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FAR and DFARS › FAR Part 36: Construction and Architect-engineer Contracts › Subpart 36.2

FAR 36.214 Special procedures for price negotiation in construction contracting.

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 tells agencies how to negotiate prices for construction contracts, generally following the rules in Part 15. The contracting officer must compare proposals and their cost data to the Government estimate, and must resolve significant differences or unusually low proposed prices. It also allows additional pricing tools, such as comparing to current prices for similar work or using rough yardsticks.

Applies to: Agencies and contracting officers negotiating prices for construction contracts

What it requires

  • Follow the policies and procedures in part 15 when negotiating prices for construction.
  • Evaluate proposals and associated certified cost or pricing data and data other than certified cost or pricing data and compare them to the Government estimate.
  • When a proposed price is significantly lower than the Government estimate, make sure both the offeror and the Government estimator completely understand the scope of the work.
  • If negotiations reveal errors in the Government estimate, correct the estimate and document the changes in the contract file.

Key terms: certified cost or pricing data · data other than certified cost or pricing data · Government estimate · offeror · contracting officer

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

The text

(a) Agencies shall follow the policies and procedures in part 15 when negotiating prices for construction.

(b) The contracting officer shall evaluate proposals and associated certified cost or pricing data and data other than certified cost or pricing data and shall compare them to the Government estimate.

(1) When submission of certified cost or pricing data is not required (see 15.403-1 and 15.403-2), and any element of proposed cost differs significantly from the Government estimate, the contracting officer should request the offeror to submit cost information concerning that element (e.g., wage rates or fringe benefits, significant materials, equipment allowances, and subcontractor costs).

(2) When a proposed price is significantly lower than the Government estimate, the contracting officer shall make sure both the offeror and the Government estimator completely understand the scope of the work. If negotiations reveal errors in the Government estimate, the estimate shall be corrected and the changes shall be documented in the contract file.

(c) When appropriate, additional pricing tools may be used. For example, proposed prices may be compared to current prices for similar types of work, adjusted for differences in the work site and the specifications. Also, rough yardsticks may be developed and used, such as cost per cubic foot for structures, cost per linear foot for utilities, and cost per cubic yard for excavation or concrete.

Sections it refers to

  • 15.403-1 Prohibition on obtaining certified cost or pricing data (10 U.S.C. chapter 271 and 41 U.S.C. chapter 35).
  • 15.403-2 Other circumstances where certified cost or pricing data are not required.

← 36.213-4 Notice of award. · 36.215 Special procedures for cost-reimbursement contracts for construction. →

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 36.214 Special procedures for price negotiation in construction contracting · SpendQuery