FAR and DFARS › FAR Part 48: Value Engineering › Subpart 48.2
FAR 48.202 Clause for construction 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 tells contracting officers when to put the Value Engineering—Construction clause (52.248-3) into construction solicitations and contracts. It matters to contractors because it determines whether their construction contract will include value engineering requirements and possible savings-sharing. The clause is generally required above the simplified acquisition threshold, but not in incentive-type contracts.
Applies to: Construction solicitations and contracts
Key terms: Value Engineering—Construction · simplified acquisition threshold · incentive contract · collateral savings · Alternate I
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
The contracting officer shall insert the clause at 52.248-3, Value Engineering—Construction, in construction solicitations and contracts when the contract amount is estimated to exceed the simplified acquisition threshold, unless an incentive contract is contemplated. The contracting officer may include the clause in contracts of lesser value if the contracting officer sees a potential for significant savings. The contracting officer shall not include the clause in incentive-type construction contracts. If the head of the contracting activity determines that the cost of computing and tracking collateral savings for a contract will exceed the benefits to be derived, the contracting officer shall use the clause with its Alternate I.
Sections it refers to
- 52.248-3 Value Engineering—Construction.
← 48.201 Clauses for supply or service contracts.
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.