FAR 36.507—Permits and responsibilities.
Plain-English Summary
FAR 36.507 tells contracting officers when they must include the clause at 52.236-7, Permits and Responsibilities, in construction-related solicitations and contracts. It applies to fixed-price or cost-reimbursement construction contracts, and to fixed-price contracts for dismantling, demolition, or removal of improvements. The section is short, but it is important because it shifts attention to the contractor’s duty to obtain and pay for the permits, licenses, and approvals needed to perform the work, rather than assuming the Government will secure them. In practice, this clause helps avoid disputes over who is responsible for local, state, or other regulatory authorizations, and it reminds both sides to identify permit needs early in planning and pricing. It also matters because failure to include the clause when required can create ambiguity about compliance responsibilities on projects where permits are often critical to schedule, cost, and lawful performance.
Key Rules
Insert the clause when required
The contracting officer must include FAR 52.236-7, Permits and Responsibilities, in solicitations and contracts when the contemplated contract falls within the covered categories. This is a mandatory inclusion rule, not a discretionary one.
Applies to covered construction contracts
The clause is required for fixed-price or cost-reimbursement construction contracts. The section is aimed at construction procurement where permit and approval issues commonly arise.
Also applies to demolition-type work
The clause is also required for fixed-price contracts for dismantling, demolition, or removal of improvements. These projects often involve local permits, utility clearances, environmental approvals, and similar authorizations.
Focuses on permit responsibility
The purpose of the clause is to allocate responsibility for obtaining the permits and approvals needed to perform the work. It helps make clear that the contractor, not the Government, is generally responsible for compliance-related authorizations unless the contract says otherwise.
Responsibilities
Contracting Officer
Determine whether the contemplated procurement is a covered construction, dismantling, demolition, or removal contract, and insert clause 52.236-7 in the solicitation and resulting contract when required.
Contractor
Plan for and obtain the permits, licenses, and approvals needed to perform the work, and account for those requirements in pricing, scheduling, and execution unless the contract places a specific permit obligation on the Government.
Agency
Structure the acquisition so permit responsibilities are clearly addressed in the solicitation and contract documents, reducing ambiguity and avoiding performance delays or disputes.
Practical Implications
Contractors should identify permit needs early, because local approvals can affect start dates, sequencing, subcontracting, and cost estimates.
Contracting officers should verify the clause is included in all covered procurements; omission can create avoidable disputes over who bears permit-related risk.
The clause does not eliminate the need to review the contract for any special Government-furnished permits, access approvals, or site-specific compliance requirements.
A common pitfall is assuming all permits are the contractor’s responsibility without checking whether the solicitation or other contract terms shift any obligations to the Government.
For demolition and removal work, permit and utility coordination issues can be just as important as in new construction, so both sides should treat them as a pre-award planning item.
Official Regulatory Text
The contracting officer shall insert the clause at 52.236-7 , Permits and Responsibilities, in solicitations and contracts when a fixed-price or cost-reimbursement construction contract or a fixed-price dismantling, demolition, or removal of improvements contract is contemplated.