FAR and DFARS › FAR Part 37: Service Contracting › Subpart 37.3
FAR 37.303 Payments.
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 addresses payment arrangements when a contract involves dismantling or demolishing structures. It lets the contract specify whether the Government pays the contractor for the work or the contractor pays the Government for the right to salvage and remove the resulting materials. It also requires the contracting officer to consider the usefulness of salvageable property and to designate property the Government wants to keep.
Applies to: Contracts involving dismantling or demolition of structures
What it requires
- The contracting officer shall consider the usefulness to the Government of all salvageable property.
- The contracting officer shall expressly designate in the contract any property more useful to the Government than its salvage value to the contractor, for retention by the Government.
- The contracting officer shall determine the fair market value of any property not designated for Government retention.
Key terms: dismantling · demolition · salvage · fair market value · retention
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) The contract may provide that the (1) Government pay the contractor for the dismantling or demolition of structures or (2) contractor pay the Government for the right to salvage and remove the materials resulting from the dismantling or demolition operation.
(b) The contracting officer shall consider the usefulness to the Government of all salvageable property. Any of the property that is more useful to the Government than its value as salvage to the contractor should be expressly designated in the contract for retention by the Government. The contracting officer shall determine the fair market value of any property not so designated, since the contractor will get title to this property, and its value will therefore be important in determining what payment, if any, shall be made to the contractor and whether additional compensation will be made if the contract is terminated.
← 37.302 Bonds or other security. · 37.304 Contract clauses. →
Rule changes for FAR Part 37
- Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 6, 7, 10, 18, 26, 37, and 41 ↗ · proposed 2026-06-23 · comments due 2026-07-23
- Federal Acquisition Regulation: Preventing Organizational Conflicts of Interest in Federal Acquisition ↗ · proposed 2025-01-15 · comments due 2025-03-17
- Federal Acquisition Regulation: Sustainable Procurement ↗ · final rule 2024-04-22 · effective 2024-05-22
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.