---
kind: "section"
citation: "48 C.F.R. § 36.207"
title: "48"
number: "36.207"
heading: "Pricing fixed-price construction contracts."
url: "https://uscodex.org/cfr/48/36.207"
---

# §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.

## Notes

### 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.