Government Contracts GSA Revises Construction Contract Administration Requirements
Tuesday, March 5, 2019

GSA Revises Construction Contract Administration Requirements

By Government Contracts Editorial Staff

A General Services Administration Acquisition Regulation final rule adds solicitation provisions and clauses for construction contracts, and clarifies, updates, and incorporates existing construction contract administration procedures. Specifically, the rule adds the following eight clauses to the GSAR: GSAR 552.211-10, Commencement, Prosecution, and Completion of Work; GSAR 552.211-12, Liquidated Damages—Construction; GSAR 552.211-13, Time Extensions; GSAR 552.211-70, Substantial Completion; GSAR 552.232-5, Payments under Fixed-Price Construction Contracts; GSAR 552.236-6, Superintendence by the Contractor; GSAR 552.236-15, Schedules for Construction Contracts; and GSAR 552.236-71, Contractor Responsibilities. These clauses incorporate existing GSA policy created without use of the rulemaking process. The rule also includes three other construction-related clauses and revises and reorganizes three existing clauses: GSAR 552.236-11, Use and Possession Prior to Completion; GSAR 552.236-21, Specifications and Drawings for Construction; GSAR 552.236-70, Definitions; GSAR 552.236-72, Submittals; GSAR 552.236-73, Subcontracts; and GSAR 552.243-71, Equitable Adjustments. These clause changes make the GSAR more streamlined and in alignment with the Federal Acquisition Regulation.

Options. Another group of changes addresses the use of options. GSAR 536.270 addresses options in construction contracts, as required by FAR Part 17.2. The rule moves procedures on construction options in GSAR 536.213 to GSAR 536.270 and revises them so that they are more aligned with the FAR and generally apply to both negotiated procurements and sealed bidding. In connection with these changes, the rule adds three new solicitation provisions and one new contract clause: GSAR 552.236-74, Evaluation of Options; GSAR 552.236-75, Evaluation Exclusive of Options; GSAR 552.236-76, Basis of Award-Sealed Bidding Construction; and GSAR 552.236-77, Government’s Right to Exercise Options. Finally, the rule adds new GSAR 546.704, which provides approval for use of the clause at FAR 52.246-21, Warranty of Construction. A complete listing of the GSAR sections affected by the rule appears in the regulation table below. The final rule only makes a minor technical correction to the proposed rule (¶70,033.89). For the text of the final rule, which goes into effect on March 15, 2019, see ¶70,030.209.

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