Overview
This section prescribes the mandatory or discretionary inclusion of FAR clause 52.236-3, which establishes the contractor's responsibility to investigate the project site and understand local conditions before submitting a bid.
Key Rules
- Mandatory Requirement: The Contracting Officer (CO) must include clause 52.236-3 in fixed-price construction or demolition contracts expected to exceed the simplified acquisition threshold.
- Discretionary Use: The CO has the option to include the clause in fixed-price construction or demolition contracts valued at or below the simplified acquisition threshold.
- Applicable Contract Types: The rule specifically applies to fixed-price contracts for construction, dismantling, demolition, or the removal of improvements.
Practical Implications
- Risk Allocation: This clause shifts the burden of due diligence to the contractor, making them responsible for costs associated with site conditions that could have been reasonably discovered during an inspection.
- Claim Prevention: Contractors who fail to perform a thorough site investigation generally lose the ability to claim additional compensation for "foreseeable" site difficulties or environmental factors.