FAR 52.247-22—Contractor Liability for Loss of and/or Damage to Freight other than Household Goods.
Plain-English Summary
FAR 52.247-22 is a transportation clause used in solicitations and contracts for the movement of freight other than household goods. It addresses one core topic: the contractor’s liability for loss of and/or damage to freight while performing the transportation covered by the contract. The clause establishes a default rule of full contractor liability, but it also recognizes an exception when the loss or damage results from causes beyond the contractor’s control and without the contractor’s fault or negligence. In practice, this clause allocates risk between the Government and the carrier, making it clear who bears the financial responsibility if freight is lost or damaged during shipment. It is important because it affects pricing, claims handling, insurance expectations, and dispute resolution in freight transportation contracts. The clause is prescribed by FAR 47.207-7(d), so it is intended for use specifically in contracts for transportation of freight other than household goods, not as a general-purpose property damage clause.
Key Rules
Applies to freight transport
This clause is used in solicitations and contracts for the transportation of freight other than household goods. It is not the standard clause for household goods moves, which are handled under different rules and clauses.
Default full liability
Unless an exception applies, the contractor assumes full liability for any and all goods lost or damaged in the movement covered by the contract. The clause is broad and places the risk of loss on the contractor during performance.
Exception for uncontrollable causes
The contractor is not liable when the loss or damage arises from causes beyond the contractor’s control and without the contractor’s fault or negligence. This is a limited exception and the contractor must be able to show both elements: lack of control and lack of fault or negligence.
Loss or damage during movement
The clause covers goods lost and/or damaged in the movement covered by the contract. The relevant period is the transportation movement performed under the contract, so parties should focus on custody, handling, and transit events tied to that movement.
Contractual risk allocation
The clause functions as a risk-allocation term, not merely a claims statement. It tells the parties in advance how liability will be assigned if freight is not delivered intact, which can affect carrier pricing, insurance coverage, and contract administration.
Responsibilities
Contracting Officer
Insert the clause when required by FAR 47.207-7(d) in solicitations and contracts for transportation of freight other than household goods. Ensure the contract clearly reflects the liability standard so offerors understand the risk they are accepting.
Contractor
Safeguard freight during the movement, prevent loss and damage, and accept full liability for goods lost or damaged unless the contractor can prove the loss resulted from causes beyond its control and without its fault or negligence. Maintain records and evidence needed to support any exception claim.
Agency/Shipper
Document the condition and quantity of freight at tender and receipt, report loss or damage promptly, and support any claim or recovery action with shipment records, inspection results, and delivery documentation.
Claims/Property Personnel
Evaluate whether the loss or damage occurred during the covered movement and whether the contractor can establish the exception. Coordinate documentation, damage assessments, and recovery actions consistent with the contract terms.
Practical Implications
This clause puts the financial risk of transit loss or damage primarily on the carrier, so contractors should price that risk and ensure their insurance and internal controls are adequate.
Disputes often turn on proof: who had custody, when the damage occurred, and whether the contractor can show the cause was truly beyond its control and not due to negligence.
Good shipment documentation matters. Bills of lading, condition reports, seal records, photos, and delivery receipts are often critical to proving or defending a claim.
Contractors should not assume every accident is excused. Mechanical failure, poor loading, inadequate securing, or employee error may still be treated as contractor fault or negligence.
Contracting officers and shippers should make sure the contract file and shipment records clearly identify the movement covered by the clause, since liability depends on the specific transportation performed under the contract.
Official Regulatory Text
As prescribed in 47.207-7 (d) , insert the following clause in solicitations and contracts for the transportation of freight other than household goods: Contractor Liability for Loss of and/or Damage to Freight other than Household Goods (Apr 1984) Except when loss and/or damage arises out of causes beyond the control and without the fault or negligence of the Contractor, the Contractor shall assume full liability for any and all goods lost and/or damaged in the movement covered by this contract. (End of clause)