FAR Basics Every Construction Contractor Should Know

The Federal Acquisition Regulation (FAR) is the rulebook for federal buying. You do not need to memorize it, but some of its concepts shape every construction contract.

Key ideas

• Contract types — firm-fixed-price is the most common for construction; cost-reimbursement and time-and-materials appear when scope is less certain.
• Changes clause — lets the government direct changes and sets how you seek an equitable adjustment.
• Differing site conditions — allocates risk when site conditions differ materially from what the contract showed.
• Payment and prompt payment — sets when the government must pay proper invoices.
• Termination for convenience — the government may end the contract for its convenience, with an entitlement to cost and certain profit.

What to do with it

Read the clauses incorporated in your contract, especially those in Section I. Note notice requirements: many rights depend on you notifying the contracting officer in writing within a set number of days. Miss the notice and you can lose the claim even when you are right.

General information for construction small businesses, not legal advice.