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

FAR 52.232-9 Limitation on Withholding of Payments.

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 limits how much a contractor can have withheld from payments when multiple contract terms allow temporary withholding. The total withheld at any one time cannot exceed the largest amount allowed under any single term, except for certain withholdings like wage/hour issues, overpayments, or those not specified in the contract.

Applies to: Supply, service, time-and-materials, labor-hour, or research and development contracts that include two or more terms authorizing temporary withholding of payments.

Key terms: temporary withholding · Contracting Officer · overpayments · wages or hours of employees

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

The text

As prescribed in 32.111(b)(2), insert a clause substantially as follows, appropriately modified with respect to payment due dates in accordance with agency regulations, in solicitations and contracts when a supply contract, service contract, time-and-materials contract, labor-hour contract, or research and development contract is contemplated that includes two or more terms authorizing the temporary withholding of amounts otherwise payable to the contractor for supplies delivered or services performed:

Limitation on Withholding of Payments (APR 1984)

If more than one clause or Schedule term of this contract authorizes the temporary withholding of amounts otherwise payable to the Contractor for supplies delivered or services performed, the total of the amounts withheld at any one time shall not exceed the greatest amount that may be withheld under any one clause or Schedule term at that time; provided, that this limitation shall not apply to—

(a) Withholdings pursuant to any clause relating to wages or hours of employees;

(b) Withholdings not specifically provided for by this contract;

(c) The recovery of overpayments; and

(d) Any other withholding for which the Contracting Officer determines that this limitation is inappropriate.

(End of clause)

Sections it refers to

  • 32.111 Contract clauses for noncommercial purchases.

Sections that refer to it

  • 32.111 Contract clauses for noncommercial purchases.

← 52.232-8 Discounts for Prompt Payment. · 52.232-10 Payments Under Fixed-Price Architect-Engineer Contracts. →

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 52.232-9 Limitation on Withholding of Payments · SpendQuery