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FAR and DFARS › FAR Part 16: Types of Contracts › Subpart 16.6

FAR 16.602 Labor-hour contracts.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section defines a labor-hour contract as a type of time-and-materials contract where the contractor does not provide materials. It points to other sections for the rules on when and how these contracts can be used, including for certain commercial services.

Applies to: Government contractors and contracting officers using labor-hour contracts

Key terms: labor-hour contract · time-and-materials contract · commercial services

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

Description. A labor-hour contract is a variation of the time-and-materials contract, differing only in that materials are not supplied by the contractor. See 12.207(b), 16.601(c), and 16.601(d) for application and limitations, for time-and-materials contracts that also apply to labor-hour contracts. See 12.207(b) for the use of labor-hour contracts for certain commercial services.

Sections it refers to

← 16.601 Time-and-materials contracts. · 16.603 Letter contracts. →

Rule changes for FAR Part 16

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 16.602 Labor-hour contracts · SpendQuery