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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20 sections with “settlement expenses”

  • FAR 49.206-2 Bases for settlement proposals.
    (a) Inventory basis. (1) Use of the inventory basis for settlement proposals is preferred. Under this basis, the contractor may propose only costs allocable to the terminated portion of the contract, and the settlement proposal must itemize…
  • FAR 31.205-42 Termination costs.
    …hinery and equipment and starting load costs. (3) When initial costs are included in the settlement proposal as a direct charge, such costs shall not also be included in overhead. Initial costs attributable to only one contract shall not b…
  • FAR 49.202 Profit.
    …and work done by the contractor for the terminated portion of the contract but not on the settlement expenses. Anticipatory profits and consequential damages shall not be allowed (but see 49.108-5). Profit for the contractor's efforts in se…
  • FAR 49.203 Adjustment for loss.
    (a) In the negotiation or determination of any settlement, the TCO shall not allow profit if it appears that the contractor would have incurred a loss had the entire contract been completed. The TCO shall negotiate or determine the amount o…
  • FAR 52.249-2 Termination for Convenience of the Government (Fixed-Price).
    …ed, in which case the Government shall have the right to settle or to pay any termination settlement proposal arising out of those terminations. (5) With approval or ratification to the extent required by the Contracting Officer, settle al…
  • FAR 52.249-3 Termination for Convenience of the Government (Dismantling, Demolition, or Removal of Improvements).
    …ed, in which case the Government shall have the right to settle or to pay any termination settlement proposal arising out of those terminations. (5) With approval or ratification to the extent required by the Contracting Officer, settle al…
  • FAR 52.249-6 Termination (Cost-Reimbursement).
    …ed, in which case the Government shall have the right to settle or to pay any termination settlement proposal arising out of those terminations. (5) With approval or ratification to the extent required by the Contracting Officer, settle al…
  • FAR 52.216-7 Allowable Cost and Payment.
    …and billed, as required in paragraph (d)(2)(iii)(I) of this section, within 60 days after settlement of final indirect cost rates. (3) The Contractor and the appropriate Government representative shall execute a written understanding setti…
  • FAR 52.250-1 Indemnification Under Public Law 85-804.
    …mnify the Contractor against— (1) Claims (including reasonable expenses of litigation or settlement) by third persons (including employees of the Contractor) for death; personal injury; or loss of, damage to, or loss of use of property; (…
  • DFARS 252.235-7000 Indemnification Under 10 U.S.C. 3861—Fixed Price.
    …e, or lost use of property. Claims include those for reasonable expenses of litigation or settlement. The term third persons includes employees of the contractor; (2) The loss, damage, and lost use of the Contractor's property, but excludi…
  • DFARS 252.235-7001 Indemnification Under 10 U.S.C. 3861—Cost Reimbursement.
    …e, or lost use of property. Claims include those for reasonable expenses of litigation or settlement. The term “third persons” includes employees of the Contractor; (2) The loss, damage, and lost use of the Contractor's property, but exclu…
  • FAR 2.101 Definitions.
    …inent law, regulation, or contract, cannot be included in prices, cost-reimbursements, or settlements under a Government contract to which it is allocable. Unique and innovative concept, when used relative to an unsolicited research propos…
  • FAR 31.001 Definitions.
    … submission used as a basis for pricing a contract, contract modification, or termination settlement or for securing payments thereunder. Qualified pension plan means a pension plan comprising a definite written program communicated to and…
  • FAR 31.205-35 Relocation costs.
    …xing up expenses), utilities, taxes, property insurance, and mortgage interest, after the settlement date or lease date of a new permanent residence, except that these costs, when added to the costs described in paragraph (a)(3) of this sub…
  • FAR 31.205-47 Costs related to legal and other proceedings.
    … allowed to the extent specifically provided in such agreement. (2)(i) In the event of a settlement of any proceeding brought by a third party under the False Claims Act in which the United States did not intervene, reasonable costs incurr…
  • FAR 52.227-17 Rights in Data—Special Works.
    …ticipate in the defense of the claim or suit, and obtains the Contractor's consent to the settlement of any claim or suit other than as required by final decree of a court of competent jurisdiction; and these provisions do not apply to mate…
  • FAR 52.227-18 Rights in Data—Existing Works.
    …ticipate in the defense of the claim or suit, and obtains the Contractor's consent to the settlement of any claim or suit other than as required by final decree of a court of competent jurisdiction; and do not apply to material furnished to…
  • FAR 52.228-7 Insurance—Liability to Third Persons.
    …ontractor's agents, servants, or employees, and must be represented by final judgments or settlements approved in writing by the Government. These liabilities are for— (i) Loss of or damage to property (other than property owned, occupied,…
  • DFARS 252.217-7012 Liability and insurance.
    …ntractor shall cooperate with the Government and, upon request, shall assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses, and in the conduct of suits. The Government shall reimburse the Cont…
  • DFARS 252.249-7000 Special termination costs.
    … (2) Reasonable costs continuing after termination, as provided in FAR 31.205-42(b); (3) Settlement of expenses, as provided in FAR 31.205-42(g); (4) Costs of return of field service personnel from sites, as provided in FAR 31.205-35 and …

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.