48 CFR · Federal Acquisition Regulation and Defense supplement

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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.

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10 sections with “liquidation of liability”

  • FAR 49.406 Liquidation of liability.
    The contract provides that the contractor and the surety are liable to the Government for resultant damages. The contracting officer shall use all retained percentages of progress payments previously made to the contractor and any progress …
  • FAR 52.232-12 Advance Payments.
    …nder this paragraph shall be applied to reduce the unliquidated advance payments. If full liquidation has been made, payments under the contract shall resume. (f) Interest. (1) The Contractor shall pay interest to the Government on the dai…
  • FAR 52.232-16 Progress Payments.
    …, and accepted shall not include costs in excess of the contract price of the items. (b) Liquidation. Except as provided in the Termination for Convenience of the Government clause, all progress payments shall be liquidated by deducting fr…
  • FAR 52.232-32 Performance-Based Payments.
    … does not excuse the Contractor from performance of obligations under this contract. (d) Liquidation of performance-based payments. (1) Performance-based finance amounts paid prior to payment for delivery of an item shall be liquidated by …
  • FAR 32.503-2 Supervision of progress payments.
    …r progress payment contract may affect adversely the performance of that contract and the liquidation of the progress payments. (c) For contracts with contractors (1) whose financial condition is doubtful or not strong in relation to progr…
  • FAR 52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services.
    …g the— (A) Circumstances of the overpayment (e.g., duplicate payment, erroneous payment, liquidation errors, date(s) of overpayment); (B) Affected contract number and delivery order number, if applicable; (C) Affected line item or sublin…
  • FAR 52.216-5 Price Redetermination—Prospective.
    … credits effected under this clause. If any portion of the excess has been applied to the liquidation of progress payments, then that portion may, instead of being refunded, be added to the unliquidated progress payment account, consistent …
  • FAR 52.216-17 Incentive Price Revision—Successive Targets.
    … credits effected under this clause. If any portion of the excess has been applied to the liquidation of progress payments, then that portion may, instead of being refunded, be added to the unliquidated progress payment account consistent w…
  • DFARS 232.072-3 Cash flow forecasts.
    …) Estimated amounts and timing of cash receipts from lenders or other credit sources, and liquidation of loans; and (8) Estimated amount and timing of cash receipt from other sources. (f) The contracting officer should review the assumpti…
  • DFARS 232.501-3 Contract price.
    …he lesser of— (i) The applicable rate (i.e., the lower of the progress payment rate, the liquidation rate, or the loss-ratio adjusted rate); or (ii) 100 percent of the funds obligated.

FAR (chapter 1)

DFARS (chapter 2, Defense)

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Rule changes in progress: FAR, DFARS. Terms: glossary.