§36.207. Pricing fixed-price construction contracts.
48 C.F.R. § 36.207
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.
Lump-sum pricing shall be used in preference to unit pricing except when—
Large quantities of work such as grading, paving, building outside utilities, or site preparation are involved;
Quantities of work, such as excavation, cannot be estimated with sufficient confidence to permit a lump-sum offer without a substantial contingency;
Estimated quantities of work required may change significantly during construction; or
Offerors would have to expend unusual effort to develop adequate estimates.
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.
Notes, amendments, and revision history
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 42356, Sept. 19, 1983, unless otherwise noted.