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FAR and DFARS › DFARS Part 232: Contract Financing › Subpart 232.1

DFARS 232.102 Description of contract financing methods.

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 DFARS section limits when progress payments based on percentage or stage of completion can be used. They are only authorized for contracts involving construction, shipbuilding, and ship conversion, alteration, or repair. However, percentage or stage of completion methods may still be used to measure performance for performance-based payments under FAR Subpart 32.10.

Applies to: Contracts using progress payments based on percentage or stage of completion

Key terms: progress payments · percentage or stage of completion · construction · shipbuilding · performance-based payments

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

The text

(e)(2) Progress payments based on percentage or stage of completion are authorized only for contracts for construction (as defined in FAR 36.102), shipbuilding, and ship conversion, alteration, or repair. However, percentage or state of completion methods of measuring contractor performance may be used for performance-based payments in accordance with FAR Subpart 32.10.

Sections it refers to

← 232.072-3 Cash flow forecasts. · 232.102-70 Provisional delivery payments. →

Rule changes for DFARS Part 232

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

DFARS 232.102 Description of contract financing methods · SpendQuery