FAR 52.236-14—Availability and Use of Utility Services.
Plain-English Summary
FAR 52.236-14, Availability and Use of Utility Services, addresses when the Government may provide utility services on a Government site for fixed-price construction and fixed-price dismantling, demolition, or removal contracts, and how those services are to be used and paid for. It applies only when the contracting officer determines both that the existing utility system can meet the needs of the Government and the contractor and that furnishing utilities is in the Government’s interest; when used, the contracting officer must identify the utilities available in the contract. The clause then sets the basic payment rule for utility consumption, including charges at prevailing Government rates or reasonable rates for Government-produced utilities unless the contract says otherwise, and it requires the contractor to conserve any free utilities. It also assigns the contractor responsibility for installing, maintaining, and later removing temporary utility connections, distribution lines, and meters needed to measure usage. In practice, this clause helps avoid disputes over who pays for site utilities, how usage is measured, and who is responsible for temporary infrastructure during performance and closeout.
Key Rules
Clause applies only in limited cases
This clause is used for fixed-price construction contracts and fixed-price dismantling, demolition, or removal of improvements contracts performed on Government sites. The contracting officer must also determine that the existing utility system is adequate for both parties and that Government furnishing of utilities is in the Government’s interest.
Utilities must be listed in contract
When the clause is included, the contracting officer must identify the available utilities in the contract. This gives the contractor notice of what services may be used and helps define the scope of Government-furnished utility support.
Government provides reasonable utility access
The Government must make all reasonably required amounts of utilities available from existing outlets and supplies, as specified in the contract. The obligation is limited to what is reasonably required and what the contract identifies as available.
Contractor usually pays usage charges
Unless the contract says otherwise, the contractor must pay for utility consumption at prevailing rates charged to the Government, or at reasonable rates set by the contracting officer if the utility is produced by the Government. This makes utility use a contractor cost unless the contract shifts or waives the charge.
Conservation is required for free utilities
If utilities are furnished without charge, the contractor must carefully conserve them. The clause does not allow wasteful use simply because the service is free.
Contractor installs temporary utility systems
At its own expense, the contractor must install and maintain all necessary temporary connections, distribution lines, and meters in a workmanlike manner satisfactory to the contracting officer. These items are needed to support performance and to measure utility usage for billing.
Temporary utility items must be removed
Before final acceptance of the work, the contractor must remove all temporary connections, distribution lines, meters, and associated paraphernalia. This is a closeout obligation and part of restoring the site to the required condition.
Responsibilities
Contracting Officer
Determine whether the existing utility system is adequate and whether Government furnishing of utilities is in the Government’s interest; include the clause only when appropriate; list the available utilities in the contract; set reasonable rates for Government-produced utilities when needed; and judge whether the contractor’s temporary utility work is satisfactory.
Government
Make reasonably required amounts of listed utilities available from existing outlets and supplies; provide utility access as specified in the contract; and, where applicable, charge the contractor for consumption at the proper rates unless the contract provides otherwise.
Contractor
Use utilities in accordance with the contract; pay for utility consumption unless the contract states otherwise; conserve any utilities furnished without charge; install, maintain, and later remove temporary connections, distribution lines, meters, and related items at its own expense; and perform that work in a satisfactory, workmanlike manner.
Practical Implications
Contractors should confirm early which utilities are available, how they will be metered, and what rate structure applies, because utility costs can materially affect pricing and jobsite overhead.
If the contract is silent on a utility or on payment terms, the default rule in the clause usually controls, so both sides should check the contract language carefully before performance starts.
Temporary utility infrastructure is the contractor’s responsibility, not the Government’s, unless the contract says otherwise; failure to plan for installation, maintenance, or removal can create delay and cleanup costs.
Metering matters: if usage cannot be measured properly, billing disputes are likely, so contractors should verify meter placement, access, and calibration expectations.
At closeout, contractors should not overlook removal of temporary utility items before final acceptance, since leaving them in place can delay acceptance or lead to corrective action.
Official Regulatory Text
As prescribed in 36.514 , insert the following clause in solicitations and contracts when a fixed-price construction contract or a fixed-price dismantling, demolition, or removal of improvements contract is contemplated, the contract is to be performed on Government sites when the contracting officer decides (a) that the existing utility system is adequate for the needs of both the Government and the contractor, and (b) furnishing it is in the Government’s interest. When this clause is used, the contracting officer shall list the available utilities in the contract. Availability and Use of Utility Services (Apr 1984) (a) The Government shall make all reasonably required amounts of utilities available to the Contractor from existing outlets and supplies, as specified in the contract. Unless otherwise provided in the contract, the amount of each utility service consumed shall be charged to or paid for by the Contractor at prevailing rates charged to the Government or, where the utility is produced by the Government, at reasonable rates determined by the Contracting Officer. The Contractor shall carefully conserve any utilities furnished without charge. (b) The Contractor, at its expense and in a workmanlike manner satisfactory to the Contracting Officer, shall install and maintain all necessary temporary connections and distribution lines, and all meters required to measure the amount of each utility used for the purpose of determining charges. Before final acceptance of the work by the Government, the Contractor shall remove all the temporary connections, distribution lines, meters, and associated paraphernalia. (End of clause)