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

FAR 52.237-5 Payment by Contractor to Government.

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 applies when a contractor dismantles, demolishes, or removes improvements and receives title to the resulting property while owing the Government a net payment. It requires the contractor to pay the Government the specified amount and to remove all acquired property from the site, unless the contracting officer grants permission to leave it. The Government is not responsible for the condition of, or any loss or damage to, the property after title transfers.

Applies to: Contractors under solicitations and contracts for dismantling, demolition, or removal of improvements where the contractor receives title to the property and a net amount is due to the Government.

What it requires

  • Receive title to all property to be dismantled, demolished, or removed, except property designated in the Schedule as retained by the Government.
  • Promptly remove from the site all property acquired by the Contractor.
  • Pay the Government the amount specified in the contract within the number of days stated after receipt of notice of award, unless otherwise provided in the Schedule and before proceeding with the work.
  • If granted permission to leave property on the premises, waive any right, title, claim, or interest in and to the property.

Key terms: dismantling · demolition · removal of improvements · title · net amount of compensation

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

The text

As prescribed in 37.304(b), insert the following clause in solicitations and contracts for dismantling, demolition, or removal of improvements whenever the contractor is to receive title to dismantled or demolished property and a net amount of compensation is due to the Government, except if the contracting officer determines that it would be advantageous to the Government for the contractor to pay in increments and the Government to transfer title to the contractor for increments of property only upon receipt of those payments:

Payment by Contractor to Government (APR 1984)

(a) The Contractor shall receive title to all property to be dismantled, demolished, or removed under this contract and not specifically designated in the Schedule as being retained by the Government. The title shall vest in the Contractor immediately upon the Government's issuing the notice of award, or if a performance bond is to be furnished, upon the Government's issuing a notice to proceed with the work. The Government shall not be responsible for the condition of, or any loss or damage to, the property.

(b) The Contractor shall promptly remove from the site all property acquired by the Contractor. The Government shall not permit storage of property on the site beyond the completion date. If the Contractor does not wish to remove from the site any of the property acquired, the Contracting Officer may, upon written request, grant the Contractor permission to leave the property on the premises. As a condition of the granting of the permission, the Contractor agrees to waive any right, title, claim, or interest in and to the property.

(c) The Contractor shall perform the work called for under this contract and within __ days of receipt of notice of award, unless otherwise provided in the Schedule and before proceeding with the work, shall pay ____ [fill in amount]. Checks shall be made payable to the office designated in the contract and shall be forwarded to the Contracting Officer.

(End of clause)

Sections it refers to

Sections that refer to it

← 52.237-4 Payment by Government to Contractor. · 52.237-6 Incremental Payment by Contractor to Government. →

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 52.237-5 Payment by Contractor to Government · SpendQuery