52.237-4 Payment by Government to

Contractor.

As prescribed in 37.304(a), insert the following clause in solicitations and contracts solely for

dismantling, demolition, or removal of improvements whenever the contracting officer determines

that the Government shall make payment to the contractor in addition to any title to property that

the contractor may receive under the contract:

Payment by Government to Contractor (Apr 1984)

(a) In ______ [insert "full" if Alternate I is used; otherwise insert "partial"] consideration of the

performance of the work called for in the Schedule, the Government will pay to the Contractor

______________ [fill in amount].

(b) The Government shall make progress payments monthly as the work proceeds, or at more

frequent intervals as determined by the Contracting Officer, on estimates approved by the

Contracting Officer. Except as provided in paragraph (c) of this clause, in making progress payments

the Contracting Officer shall retain 10 percent of the estimated payment until final completion and

acceptance of the contract work. However, if the Contracting Officer finds that satisfactory progress

was achieved during any period for which a progress payment is to be made, the Contracting Officer

may authorize such payment in full, without retaining a percentage. Also, on completion and

acceptance of each unit or division for which the price is stated separately, the Contracting Officer

may authorize full payment for that unit or division without retaining a percentage.

(c) When the work is substantially completed, the Contracting Officer shall retain an amount

considered adequate for the protection of the Government and, at the Contracting Officer’s

discretion, may release all or a portion of any excess amount.

(d) In further consideration of performance, the Contractor shall receive title to all property to be

dismantled or demolished that is not specifically designated as being retained by the Government.

The title shall vest in the Contractor immediately upon the Government’s issuing the notice of

award, or if a performance bond is to be furnished after award, upon the Government’s issuance of a

notice to proceed with the work. The Government shall not be responsible for the condition of, or

any loss or damage to, the property. If the Contractor does not wish to remove from the site any of

the property acquired, the Contracting Officer may, upon written request, grant the Contractor

permission to leave the property on the premises. As a condition to the granting of this permission,

the Contractor agrees to waive any right, title, claim, or interest in and to the property.

(e) Upon completion and acceptance of all work and receipt of a properly executed voucher, the

Government shall make final payment of the amount due the Contractor under this contract. If

requested, the Contractor shall release all claims against the Government arising under this

contract, other than any claims the Contractor specifically excepts, in stated amounts, from

operation of this release.

(End of clause)

Alternate I (Apr 1984). If the contracting officer determines that the Government shall retain all

material resulting from the dismantling or demolition work, delete paragraph (d) from the basic
clause and renumber the remaining paragraphs.

Parent topic: 52.237 [Reserved]