FAR Part 36: Construction and Architect-engineer Contracts

In plain English

FAR Part 36 prescribes policies and procedures specific to construction and architect-engineer (A-E) contracts. It covers methods of contracting, evaluation of contractor performance, specifications, cost estimates, and required clauses. For small-business contractors, it matters because it dictates how these contracts are solicited, evaluated, and administered, including special rules for design-build and A-E selection.

Key rules

• The contracting officer must use sealed bidding for construction contracts when the conditions in FAR 6.401(a) apply, unless the work is outside the United States and its outlying areas. (36.103)
• An independent Government estimate of construction costs must be prepared and furnished to the contracting officer at the earliest practicable time for each proposed contract and for each anticipated contract modification. (36.203)
• Advance notices and solicitations must state the magnitude of the requirement in terms of physical characteristics and estimated price range, but must not disclose the Government's estimate. (36.204)
• Generally, firm-fixed-price contracts shall be used to acquire construction, and they may be priced on a lump-sum or unit-price basis. (36.207)
• No contract for the construction of a project shall be awarded to the firm that designed the project or its subsidiaries or affiliates, except with the approval of the head of the agency or authorized representative. (36.209)
• The contracting officer should arrange for prospective offerors to inspect the work site and examine available data concerning the project. (36.210)
• For architect-engineer services, the Government must publicly announce all requirements and negotiate contracts based on demonstrated competence and qualifications. (36.601-1)
• Agencies must evaluate architect-engineer firms based on criteria including professional qualifications, specialized experience, capacity, past performance, and location. (36.602-1)

Who does what

In practice

• When bidding on construction contracts, expect the Government to have an independent cost estimate and to state a price range in the solicitation, but not the exact estimate.
• For architect-engineer contracts, selection is based on qualifications and competence, not primarily on price, so emphasize your firm's experience and past performance.
• Be aware that you cannot design and construct the same project unless the agency head approves an exception.
• For larger projects, you must perform a significant portion of the work with your own forces, so plan your subcontracting accordingly.

Common pitfalls

• Do not assume you can both design and build a project; FAR 36.209 prohibits awarding a construction contract to the designer without agency head approval.
• Do not expect the Government to reveal its cost estimate; solicitations only disclose a price range (36.204).
• For architect-engineer contracts, do not focus solely on price; selection is based on qualifications and competence (36.601-1).
• Do not overlook the requirement to perform a significant part of the work with your own forces on larger projects (36.501).

Written by AI from this part's codified text (2026-10-04); cited sections are checked against the part. A guide, not legal advice: the regulation text, the solicitation and your contract rule.