Overview
FAR 36.608 establishes the professional accountability of Architect-Engineer (A-E) firms, holding them liable for Government costs incurred due to errors, omissions, or deficiencies in their design services. It mandates that Contracting Officers evaluate A-E liability whenever design flaws necessitate modifications to subsequent construction contracts.
Key Rules
- Professional Responsibility: A-E contractors are strictly responsible for the professional quality, technical accuracy, and coordination of all services provided under the contract.
- Assessment Mandate: When a construction contract requires modification due to design errors, the Contracting Officer (CO) must consult with technical and legal staff to determine the extent of the A-E firm's liability.
- Recovery Threshold: The CO must issue a demand for payment if the recoverable costs exceed the administrative costs of processing the claim, or if recovery is deemed to be in the Government’s best interest.
- Documentation Requirement: The CO must include a written statement in the contract file justifying the decision to either pursue or forgo the recovery of costs from the A-E firm.
Practical Implications
- A-E firms face significant financial exposure if their designs lead to "Change Orders" during the construction phase, as the Government may seek to recoup the price difference and associated administrative costs.
- Contracting Officers must maintain a formal administrative record for design-related construction changes to ensure they are fulfilling their regulatory duty to protect the Government's financial interests.