FAR and DFARS › FAR Part 32: Contract Financing › Subpart 32.5
FAR 32.501 General.
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 explains that progress payments can be either customary or unusual. Customary progress payments follow standard rates, cost bases, and payment frequencies in the Progress Payments clause, while unusual progress payments are only allowed in exceptional cases with proper authorization. Contractors should understand that deviating from the standard terms requires special approval.
Applies to: Government contractors receiving progress payments
Key terms: progress payments · customary progress payments · unusual progress payments · Progress Payments clause · liquidation method
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
Progress payments may be customary or unusual. Customary progress payments are those made under the general guidance in this subpart, using the customary progress payment rate, the cost base, and frequency of payment established in the Progress Payments clause, and either the ordinary liquidation method or the alternate method as provided in subsections 32.503-8 and 32.503-9. Any other progress payments are considered unusual, and may be used only in exceptional cases when authorized in accordance with subsection 32.501-2.
Sections it refers to
Sections that refer to it
- 215.404-71-3 Contract type risk and working capital adjustment.
← 32.500 Scope of subpart. · 32.501-1 Customary progress payment rates. →
Rule changes for FAR Part 32
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · final rule 2025-08-27 · effective 2025-10-01
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2025-08-07 · effective 2025-08-07
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · proposed 2024-11-29 · comments due 2025-01-28
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.