C.F.R. » Title 48 » CHAPTER 1—FEDERAL ACQUISITION REGULATION › SUBCHAPTER F—SPECIAL CATEGORIES OF CONTRACTING › PART 36—CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS › Subpart 36.2—Special Aspects of Contracting for Construction

48 C.F.R. § 36.207

36.207 Pricing fixed-price construction contracts.

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(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 of Decisions
Cited in 2 cases, 1998–2000 · leading case: PCL Constr. Servs., Inc. v. United States, 47 Fed. Cl. 745 (Fed. Cl. 2000).
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PCL Constr. Servs., Inc. v. United States, 47 Fed. Cl. 745 (Fed. Cl. 2000). “48 C.F.R. § 36.207 (a) (1990). Moreover, with regard to the award of a firm-fixed-price contract for the “Boulder Canyon Project,” plaintiff failed to raise its objections prior to award of the contract, despite an opportunity to do so.”
PCL Constr. Servs., Inc. v. United States, 41 Fed. Cl. 242 (Fed. Cl. 1998). “48 C.F.R. § 36.207 (a) (1990). Moreover, with regard to the award of a firm-fixed-price contract for the “Boulder Canyon Project,” plaintiff failed to raise its objections prior to award of the contract, despite an opportunity to do so.”
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