Overview
This section mandates the inclusion of a specific standard clause regarding permits and legal responsibilities in federal construction and demolition contracts. It ensures that the responsibility for regulatory compliance and site safety is clearly assigned to the contractor.
Key Rules
- Mandatory Clause: The Contracting Officer must insert FAR clause 52.236-7, Permits and Responsibilities, into applicable solicitations and contracts.
- Applicable Contract Types:
- Fixed-price construction contracts.
- Cost-reimbursement construction contracts.
- Fixed-price contracts for dismantling, demolition, or removal of improvements.
Practical Implications
- Risk Allocation: This shifts the burden to the contractor to obtain all necessary licenses and permits and to comply with all applicable federal, state, and municipal laws and regulations.
- Compliance Liability: Contractors are held responsible for all damages to persons or property that occur as a result of their fault or negligence during contract performance.