FAR 52.236-11—Use and Possession Prior to Completion.
Plain-English Summary
FAR 52.236-11, Use and Possession Prior to Completion, addresses the Government’s right to take possession of or use completed or partially completed work before the construction contract is finished, and the contractor’s rights and obligations when that happens. It explains that the contracting officer must provide the contractor a list of remaining work or corrections for the portion the Government intends to occupy or use, but that omission of an item from that list does not waive the contractor’s contractual responsibilities. The clause also makes clear that Government possession or use is not acceptance of the work, so the contractor still remains responsible for completing and correcting the work under the contract. At the same time, once the Government takes possession or uses the work, the contractor is relieved of responsibility for loss of or damage to that work caused by the Government’s possession or use, even if other contract language such as Permits and Responsibilities would otherwise suggest contractor liability. Finally, the clause provides for an equitable adjustment to price or time if early Government possession or use delays the work or increases the contractor’s costs, and requires the contract to be modified in writing to reflect that adjustment. In practice, this clause is important because it allocates risk, preserves the Government’s operational flexibility, and creates a mechanism to compensate the contractor when early occupancy interferes with performance.
Key Rules
Government may occupy early
The Government has the right to take possession of or use any completed or partially completed part of the work before final completion. This right applies to all or part of the work and is not limited to fully finished portions.
Pre-occupancy punch list required
Before taking possession or using the work, the contracting officer must give the contractor a list of items still to be performed or corrected for the portion the Government will use. This list is meant to identify outstanding work, but it is not exhaustive protection for the contractor or a substitute for contract compliance.
Omitted items remain contractor duties
If the contracting officer fails to list an item, the contractor is still responsible for meeting all contract requirements. The Government’s list does not waive any specification, drawing, or other contractual obligation.
Use is not acceptance
Government possession or use of the work does not count as acceptance under the contract. The contractor may still be required to finish, correct, or replace work, and the Government retains its rights to inspect and enforce the contract.
Risk shifts for Government-caused damage
While the Government has possession or use, the contractor is relieved of responsibility for loss of or damage to the work resulting from that possession or use. This protection applies even if another clause, such as Permits and Responsibilities, would otherwise place broader risk on the contractor.
Equitable adjustment available
If early Government possession or use delays the contractor’s progress or causes additional expense, the contractor is entitled to an equitable adjustment in contract price or completion time. Any adjustment must be documented through a written contract modification.
Responsibilities
Contracting Officer
Determine when the Government will take possession of or use completed or partially completed work, provide the contractor a list of remaining or corrective items before occupancy or use, and issue a written modification if an equitable adjustment is warranted for delay or added cost.
Government
Use or occupy the work only in a way that does not improperly shift responsibility for its own-caused damage to the contractor, and recognize that possession or use does not equal acceptance of the work.
Contractor
Continue to complete and correct all contract work even if the Government occupies or uses part of it, track any delay or added costs caused by early possession or use, and request an equitable adjustment when appropriate.
Practical Implications
This clause is common on construction projects where the Government needs to move into a building or use a facility before final completion, so contractors should plan for phased turnover and partial occupancy.
Contractors should not treat the Government’s punch list as the full scope of remaining obligations; missing items can still be enforced later if they are required by the contract.
Early Government use can create scheduling, access, safety, and coordination issues, so contractors should document impacts immediately and preserve evidence of delay or extra cost.
Because possession or use is not acceptance, contractors should keep quality-control records and closeout documentation until final acceptance is actually issued.
Any time or price relief must be captured in a written modification, so verbal understandings about early occupancy or added costs are not enough.
Official Regulatory Text
As prescribed in 36.511 , insert the following clause: Use and Possession Prior to Completion (Apr 1984) (a) The Government shall have the right to take possession of or use any completed or partially completed part of the work. Before taking possession of or using any work, the Contracting Officer shall furnish the Contractor a list of items of work remaining to be performed or corrected on those portions of the work that the Government intends to take possession of or use. However, failure of the Contracting Officer to list any item of work shall not relieve the Contractor of responsibility for complying with the terms of the contract. The Government’s possession or use shall not be deemed an acceptance of any work under the contract. (b) While the Government has such possession or use, the Contractor shall be relieved of the responsibility for the loss of or damage to the work resulting from the Government’s possession or use, notwithstanding the terms of the clause in this contract entitled "Permits and Responsibilities." If prior possession or use by the Government delays the progress of the work or causes additional expense to the Contractor, an equitable adjustment shall be made in the contract price or the time of completion, and the contract shall be modified in writing accordingly. (End of clause)