FAR and DFARS › FAR Part 36: Construction and Architect-engineer Contracts › Subpart 36.1

FAR 36.104 Policy.

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 sets policy for construction contracting. It tells contracting officers when to use two-phase design-build selection, requires agencies to apply sustainable building practices, and requires project labor agreements on large Federal construction projects. It matters because it affects how construction contracts are structured and what labor and sustainability requirements contractors may face.

Applies to: Agencies and contracting officers awarding Federal construction, design, and renovation contracts

What it requires

  • Use two-phase selection procedures when entering into a design and construction contract if the contracting officer determines they are appropriate, unless another authorized procedure is used
  • Implement high-performance sustainable building design, construction, renovation, repair, commissioning, operation, maintenance, management, and deconstruction practices
  • Design, construct, and maintain new construction and modernization projects greater than 25,000 gross square feet to meet and, where practicable, exceed Federal sustainable design and operations principles
  • Use Federal sustainable design and operations principles for existing buildings in renovation projects to the greatest extent technically feasible and practicable

Key terms: design-bid-build · two-phase selection procedures · design-build · project labor agreement · Guiding Principles

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

The text

(a) Unless the traditional acquisition approach of design-bid-build established under 40 U.S.C. chapter 11, Selection of Architects and Engineers, or another acquisition procedure authorized by law is used, the contracting officer shall use the two-phase selection procedures authorized by 10 U.S.C. 3241 or 41 U.S.C. 3309 when entering into a contract for the design and construction of a public building, facility, or work, if the contracting officer makes a determination that the procedures are appropriate for use (see subpart 36.3). Other acquisition procedures authorized by law include the procedures established in this part and other parts of this chapter and, for DoD, the design-build process described in 10 U.S.C. 2862.

(b) Agencies shall implement high-performance sustainable building design, construction, renovation, repair, commissioning, operation and maintenance, management, and deconstruction practices so as to—

(1) Ensure that—

(i) All new construction and modernization projects greater than 25,000 gross square feet are designed, constructed, and maintained to meet and, wherever practicable, exceed Federal sustainable design and operations principles for new construction and modernization projects in accordance with the Council on Environmental Quality's Guiding Principles for Sustainable Federal Buildings and Associated Instructions (Guiding Principles) (available at https://www.sustainability.gov/pdfs/guiding_principles_for_sustainable_federal_buildings.pdf); and

(ii) All renovation projects of existing Federal buildings must use, to the greatest extent technically feasible and practicable, Federal sustainable design and operations principles for existing buildings in accordance with the Guiding Principles;

(2) Identify alternatives to renovation that reduce existing assets' deferred maintenance costs;

(3) Ensure that rehabilitation of Federally-owned historic buildings utilizes best practices and technologies in retrofitting to promote long-term viability of the buildings; and

(4) Ensure pollution prevention and eliminate waste by diverting at least 50 percent of non-hazardous construction and demolition materials and debris.

(c)(1) Agencies shall require the use of a project labor agreement for Federal construction projects with a total estimated construction cost at or above $35 million, unless an exception applies (see subpart 22.5).

(2) Contracting officers conducting market research for Federal construction contracts, valued at or above the threshold in paragraph (c)(1) of this section, shall ensure that the procedures at 10.002(b)(1) involve a current and proactive examination of the market conditions in the project area to determine national, regional, and local entity interest in participating on a project that requires a project labor agreement, and to understand the availability of unions, and unionized and non-unionized contractors. Contracting officers may coordinate with agency labor advisors, as appropriate.

Sections it refers to

Sections that refer to it

  • 5.207 Preparation and transmittal of synopses.
  • 7.103 Agency-head responsibilities.
  • 17.803 Applicability.
  • 22.504 General requirements for project labor agreements.

← 36.103 Methods of contracting. · 36.201 Evaluation of contractor performance. →

Rule changes for FAR Part 36

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

FAR 36.104 Policy · SpendQuery