532.904 Determining payment due dates.

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.