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                            36.207 Pricing fixed-price construction contracts.
        
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FAC Number: 2024-03 Effective Date: 02/23/2024
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Subpart36.036.136.236.336.536.636.7
Section36.20136.20236.20336.20436.20536.20636.20736.20836.20936.21036.21136.21236.21336.21436.215
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36.207 Pricing fixed-price construction contracts.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.    **Parent topic:**  Subpart 36.2 - Special Aspects of Contracting for Construction
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