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FAR and DFARS › FAR Part 31: Contract Cost Principles and Procedures › Subpart 31.2

FAR 31.205-31 Plant reconversion costs.

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 says that costs to restore or rehabilitate a contractor's facilities back to their pre-contract condition are generally unallowable, except for costs of removing Government property and any restoration caused by that removal. Additional costs may be allowed only in special circumstances, and only to the extent agreed upon before the costs are incurred.

Applies to: Contractors incurring plant reconversion costs under Government contracts

What it requires

  • Obtain agreement on any additional reconversion costs before those costs are incurred
  • Avoid duplication of these costs through contingencies, additional profit or fee, or other contracts

Key terms: Plant reconversion costs · fair wear and tear · Government property · unallowable · contingencies

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

The text

Plant reconversion costs are those incurred in restoring or rehabilitating the contractor's facilities to approximately the same condition existing immediately before the start of the Government contract, fair wear and tear excepted. Reconversion costs are unallowable except for the cost of removing Government property and the restoration or rehabilitation costs caused by such removal. However, in special circumstances where equity so dictates, additional costs may be allowed to the extent agreed upon before costs are incurred. Care should be exercised to avoid duplication through allowance as contingencies, additional profit or fee, or in other contracts.

← 31.205-30 Patent costs. · 31.205-32 Precontract costs. →

Rule changes for FAR Part 31

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

FAR 31.205-31 Plant reconversion costs · SpendQuery