FAR and DFARS › FAR Part 49: Termination of Contracts › Subpart 49.4
FAR 49.402-7 Other damages.
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 the contracting officer to promptly assess and demand liquidated damages when a contract is terminated for default, or when the officer takes an alternative course of action instead of termination. It also requires the officer to pursue any other ascertainable damages the Government suffered from the default, including administrative costs, based on legal advice. For contractors, this means a default can lead to financial demands beyond just losing the contract.
Applies to: Contracting officers handling terminations for default and contractors who have defaulted
What it requires
- Promptly assess and demand any liquidated damages the Government is entitled to under the contract
- Take appropriate action under subpart 32.6, based on legal advice, to assert the Government's demand for other ascertainable damages, including administrative costs
Key terms: liquidated damages · termination for default · excess repurchase costs · ascertainable damages · administrative costs
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) If the contracting officer terminates a contract for default or follows a course of action instead of termination for default (see 49.402-4), the contracting officer promptly must assess and demand any liquidated damages to which the Government is entitled under the contract. Under the contract clause at 52.211-11, these damages are in addition to any excess repurchase costs.
(b) If the Government has suffered any other ascertainable damages, including administrative costs, as a result of the contractor's default, the contracting officer must, on the basis of legal advice, take appropriate action as prescribed in subpart 32.6 to assert the Government's demand for the damages.
Sections it refers to
← 49.402-6 Repurchase against contractor's account. · 49.402-8 Reporting information. →
Rule changes for FAR Part 49
- Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 3 and 49 ↗ · proposed 2026-06-23 · comments due 2026-07-23
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2024-12-16 · effective 2025-01-03
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.