FAR 52.247-23—Contractor Liability for Loss of and/or Damage to Household Goods.
Plain-English Summary
FAR 52.247-23 is a transportation clause that allocates risk for household goods shipments and sets the contractor’s liability for loss or damage while goods are being packed, picked up, loaded, transported, delivered, unloaded, unpacked, stored in transit, or serviced by a third party hired by the contractor. It also establishes a notice requirement: the owner must give the contractor written notice of discovered loss or damage within 75 days after delivery. Finally, it requires the contractor to indemnify the owner at a specified rate per pound per article, with the blank filled in by the contracting activity. In practice, this clause is meant to protect the shipper/owner during household goods moves and to give the contractor a clear, limited liability framework tied to the movement and handling of the property. It matters because it defines when the contractor is responsible, when liability is excused, how claims must be reported, and the monetary measure of indemnification.
Key Rules
Liability During Handling
The contractor is liable for loss or damage to any article while it is being packed, picked up, loaded, transported, delivered, unloaded, unpacked, or stored in transit, unless the loss or damage resulted from causes beyond the contractor’s control and without the contractor’s fault or negligence.
Third-Party Servicing Covered
The contractor’s liability also extends to loss or damage occurring while appliances or similar items are being serviced by a third person hired by the contractor. The contractor cannot avoid responsibility simply because a subcontractor or service provider performed the work.
Written Notice Within 75 Days
The owner must dispatch written notice of discovered loss or damage to the contractor no later than 75 days after delivery. This notice requirement is a condition tied to the contractor’s liability for discovered damage.
Per-Pound Indemnity Rate
The contractor must indemnify the owner at a stated rate of cents per pound per article. The contracting activity inserts the rate in the blank, making the dollar exposure depend on the contract’s specific terms.
Fault-Based Exception
The clause does not make the contractor an absolute insurer. Liability is excused when the contractor shows the loss or damage arose from causes beyond its control and without its fault or negligence.
Responsibilities
Contractor
Safeguard household goods throughout packing, pickup, loading, transport, delivery, unloading, unpacking, storage in transit, and third-party servicing. Pay or otherwise indemnify the owner for covered loss or damage unless it can show the loss was beyond its control and not caused by its fault or negligence.
Owner
Inspect delivered goods and provide written notice of any discovered loss or damage to the contractor within 75 days after delivery. Preserve evidence of the loss or damage and support any claim under the contract terms.
Contracting Officer
Insert the applicable cents-per-pound-per-article indemnity rate in the clause and ensure the clause is used when prescribed by FAR 47.207-7(e). Oversee contract administration issues that may arise from claims, liability disputes, and compliance with the transportation terms.
Third-Party Servicer/Subcontractor
Perform appliance or other servicing carefully and in a manner that avoids damage to the goods. Although not the primary liable party under the clause, its actions are attributed to the contractor for purposes of contractor liability.
Practical Implications
This clause creates a clear claims window, so owners and receiving personnel should document damage immediately and send written notice within 75 days; late notice can jeopardize recovery.
Contractors should treat subcontractors and third-party service providers as part of their risk chain, because damage caused during servicing is still the contractor’s responsibility.
The per-pound-per-article rate can materially affect exposure, so contracting officers should ensure the blank is completed correctly and contractors should understand the financial risk before performance.
The exception for causes beyond the contractor’s control is not automatic; contractors should keep records showing the cause of loss, handling conditions, and absence of negligence.
Common disputes involve whether damage was discovered after delivery, whether notice was timely and sufficient, and whether the contractor can prove an excusable cause rather than mere assertion of nonfault.
Official Regulatory Text
As prescribed in 47.207-7 (e) , insert the following clause: Contractor Liability for Loss of and/or Damage to Household Goods (Jan 1991) (a) Except when loss and/or damage arise out of causes beyond the control and without the fault or negligence of the Contractor, the Contractor shall be liable to the owner for the loss of and/or damage to any article while being- (1) Packed, picked up, loaded, transported, delivered, unloaded, or unpacked; (2) Stored in transit; or (3) Serviced (appliances, etc.) by a third person hired by the Contractor to perform the servicing. (b) The Contractor shall be liable for loss and/or damage discovered by the owner if written notice of such loss and/or damage is dispatched to the Contractor not later than 75 days following the date of delivery. (c) The Contractor shall indemnify the owner of the goods at a rate of ___ cents per pound per article. (End of clause)