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

FAR 52.236-22 Design Within Funding Limitations.

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 requires the contractor to design the project so that construction can be awarded within the estimated construction contract price stated in the contract. If bids or proposals come in over that price, the contractor must redesign and perform other needed services at no increase in contract price, unless the overage results from conditions beyond its reasonable control. The contractor must also promptly notify the Contracting Officer if the design will or is likely to exceed the funding limitations.

Applies to: Contractors performing design services under this contract

What it requires

  • Accomplish the design services so construction can be awarded at a price not exceeding the estimated construction contract price in paragraph (c)
  • Perform redesign and other necessary services at no increase in contract price when bids or proposals exceed the estimated price, unless the unfavorable bids or proposals result from conditions beyond the contractor's reasonable control
  • Promptly advise the Contracting Officer if the project will exceed or is likely to exceed the funding limitations and the contractor cannot design a usable facility within them

Key terms: estimated construction contract price · funding limitation · redesign · change in scope or materials · bids or proposals

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

The text

As prescribed in 36.609-1(c), insert the following clause:

Design Within Funding Limitations (APR 1984)

(a) The Contractor shall accomplish the design services required under this contract so as to permit the award of a contract, using standard Federal Acquisition Regulation procedures for the construction of the facilities designed at a price that does not exceed the estimated construction contract price as set forth in paragraph (c) below. When bids or proposals for the construction contract are received that exceed the estimated price, the contractor shall perform such redesign and other services as are necessary to permit contract award within the funding limitation. These additional services shall be performed at no increase in the price of this contract. However, the Contractor shall not be required to perform such additional services at no cost to the Government if the unfavorable bids or proposals are the result of conditions beyond its reasonable control.

(b) The Contractor will promptly advise the Contracting Officer if it finds that the project being designed will exceed or is likely to exceed the funding limitations and it is unable to design a usable facility within these limitations. Upon receipt of such information, the Contracting Officer will review the Contractor's revised estimate of construction cost. The Government may, if it determines that the estimated construction contract price set forth in this contract is so low that award of a construction contract not in excess of such estimate is improbable, authorize a change in scope or materials as required to reduce the estimated construction cost to an amount within the estimated construction contract price set forth in paragraph (c) below, or the Government may adjust such estimated construction contract price. When bids or proposals are not solicited or are unreasonably delayed, the Government shall prepare an estimate of constructing the design submitted and such estimate shall be used in lieu of bids or proposals to determine compliance with the funding limitation.

(c) The estimated construction contract price for the project described in this contract is $____.

(End of clause)

Sections it refers to

  • 36.609-1 Design within funding limitations.

Sections that refer to it

  • 36.609-1 Design within funding limitations.

← 52.236-21 Specifications and Drawings for Construction. · 52.236-23 Responsibility of the Architect-Engineer Contractor. →

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 52.236-22 Design Within Funding Limitations · SpendQuery