FAR 33.201—Definitions.
Plain-English Summary
FAR 33.201 provides the core definitions used in the disputes and claims subpart, and those definitions control how contracting officers, contractors, and reviewers apply the rest of the rules in FAR Part 33. It covers five key topics: accrual of a claim, alternative dispute resolution (ADR), defective certification, issue in controversy, and misrepresentation of fact. These definitions matter because they determine when a claim starts the clock, what kinds of informal or formal dispute-resolution methods may be used, when a claim certification is legally sufficient, what qualifies as a dispute that may become a claim, and when false statements can affect the handling of a matter. In practice, these terms shape deadlines, jurisdictional questions, settlement strategy, and the validity of contractor claims. A correct understanding of them helps avoid missed claim deadlines, defective certifications, and avoidable disputes over whether a matter is ripe for resolution or has been tainted by misrepresentation.
Key Rules
Claim accrual starts when facts are known
A claim accrues when all events fixing alleged liability have occurred and the relevant facts were known or should have been known. Liability must be fixed by some injury, but the amount of monetary damages does not have to be known or incurred yet.
ADR is voluntary dispute resolution
Alternative dispute resolution includes any voluntary procedure used to resolve issues in controversy, such as mediation, facilitation, fact-finding, minitrials, arbitration, and ombudsmen. The definition is broad so agencies and contractors can use flexible methods to resolve disputes without full litigation or formal claims processing.
Defective certification is not the same as no certification
A defective certification is one that changes the required certification language or is signed by someone not authorized to bind the contractor on the claim. A complete failure to certify is treated separately and is not considered a defective certification under this definition.
Issue in controversy is a material disagreement
An issue in controversy is a material disagreement between the Government and the contractor that may become a claim or is already part of an existing claim. This definition helps identify disputes that are suitable for negotiation, ADR, or formal claims procedures.
Misrepresentation requires falsehood and intent
Misrepresentation of fact means a false statement of substantive fact, or conduct that creates a false belief about a material fact, made with intent to deceive or mislead. The definition focuses on both the falsity of the statement or conduct and the intent behind it.
Responsibilities
Contracting Officer
Identify when a claim has accrued, determine whether a matter is an issue in controversy, and evaluate whether a contractor’s certification is defective or absent. The contracting officer should also consider ADR where appropriate and remain alert to possible misrepresentation affecting the dispute.
Contractor
Track potential claim accrual dates, submit claims before deadlines run, and ensure any required certification uses the correct FAR language and is signed by an authorized person. The contractor should also approach ADR in good faith and avoid false statements or misleading conduct in claim-related communications.
Agency
Provide procedures and support for ADR, ensure disputes are handled consistently with the definitions in this subpart, and train personnel to recognize claim accrual, certification defects, and misrepresentation issues. The agency should also maintain integrity in dispute resolution and claims administration.
Authorized Certifier
Sign the claim certification only if authorized to bind the contractor with respect to the claim and ensure the certification language matches FAR 33.207(c). This person is responsible for the validity of the certification attached to the claim.
Practical Implications
Claim timing is critical: accrual can occur before the contractor knows the full dollar amount, so waiting for complete damages information can cause a claim to be untimely.
Certification errors can delay resolution: a defective certification may be curable, but a missing certification is treated differently and can create more serious processing problems.
ADR can save time and cost, but it is voluntary and works best when both sides agree that the issue is a real, material dispute that can be resolved outside formal litigation.
Misrepresentation can undermine credibility and settlement prospects, so contractors and government personnel should ensure factual statements are accurate and supported.
The definition of issue in controversy helps distinguish routine administration from disputes that need formal attention, which is important for deciding when to negotiate, mediate, or file a claim.
Official Regulatory Text
As used in this subpart- Accrual of a claim means the date when all events, that fix the alleged liability of either the Government or the contractor and permit assertion of the claim, were known or should have been known. For liability to be fixed, some injury must have occurred. However, monetary damages need not have been incurred. Alternative dispute resolution (ADR) means any type of procedure or combination of procedures voluntarily used to resolve issues in controversy. These procedures may include, but are not limited to, conciliation, facilitation, mediation, fact-finding, minitrials, arbitration, and use of ombudsmen. Defective certification means a certificate which alters or otherwise deviates from the language in 33.207 (c) or which is not executed by a person authorized to bind the contractor with respect to the claim. Failure to certify shall not be deemed to be a defective certification. Issue in controversy means a material disagreement between the Government and the contractor that- (1) May result in a claim; or (2) Is all or part of an existing claim. Misrepresentation of fact means a false statement of substantive fact, or any conduct which leads to the belief of a substantive fact material to proper understanding of the matter in hand, made with intent to deceive or mislead.