.
(End of clause)
52.232-5 Payments under Fixed-Price Construction
Contracts.
As prescribed in 32.111(a)(5), insert the following clause:
PAYMENTS UNDER FIXED-PRICE CONSTRUCTION
CONTRACTS (SEPT 2002)
(a) Payment of price. The Government shall pay the Contractor the contract price as provided in this contract.
(b) Progress payments. The Government shall make
progress payments monthly as the work proceeds, or at more
frequent intervals as determined by the Contracting Officer,
on estimates of work accomplished which meets the standards
of quality established under the contract, as approved by the
Contracting Officer.
(1) The Contractor’s request for progress payments
shall include the following substantiation:
(i) An itemization of the amounts requested, related
to the various elements of work required by the contract covered by the payment requested.
(ii) A listing of the amount included for work performed by each subcontractor under the contract.
(iii) A listing of the total amount of each subcontract
under the contract.
52.2-197

52.232-5
(iv) A listing of the amounts previously paid to each
such subcontractor under the contract.
(v) Additional supporting data in a form and detail
required by the Contracting Officer.
(2) In the preparation of estimates, the Contracting
Officer may authorize material delivered on the site and preparatory work done to be taken into consideration. Material
delivered to the Contractor at locations other than the site also
may be taken into consideration if—
(i) Consideration is specifically authorized by this
contract; and
(ii) The Contractor furnishes satisfactory evidence
that it has acquired title to such material and that the material
will be used to perform this contract.
(c) Contractor certification. Along with each request for
progress payments, the Contractor shall furnish the following
certification, or payment shall not be made: (However, if the
Contractor elects to delete paragraph (c)(4) from the certification, the certification is still acceptable.)
I hereby certify, to the best of my knowledge and belief, that—
(1) The amounts requested are only for performance in
accordance with the specifications, terms, and conditions of the
contract;
(2) All payments due to subcontractors and suppliers from
previous payments received under the contract have been made,
and timely payments will be made from the proceeds of the payment covered by this certification, in accordance with subcontract agreements and the requirements of Chapter 39 of Title 31,
United States Code;
(3) This request for progress payments does not include
any amounts which the prime contractor intends to withhold or
retain from a subcontractor or supplier in accordance with the
terms and conditions of the subcontract; and
(4) This certification is not to be construed as final acceptance of a subcontractor’s performance.
__________________________________________________
(Name)
__________________________________________________
(Title)
__________________________________________________
(Date)

(d) Refund of unearned amounts. If the Contractor, after
making a certified request for progress payments, discovers
that a portion or all of such request constitutes a payment for
performance by the Contractor that fails to conform to the
specifications, terms, and conditions of this contract (hereinafter referred to as the “unearned amount”), the Contractor
shall—
(1) Notify the Contracting Officer of such performance
deficiency; and
52.2-198

FEDERAL ACQUISITION REGULATION
(2) Be obligated to pay the Government an amount
(computed by the Contracting Officer in the manner provided
in paragraph (j) of this clause) equal to interest on the
unearned amount from the 8th day after the date of receipt of
the unearned amount until—
(i) The date the Contractor notifies the Contracting
Officer that the performance deficiency has been corrected; or
(ii) The date the Contractor reduces the amount of
any subsequent certified request for progress payments by an
amount equal to the unearned amount.
(e) Retainage. If the Contracting Officer finds that satisfactory progress was achieved during any period for which a
progress payment is to be made, the Contracting Officer shall
authorize payment to be made in full. However, if satisfactory
progress has not been made, the Contracting Officer may
retain a maximum of 10 percent of the amount of the payment
until satisfactory progress is achieved. When the work is substantially complete, the Contracting Officer may retain from
previously withheld funds and future progress payments that
amount the Contracting Officer considers adequate for protection of the Government and shall release to the Contractor all
the remaining withheld funds. Also, on completion and acceptance of each separate building, public work, or other division
of the contract, for which the price is stated separately in the
contract, payment shall be made for the completed work without retention of a percentage.
(f) Title, liability, and reservation of rights. All material
and work covered by progress payments made shall, at the
time of payment, become the sole property of the Government, but this shall not be construed as—
(1) Relieving the Contractor from the sole responsibility for all material and work upon which payments have been
made or the restoration of any damaged work; or
(2) Waiving the right of the Government to require the
fulfillment of all of the terms of the contract.
(g) Reimbursement for bond premiums. In making these
progress payments, the Government shall, upon request, reimburse the Contractor for the amount of premiums paid for performance and payment bonds (including coinsurance and
reinsurance agreements, when applicable) after the Contractor has furnished evidence of full payment to the surety. The
retainage provisions in paragraph (e) of this clause shall not
apply to that portion of progress payments attributable to bond
premiums.
(h) Final payment. The Government shall pay the amount
due the Contractor under this contract after—
(1) Completion and acceptance of all work;
(2) Presentation of a properly executed voucher; and
(3) Presentation of release of all claims against the Government arising by virtue of this contract, other than claims,
in stated amounts, that the Contractor has specifically
excepted from the operation of the release. A release may also
be required of the assignee if the Contractor’s claim to

FAC 2005–15 FEBRUARY 12, 2007
SUBPART 52.2—TEXT OF PROVISIONS AND CLAUSES
amounts payable under this contract has been assigned under
the Assignment of Claims Act of 1940 (31 U.S.C. 3727 and
41 U.S.C. 15).
(i) Limitation because of undefinitized work. Notwithstanding any provision of this contract, progress payments
shall not exceed 80 percent on work accomplished on
undefinitized contract actions. A “contract action” is any
action resulting in a contract, as defined in FAR Subpart 2.1,
including contract modifications for additional supplies or
services, but not including contract modifications that are
within the scope and under the terms of the contract, such as
contract modifications issued pursuant to the Changes clause,
or funding and other administrative changes.
(j) Interest computation on unearned amounts. In accordance with 31 U.S.C. 3903(c)(1), the amount payable under
paragraph (d)(2) of this clause shall be—
(1) Computed at the rate of average bond equivalent
rates of 91-day Treasury bills auctioned at the most recent auction of such bills prior to the date the Contractor receives the
unearned amount; and
(2) Deducted from the next available payment to the
Contractor.
(End of clause)
52.232-6 Payment under Communication Service
Contracts with Common Carriers.
As prescribed in 32.111(a)(6), insert the following clause,
appropriately modified with respect to payment due dates in
accordance with agency regulations, in solicitations and contracts for regulated communication services by common
carriers:
PAYMENT UNDER COMMUNICATION SERVICE CONTRACTS
WITH COMMON CARRIERS (APR 1984)
The Government shall pay the Contractor, in arrears, upon
submission of invoices for services and facilities furnished in
accordance with the terms of CSAs issued under this contract,
the rates and charges for the services and facilities as set forth
in the clause entitled “Rates, Charges and Services.”
(End of clause)
52.232-7 Payments under Time-and-Materials and
Labor-Hour Contracts.
As prescribed in 32.111(a)(7), insert the following clause:
PAYMENTS UNDER TIME-AND-MATERIALS AND LABORHOUR CONTRACTS (FEB 2007)
The Government will pay the Contractor as follows upon
the submission of vouchers approved by the Contracting
Officer or the authorized representative:
(a) Hourly rate. (1) Hourly rate means the rate(s) prescribed in the contract for payment for labor that meets the

52.232-7
labor category qualifications of a labor category specified in
the contract that are—
(i) Performed by the Contractor;
(ii) Performed by the subcontractors; or
(iii) Transferred between divisions, subsidiaries, or
affiliates of the Contractor under a common control.
(2) The amounts shall be computed by multiplying the
appropriate hourly rates prescribed in the Schedule by the
number of direct labor hours performed.
(3) The hourly rates shall be paid for all labor performed
on the contract that meets the labor qualifications specified in
the contract. Labor hours incurred to perform tasks for which
labor qualifications were specified in the contract will not be
paid to the extent the work is performed by employees that do
not meet the qualifications specified in the contract, unless
specifically authorized by the Contracting Officer.
(4) The hourly rates shall include wages, indirect costs,
general and administrative expense, and profit. Fractional
parts of an hour shall be payable on a prorated basis.
(5) Vouchers may be submitted once each month (or at
more frequent intervals, if approved by the Contracting
Officer), to the Contracting Officer or authorized representative. The Contractor shall substantiate vouchers (including
any subcontractor hours reimbursed at the hourly rate in the
schedule) by evidence of actual payment and by—
(i) Individual daily job timekeeping records;
(ii) Records that verify the employees meet the qualifications for the labor categories specified in the contract; or
(iii) Other substantiation approved by the Contracting Officer.
(6) Promptly after receipt of each substantiated voucher,
the Government shall, except as otherwise provided in this
contract, and subject to the terms of paragraph (e) of this
clause, pay the voucher as approved by the Contracting
Officer or authorized representative.
(7) Unless otherwise prescribed in the Schedule, the
Contracting Officer may unilaterally issue a contract modification requiring the Contractor to withhold amounts from its
billings until a reserve is set aside in an amount that the Contracting Officer considers necessary to protect the Government's interests. The Contracting Officer may require a
withhold of 5 percent of the amounts due under paragraph (a)
of this clause, but the total amount withheld for the contract
shall not exceed $50,000. The amounts withheld shall be
retained until the Contractor executes and delivers the release
required by paragraph (g) of this clause.
(8) Unless the Schedule prescribes otherwise, the
hourly rates in the Schedule shall not be varied by virtue of the
Contractor having performed work on an overtime basis. If no
overtime rates are provided in the Schedule and overtime
work is approved in advance by the Contracting Officer, overtime rates shall be negotiated. Failure to agree upon these
overtime rates shall be treated as a dispute under the Disputes
(FAC 2005–15 Addendum)

52.2-199