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FAR and DFARS › FAR Part 4: Administrative and Information Matters › Subpart 4.8

FAR 4.804-4 Physically completed contracts.

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 when a contract is considered physically completed. For most contracts, that happens once the contractor has made all required deliveries or performed all services, the Government has inspected and accepted them, and any option periods have expired. It matters because physical completion is a milestone that affects how a contract is closed out.

Applies to: Government contracts, including rental, use, and storage agreements

Key terms: physically completed · notice of complete contract termination · option provisions · rental, use, and storage agreements

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

The text

(a) Except as provided in paragraph (b) of this section, a contract is considered to be physically completed when—

(1)(i) The contractor has completed the required deliveries and the Government has inspected and accepted the supplies;

(ii) The contractor has performed all services and the Government has accepted these services; and

(iii) All option provisions, if any, have expired; or

(2) The Government has given the contractor a notice of complete contract termination.

(b) Rental, use, and storage agreements are considered to be physically completed when—

(1) The Government has given the contractor a notice of complete contract termination; or

(2) The contract period has expired.

Sections that refer to it

← 4.804-3 Closeout of paying office contract files. · 4.804-5 Procedures for closing out contract files. →

Rule changes for FAR Part 4

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

FAR 4.804-4 Physically completed contracts · SpendQuery