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

FAR 49.112-2 Final payment.

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 how a contractor gets final payment after a settlement. The contractor must submit a voucher or invoice for the agreed or determined amount, minus anything already paid. It also says the Government generally does not pay interest on settlement amounts, except in certain appeal situations.

Applies to: Contractors receiving final payment under a settlement

What it requires

  • Submit a voucher or invoice showing the amount agreed upon, less any portion previously paid
  • If settlement is by determination and no appeal is filed, submit a voucher or invoice showing the amount determined due, less any portion previously paid
  • If there is an appeal, submit a voucher or invoice showing the amount finally determined due on the appeal, less any portion previously paid

Key terms: settlement agreement · settlement by determination · voucher · invoice · TCO

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

The text

(a) Negotiated settlement. After execution of a settlement agreement, the contractor shall submit a voucher or invoice showing the amount agreed upon, less any portion previously paid. The TCO shall attach a copy of the settlement agreement to the voucher or invoice and forward the documents to the disbursing officer for payment.

(b) Settlement by determination. If the settlement is by determination and—

(1) There is no appeal within the allowed time, the contractor shall submit a voucher or invoice showing the amount determined due, less any portion previously paid; or

(2) There is an appeal, the contractor shall submit a voucher or invoice showing the amount finally determined due on the appeal, less any portion previously paid. Pending determination of any appeal, the contractor may submit vouchers or invoices for charges that are not directly involved with the portion being appealed, without prejudice to the rights of either party on the appeal.

(c) Construction contracts. In the case of construction contracts, before forwarding the final payment voucher, the contracting officer shall ascertain whether there are any outstanding labor violations. If so, the contracting officer shall determine the amount to be withheld from the final payment (see subpart 22.4).

(d) Interest. The Government shall not pay interest on the amount due under a settlement agreement or a settlement by determination. The Government may, however, pay interest on a successful contractor appeal from a contracting officer's determination under the Disputes clause at 52.233-1.

Sections it refers to

← 49.112-1 Partial payments. · 49.113 Cost principles. →

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 49.112-2 Final payment · SpendQuery