Payment due dates for construction contracts are addressed at FAR 32.904(d). The following procedures apply to construction and building service contracts:
(a) The amount of final payment must include, as appropriate, deductions to cover any of the following:
- (1) Liquidated damages for late completion.
- (2) Liquidated damages for labor violations.
- (3) Amounts withheld for improper payment of labor wages.
- (4) The amount of unilateral change orders covering defects and omissions.
- (5) The agreed-upon dollar amount in a Deficiency Report, which is included in all applicable Operation and Maintenance (O&M) service contracts.
- (b) An official one level above the contracting officer shall approve justifications exercising the authority prescribed by FAR 32.904(d)(1)(i)(B). The time needed should be determined on a case-by-case basis, but the specified constructive acceptance period shall not exceed 30 days.
[74 FR 54917, Oct. 26, 2009, as amended at 86 FR 55520, Oct. 6, 2021]