SectionUpdated April 16, 2026

    FAR 36.519Organization and direction of the work.

    Plain-English Summary

    FAR 36.519 is a very short prescription rule, but it serves an important administrative purpose in federal construction contracting. It tells contracting officers when they must include the clause at 52.236-19, Organization and Direction of the Work, in solicitations and contracts: whenever a cost-reimbursement construction contract is contemplated. In practice, this means the section is not about how the work is performed or how the clause operates in detail; instead, it is about ensuring the proper clause is included at the right time in the acquisition package. The topic covered is therefore limited to clause prescription for cost-reimbursement construction contracts, and it ties directly to solicitation drafting, contract formation, and compliance with FAR clause requirements. Its practical significance is that it helps ensure the Government has the contractual framework needed to address organization and direction issues in a cost-reimbursement construction environment, where the Government’s oversight and the contractor’s management responsibilities must be clearly defined. For contracting officers, this section is a checklist item that must be applied during solicitation and contract preparation. For contractors, it signals that the resulting contract will contain the standard clause governing organization and direction of the work.

    Key Rules

    Insert the required clause

    The contracting officer must include FAR 52.236-19, Organization and Direction of the Work, in both the solicitation and the contract when the acquisition is for a cost-reimbursement construction contract.

    Applies only to cost-reimbursement construction

    This prescription is triggered by the contemplated contract type and scope: it applies to construction contracts that will be cost-reimbursement, not to all construction contracts generally.

    Clause inclusion is mandatory

    The language uses 'shall,' so the contracting officer does not have discretion to omit the clause when the condition is met. Failure to include it would be a deviation from the FAR prescription.

    Solicitation and contract must match

    The clause must be inserted in the solicitation and carried into the resulting contract, ensuring offerors know the requirement before award and the final contract contains the same term.

    Responsibilities

    Contracting Officer

    Determine whether the contemplated construction contract is cost-reimbursement and, if so, insert FAR 52.236-19 in the solicitation and contract.

    Agency

    Support acquisition planning and contract drafting so that required FAR clauses are identified and included before solicitation and award.

    Contractor

    Review the solicitation and contract terms, understand that the Organization and Direction of the Work clause applies, and account for it in pricing, staffing, and project management.

    Practical Implications

    1

    This section is mainly a clause-check requirement, so the biggest risk is omission during solicitation or award preparation.

    2

    Contracting officers should verify the contract type early; if the construction effort is cost-reimbursement, the clause must be included automatically.

    3

    Contractors should expect the clause to appear in both the solicitation and the final contract and should not assume it is optional or negotiable away.

    4

    Because the rule is narrow, it is easy to overlook during template-based drafting; acquisition teams should use clause matrices or checklists to prevent errors.

    5

    If the clause is omitted when required, the contract file may need correction, and the omission can create avoidable compliance and administration issues.

    Official Regulatory Text

    The contracting officer shall insert the clause at 52.236-19 , Organization and Direction of the Work, in solicitations and contracts when a cost-reimbursement construction contract is contemplated.