---
kind: "section"
citation: "48 C.F.R. § 32.601"
title: "48"
number: "32.601"
heading: "General."
url: "https://uscodex.org/cfr/48/32.601"
---

# §32.601. General.

- (a) **Contract debts are amounts that—**
  - (1) Have been paid to a contractor to which the contractor is not currently entitled under the terms and conditions of the contract; or
  - (2) **Are otherwise due from the contractor under the terms and conditions of the contract.**
- (b) **Contract debts include, but are not limited to, the following—**
  - (1) Billing and price reductions resulting from contract terms for price redetermination or for determination of prices under incentive type contracts.
  - (2) **Price or cost reductions for defective certified cost or pricing data.**
  - (3) Financing payments determined to be in excess of the contract limitations at 52.232-16(a)(7), Progress Payments, or 52.232-32(d)(2), Performance—Based Payments, or any contract clause for financing of commercial products or commercial services.
  - (4) **Increases to financing payment liquidation rates.**
  - (5) Overpayments disclosed by quarterly statements required under price redetermination or incentive contracts.
  - (6) Price adjustments resulting from Cost Accounting Standards (CAS) noncompliances or changes in cost accounting practice.
  - (7) **Reinspection costs for nonconforming supplies or services.**
  - (8) **Duplicate or erroneous payments.**
  - (9) **Damages or excess costs related to defaults in performance.**
  - (10) Breach of contract obligations concerning progress payments, performance-based payments, advance payments, financing of commercial products or commercial services, or Government-furnished property.
  - (11) **Government expense of correcting defects.**
  - (12) **Overpayments related to errors in quantity or billing or deficiencies in quality.**
  - (13) Delinquency in contractor payments due under agreements or arrangements for deferral or postponement of collections.
  - (14) Reimbursement of amounts due under 33.102(b)(3) and 33.104(h)(8).

## Notes

### Amendments

[73 FR 54002, Sept. 17, 2008, as amended at 75 FR 53149, Aug. 30, 2010; 86 FR 61030, Nov. 4, 2021]

### Source

Source: 73 FR 54002, Sept. 17, 2008, unless otherwise noted.

### 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

[73 FR 54002, Sept. 17, 2008, as amended at 75 FR 53149, Aug. 30, 2010; 86 FR 61030, Nov. 4, 2021]