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

FAR 52.237-6 Incremental 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 is taking title to dismantled, demolished, or removed property and owes the Government a net payment. It lets the contractor pay in increments, receiving title to portions of the property as each payment is received, with full title vesting after the final payment. It also requires the contractor to remove the property promptly and limits Government responsibility for the property's condition.

Applies to: Contractors under solicitations and contracts for dismantling, demolition, or removal of improvements who will receive title to property and owe the Government a net amount

What it requires

  • Pay the specified amount within the stated days of notice of award, before proceeding with work, unless the Schedule provides otherwise
  • Make payments in the amount and frequency specified in the Schedule
  • Make checks payable to the designated office and forward them to the Contracting Officer
  • Promptly remove from the site all property acquired by the Contractor

Key terms: increment of payment · title · Schedule · Contracting Officer · 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(c), insert the following clause in solicitations and contracts for dismantling, demolition, or removal of improvements (a) if the contractor is to receive title to dismantled or demolished property and a net amount of compensation is due the Government, and (b) if the contracting officer determines that it would be advantageous to the Government for the contractor to pay in increments, and for the Government to transfer title to the contractor for increments of property, only upon receipt of those payments:

Incremental Payment by Contractor to Government (APR 1984)

(a) 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]. Thereafter, the Contractor shall make payment to the Government in the amount and frequency specified in the Schedule. Checks shall be made payable to the office designated in the contract and shall be forwarded to the Contracting Officer.

(b) Upon the Government's receipt of each increment of payment, the Contractor shall receive title to such property as the Contracting Officer determines to be fair and reasonable for that increment of payment. Upon receipt of the Contractor's final payment, all title that has not passed to the Contractor shall vest in the Contractor, unless specifically designated in the Schedule as being retained by the Government. The Government shall not be responsible for the condition of, or any loss or damage to, the property.

(c) The Contractor shall promptly remove from the site all property acquired by the Contractor. The Government will 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 this permission, the Contractor agrees to waive any right, title, claim, or interest in and to the property.

(End of clause)

Sections it refers to

Sections that refer to it

← 52.237-5 Payment by Contractor to Government. · 52.237-7 Indemnification and Medical Liability Insurance. →

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 52.237-6 Incremental Payment by Contractor to Government · SpendQuery