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.