---
kind: "section"
citation: "48 C.F.R. § 32.503-12"
title: "48"
number: "32.503-12"
heading: "Maximum unliquidated amount."
url: "https://uscodex.org/cfr/48/32.503-12"
---

# §32.503-12. Maximum unliquidated amount.

- (a) The contracting officer shall ensure that any excess of the unliquidated progress payments over the contractual limitation in [paragraph (a)](#a) of the Progress Payments clause in the contract is promptly corrected through one or more of the following actions:
  - (1) **Increasing the liquidation rate.**
  - (2) **Reducing the progress payment rate.**
  - (3) **Suspending progress payments.**
- (b) **The excess described in paragraph (a) above is most likely to arise under the following circumstances—**
  - (1) **The costs of performance exceed the contract price.**
  - (2) The alternate method of liquidation (see 32.503-9) is used and the actual costs of performance exceed the cost estimates used to establish the liquidation rate.
  - (3) **The rate of progress or the quality of contract performance is unsatisfactory.**
  - (4) **The rate of rejections, waste, or spoilage is excessive.**
- (c) As required, the services of the responsible audit agency or office should be fully utilized, along with the services of qualified cost analysis and engineering personnel.

## Notes

### Amendments

[48 FR 42328, Sept. 19, 1983, as amended at 63 FR 9061, Feb. 23, 1998]

### Authority

Authority: 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 48 FR 42328, Sept. 19, 1983, unless otherwise noted.

### Amendments

[48 FR 42328, Sept. 19, 1983, as amended at 63 FR 9061, Feb. 23, 1998]