FAR 46.312—Construction contracts.
Plain-English Summary
FAR 46.312 addresses when the Government must or may use the Inspection of Construction clause at FAR 52.246-12 in construction solicitations and contracts. It focuses on one specific topic: the clause’s required inclusion in fixed-price construction acquisitions expected to exceed the simplified acquisition threshold, and its optional use in smaller construction buys when the Government decides the clause is in its interest. In practice, this section tells contracting officers which construction contracts need the standard inspection terms that govern how construction work will be examined, accepted, and corrected. It matters because inspection rights and acceptance procedures are central to managing construction quality, resolving defects, and protecting the Government’s interests. For contractors, it signals that construction contracts may include formal inspection obligations even on relatively small projects if the agency chooses to include them. For contracting officers, it is a straightforward but important clause-selection rule that must be applied consistently at solicitation and award.
Key Rules
Mandatory for larger fixed-price construction
The contracting officer must insert FAR 52.246-12, Inspection of Construction, in solicitations and contracts for construction when a fixed-price contract is contemplated and the expected contract amount exceeds the simplified acquisition threshold. This is a required clause, not a discretionary one, when both conditions are met.
Optional for smaller construction buys
When the expected contract amount is at or below the simplified acquisition threshold, the contracting officer may still insert the clause if doing so is in the Government’s interest. The rule gives discretion to use the clause for lower-dollar construction acquisitions when inspection protections are still desirable.
Applies to solicitations and contracts
The clause decision must be made at the solicitation stage and carried through into the resulting contract. This ensures offerors know the inspection terms before bidding and that the final contract contains the correct inspection requirements.
Limited to construction and fixed-price context
This section is specifically about construction contracts and only addresses situations where a fixed-price contract is contemplated. It does not create a general inspection-clause rule for other contract types or non-construction acquisitions.
Responsibilities
Contracting Officer
Determine whether the acquisition is for construction and whether a fixed-price contract is contemplated. Insert FAR 52.246-12 when the expected contract amount exceeds the simplified acquisition threshold, and decide whether to include it for smaller construction acquisitions when that is in the Government’s interest.
Agency/Program Office
Provide accurate acquisition requirements and cost/price information so the contracting officer can determine whether the expected contract amount is above or below the simplified acquisition threshold and whether the inspection clause is appropriate for the project.
Contractor
Review the solicitation and contract for the inspection clause and comply with the inspection, correction, and acceptance requirements that flow from its inclusion in the construction contract.
Practical Implications
Contracting officers must make the clause decision early, because the solicitation should tell offerors whether Inspection of Construction applies.
A common pitfall is overlooking the simplified acquisition threshold or misclassifying the acquisition as not requiring the clause when the expected value is above the threshold.
Even when the contract is small, agencies may still want the clause to preserve inspection and correction rights, so the decision should be based on project risk, not just dollar value.
Contractors should expect formal inspection and acceptance procedures in construction work and should price and plan for potential correction of nonconforming work.
Because this rule is narrow, it is easy to miss during clause selection; using a checklist for construction acquisitions helps ensure the correct clause is included.
Official Regulatory Text
The contracting officer shall insert the clause at 52.246-12 , Inspection of Construction, in solicitations and contracts for construction when a fixed-price contract is contemplated and the contract amount is expected to exceed the simplified acquisition threshold. The contracting officer may insert the clause in such solicitations and contracts when the contract amount is expected to be at or below the simplified acquisition threshold, and its use is in the Government’s interest.