§49.109-2. Reservations.
48 C.F.R. § 49.109-2
The TCO shall—
Reserve in the settlement agreement any rights or demands of the parties that are excepted from the settlement;
Ensure that the wording of the reservation does not create any rights for the parties beyond those in existence before execution of the settlement agreement;
Mark each applicable settlement agreement with “This settlement agreement contains a reservation” and retain the contract file until the reservation is removed;
Ensure that sufficient funds are retained to cover complete settlement of the reserved items; and
At the appropriate time, prepare a separate settlement of reserved items and include it in a separate settlement agreement.
A recommended format for settlement of reservations appears in 49.603-9.
Notes, amendments, and revision history
Authority
Authority: 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 42447, Sept. 19, 1983, unless otherwise noted.