FAR and DFARS › FAR Part 49: Termination of Contracts

FAR 49.001 Definitions.

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 defines key terms used in FAR Part 49, which governs termination of government contracts. It matters because these definitions determine how termination settlements, plant clearance periods, and related contractor obligations are interpreted.

Applies to: Contractors and contracting officers involved in terminated government contracts

Key terms: Other work · Plant clearance period · Settlement agreement · Settlement proposal · Unsettled contract change

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

The text

As used in this part—

Other work means any current or scheduled work of the contractor, whether Government or commercial, other than work related to the terminated contract.

Plant clearance period, as used in this subpart, means the period beginning on the effective date of contract completion or termination and ending 90 days (or such longer period as may be agreed to) after receipt by the contracting officer of acceptable inventory schedules for each property classification. The final phase of the plant clearance period means that period after receipt of acceptable inventory schedules.

Settlement agreement means a written agreement in the form of a contract modification settling all or a severable portion of a settlement proposal.

Settlement proposal means a proposal for effecting settlement of a contract terminated in whole or in part, submitted by a contractor or subcontractor in the form, and supported by the data, required by this part. A settlement proposal is included within the generic meaning of the word claim under false claims acts (see 18 U.S.C. 287 and 31 U.S.C. 3729).

Unsettled contract change means any contract change or contract term for which a definitive modification is required but has not been executed.

Sections that refer to it

  • 52.249-2 Termination for Convenience of the Government (Fixed-Price).
  • 52.249-3 Termination for Convenience of the Government (Dismantling, Demolition, or Removal of Improvements).
  • 52.249-6 Termination (Cost-Reimbursement).

← 49.000 Scope of part. · 49.002 Applicability. →

Rule changes for FAR Part 49

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

FAR 49.001 Definitions · SpendQuery