FAR 31.201-7—Construction and architect-engineer contracts.
Plain-English Summary
FAR 31.201-7 is a cross-reference provision that tells readers where to find the cost principles and procedures that apply to construction contracts, construction subcontracts, and architect-engineer (A-E) contracts related to construction projects. It does not itself establish the detailed cost rules; instead, it points to FAR 31.105 for the specific principles and procedures used to evaluate and determine allowable costs in these contract types, and it points to FAR 31.000 and 31.100 for the rules on when Part 31 applies. In practice, this section matters because construction and A-E work often involve cost allowability issues that are different from other service or supply contracts, so contractors and contracting officers must use the correct FAR subpart rather than relying on general cost principles alone. The section helps ensure that cost evaluations are made under the specialized framework intended for construction-related work, including both prime contracts and subcontracts. It also reinforces that applicability is not automatic; users must first confirm whether Part 31 applies under the general applicability provisions before applying the construction-specific guidance. For contractors, this means careful contract-type analysis before preparing proposals, billing, or indirect cost submissions. For contracting officers, it means using the correct regulatory source when reviewing proposed or incurred costs on construction and A-E efforts.
Key Rules
Use FAR 31.105
The specific principles and procedures for evaluating and determining costs on construction contracts, construction subcontracts, and architect-engineer contracts related to construction projects are found in FAR 31.105. This section itself does not restate those rules; it directs the reader to the specialized cost guidance.
Check applicability first
Before applying the construction and A-E cost rules, users must determine whether FAR Part 31 applies under FAR 31.000 and 31.100. Those sections control the scope and applicability of the cost principles.
Covers prime and subcontract levels
The reference applies not only to prime construction and A-E contracts, but also to subcontracts connected to those efforts. Cost evaluation must therefore consider the contract tier involved, not just the prime contract.
Limited to construction-related A-E work
The A-E reference is specifically for architect-engineer contracts related to construction projects. It does not create a general rule for all A-E services; the relationship to a construction project is part of the applicability.
Cross-reference, not a standalone rule
This provision functions as a navigation clause rather than a substantive cost principle. Users must read it together with the referenced sections to understand the actual allowability and evaluation standards.
Responsibilities
Contracting Officer
Identify whether the contract or subcontract is a construction or construction-related architect-engineer effort, confirm that FAR Part 31 applies under the applicability provisions, and use FAR 31.105 when evaluating or determining costs.
Contractor
Determine whether the work falls within the construction or construction-related A-E category, apply the correct FAR cost principles when preparing proposals, billing, and cost submissions, and ensure subcontract cost treatment follows the same applicable framework.
Subcontractor
Follow the cost principles applicable to the subcontracted construction or A-E work and provide cost information consistent with the governing FAR provisions and any flowdown requirements.
Agency
Ensure acquisition personnel use the correct regulatory references for construction and A-E cost evaluation and apply the Part 31 applicability rules consistently across related procurements.
Practical Implications
This section is a reminder to verify contract type before analyzing costs; using the wrong FAR subpart can lead to incorrect allowability decisions.
Because it points to other sections, users must read it with FAR 31.105, 31.000, and 31.100 rather than treating it as a complete rule.
Construction and A-E subcontracts are included, so prime contractors need to flow the correct cost standards down and review subcontract costs carefully.
A common pitfall is assuming all architect-engineer work is covered; the rule is limited to A-E contracts related to construction projects.
For day-to-day administration, this provision mainly affects proposal review, incurred cost review, and audit support by directing everyone to the specialized construction cost framework.
Official Regulatory Text
Specific principles and procedures for evaluating and determining costs in connection with contracts and subcontracts for construction, and architect-engineer contracts related to construction projects, are in 31.105 . The applicability of these principles and procedures is set forth in 31.000 and 31.100 .