FAR and DFARS › FAR Part 46: Quality Assurance › Subpart 46.7
FAR 46.705 Limitations.
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 limits when contracting officers may include warranties in cost-reimbursement contracts, generally prohibiting them except for two specific inspection clauses or when agency regulations authorize them. It also requires that warranty clauses preserve the Government's rights regarding latent defects, fraud, or gross mistakes amounting to fraud, and that warranties apply despite inspection and acceptance. For contractors, this means warranty terms in cost-reimbursement contracts are restricted and cannot override the Government's inspection rights.
Applies to: Contracting officers and contractors under cost-reimbursement contracts
What it requires
- Contracting officers shall not include warranties in cost-reimbursement contracts unless authorized by agency regulations, except for the warranties in clauses 52.246-3 and 52.246-8.
- Warranty clauses shall not limit the Government's rights under an inspection clause in relation to latent defects, fraud, or gross mistakes that amount to fraud.
- Warranty clauses shall provide that the warranty applies notwithstanding inspection and acceptance or other clauses or terms of the contract, except for warranty clauses in construction contracts.
Key terms: warranties · cost-reimbursement contracts · latent defects · fraud · inspection and acceptance
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) Except for the warranties in the clauses at 52.246-3, Inspection of Supplies—Cost-Reimbursement, and 52.246-8, Inspection of Research and Development—Cost-Reimbursement, the contracting officer shall not include warranties in cost-reimbursement contracts, unless authorized in accordance with agency regulations (see 46.708).
(b) Warranty clauses shall not limit the Government's rights under an inspection clause (see subpart 46.3) in relation to latent defects, fraud, or gross mistakes that amount to fraud.
(c) Except for warranty clauses in construction contracts, warranty clauses shall provide that the warranty applies notwithstanding inspection and acceptance or other clauses or terms of the contract.
Sections it refers to
← 46.704 Authority for use of warranties. · 46.706 Warranty terms and conditions. →
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.