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FAR and DFARS › FAR Part 49: Termination of Contracts › Subpart 49.1

FAR 49.108-1 Subcontractor's rights.

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 states that a subcontractor has no contractual rights against the Government when a prime contract is terminated. Any rights a subcontractor may have are against the prime contractor or intermediate subcontractor it contracted with. It also requires the prime contractor and each subcontractor to promptly settle the settlement proposals of their immediate subcontractors.

Applies to: Subcontractors and prime contractors upon termination of a prime contract

What it requires

  • Prime contractor and each subcontractor must promptly settle the settlement proposals of their immediate subcontractors.

Key terms: subcontractor · prime contract · termination · settlement proposals · immediate subcontractor

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

The text

A subcontractor has no contractual rights against the Government upon the termination of a prime contract. A subcontractor may have rights against the prime contractor or intermediate subcontractor with whom it has contracted. Upon termination of a prime contract, the prime contractor and each subcontractor are responsible for the prompt settlement of the settlement proposals of their immediate subcontractors.

← 49.108 Settlement of subcontract settlement proposals. · 49.108-2 Prime contractor's rights and obligations. →

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 49.108-1 Subcontractor's rights · SpendQuery