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FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

FAR 52.216-9 Fixed Fee—Construction.

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 clause governs how the Government pays a fixed fee to a contractor under a cost-plus-fixed-fee construction contract. The fee is paid in installments based on approved completion estimates, but the Contracting Officer withholds a reserve to protect the Government's interest. The clause also sets conditions for releasing withheld fee amounts.

Applies to: Cost-plus-fixed-fee construction contracts

What it requires

  • Perform the contract for the fixed fee specified in the Schedule
  • Submit estimates of work completion to the Contracting Officer for approval
  • Submit an adequate certified final indirect cost rate proposal covering the year of physical completion
  • Submit final patent and royalty reports and final vouchers

Key terms: fixed fee · Schedule · percentage of completion · reserve · certified final indirect cost rate proposal

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

The text

As prescribed in 16.307(c), insert the following clause in solicitations and contracts when a cost-plus-fixed-fee construction contract is contemplated:

Fixed Fee—Construction (JUN 2011)

(a) The Government shall pay to the Contractor for performing this contract the fixed fee specified in the Schedule.

(b) Payment of the fixed fee shall be made in installments based upon the percentage of completion of the work as determined from estimates submitted to and approved by the Contracting Officer, but subject to the withholding provisions of paragraph (c) below.

(c) The Contracting Officer shall withhold a reserve not to exceed 15 percent of the total fixed fee or $100,000, whichever is less, to protect the Government's interest. The Contracting Officer shall release 75 percent of all fee withholds under this contract after receipt of an adequate certified final indirect cost rate proposal covering the year of physical completion of this contract, provided the Contractor has satisfied all other contract terms and conditions, including the submission of the final patent and royalty reports, and is not delinquent in submitting final vouchers on prior years' settlements. The Contracting Officer may release up to 90 percent of the fee withholds under this contract based on the Contractor's past performance related to the submission and settlement of final indirect cost rate proposals.

(End of clause)

Sections it refers to

Sections that refer to it

← 52.216-8 Fixed Fee. · 52.216-10 Incentive Fee. →

Rule changes for FAR Part 52

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

FAR 52.216-9 Fixed Fee—Construction · SpendQuery