FAR 52.249—[Reserved]

Termination for Convenience of the Government (Fixed-Price) (Short Form).

FAR 52.249-1 is the short-form fixed-price termination for convenience clause. It tells the contracting officer that the Government may end the contract, in whole or in part, by written notice whenever doing so is in the Government’s interest, and it directs the parties to FAR part 49 for the detailed rules that govern the termination process, including the contractor’s compensation and the parties’ rights and duties. The clause is intentionally brief because it does not itself spell out the full settlement procedure; instead, it incorporates the termination framework in part 49 as it exists on the contract date. The clause also includes an alternate version for contracts involving dismantling, demolition, or removal of improvements, where title to property may revest in the Government upon termination, subject to limited exceptions for property already sold in good faith or removed from the site. In practice, this clause gives the Government flexibility to stop work for convenience while preserving a structured, regulated method for settling the contractor’s costs and obligations.

Termination for Convenience of the Government (Fixed-Price).

FAR 52.249-2 is the standard fixed-price termination-for-convenience clause for non-commercial contracts. It explains when the Government may end all or part of the work, how the Contracting Officer must issue the notice, and what the contractor must do immediately after receiving it. The clause also covers stop-work obligations, subcontract termination and settlement, assignment of subcontract rights, transfer and protection of Government property, disposition of termination inventory, plant clearance, submission of termination inventory schedules, and the timing and content of the final termination settlement proposal. It then describes how the parties may negotiate an agreed settlement, what happens if they cannot agree, and the limits on the amount payable, including the possibility of a reasonable profit on work performed. In practice, this clause is the roadmap for closing out a fixed-price contract after a convenience termination and is designed to protect the Government’s interest while ensuring the contractor is fairly compensated for work performed and reasonable termination costs.

Termination for Convenience of the Government (Dismantling, Demolition, or Removal of Improvements).

FAR 52.249-3 is the termination-for-convenience clause used for contracts involving dismantling, demolition, or removal of improvements. It gives the Government the right to end all or part of the work when the Contracting Officer decides termination is in the Government’s interest, and it explains how the termination is issued, how title to property reverts to the Government, and what the contractor must do immediately after notice. The clause also covers stop-work obligations, subcontract termination and assignment, settlement of subcontract claims, transfer and protection of Government-related property, sale or disposition of termination inventory, submission and verification of termination inventory schedules, and the timing and content of the final termination settlement proposal. It further addresses how the parties may negotiate an agreed settlement, the limits on that amount, and the Contracting Officer’s authority to determine an amount if the contractor does not timely submit a proposal. In practice, this clause is designed to protect the Government’s property interests while giving the contractor a defined process for recovering allowable termination costs and settlement expenses after work is stopped before completion.

Termination for Convenience of the Government (Services) (Short Form).

FAR 52.249-4 is the short-form termination for convenience clause for fixed-price service contracts when the contracting officer expects the contractor will not incur substantial startup or performance charges and, if terminated, settlement should be limited to payment for services actually rendered. The clause tells the Government when it may terminate, how it must do so, and what the contractor is entitled to receive if termination occurs. It applies to solicitations and contracts for services regardless of dollar value, but only when the contracting officer makes the required judgment under FAR 49.502(c) that this abbreviated clause is appropriate because the work does not involve significant unamortized costs, inventory, or other termination settlement exposure. In practice, the clause greatly simplifies termination administration compared with the standard termination for convenience clauses by eliminating the broader cost-recovery framework and limiting payment to the contract’s normal payment provisions for work performed before the termination date. This means contractors should understand that they generally cannot recover anticipated profits on unperformed work, settlement expenses, or other termination costs under this clause, and contracting officers should use it only when the contract type and service nature truly justify that limited remedy.

Termination for Convenience of the Government (Educational and Other Nonprofit Institutions).

FAR 52.249-5 is the termination-for-convenience clause used for contracts with educational institutions and certain nonprofit organizations. It explains when the Government may end all or part of the work, how the Contracting Officer must issue the notice of termination, and what the contractor must do immediately after receiving that notice. It also covers stop-work obligations, subcontract and commitment termination, assignment of subcontract rights, settlement of subcontract terminations, transfer and protection of Government property and contract-related items, disposition of termination inventory, and the contractor’s duty to submit termination inventory schedules and a final settlement proposal within specified deadlines. The clause further addresses negotiated settlements, the special cost principles that govern allowable termination costs for educational institutions and nonprofits, the Government’s ability to make partial payments, and the contractor’s appeal rights under the Disputes clause. In practice, this clause is the roadmap for winding down a terminated effort, preserving records and property, and calculating the amount the contractor may recover after termination.

Termination (Cost-Reimbursement).

FAR 52.249-6, Termination (Cost-Reimbursement), tells the parties what happens when the Government ends a cost-reimbursement contract before completion. It covers the Government’s right to terminate for convenience or for contractor default, the notice the Contracting Officer must issue, and the effect of a default termination if the contractor later proves the failure was excusable. It also sets out the contractor’s immediate post-termination duties: stopping work, stopping new subcontracts, terminating affected subcontracts, assigning subcontract rights, settling subcontract liabilities, transferring title and delivering terminated property and data, completing the non-terminated work, protecting Government property, and using best efforts to dispose of termination inventory. The clause then addresses inventory schedules, plant clearance, Government removal or storage of leftover property, submission of the final termination settlement proposal, timing rules and extensions, and the Government’s ability to determine the amount due if the contractor misses the deadline. In practice, this clause is the roadmap for winding down a cost-reimbursement contract in an orderly way while preserving the Government’s rights and ensuring the contractor is paid the allowable termination costs and settlement amounts it is entitled to receive.

Termination (Fixed-Price Architect-Engineer).

FAR 52.249-7 is the termination clause used in fixed-price architect-engineer contracts when the Government contemplates a fixed-price arrangement. It covers the Government’s right to terminate the contract in whole or in part, either for convenience or because the contractor failed to meet contract obligations, and it explains how the contracting officer must issue the notice of termination. It also sets out the contractor’s immediate post-termination duties, including stopping affected work and turning over all accumulated project materials such as data, drawings, specifications, reports, estimates, summaries, and other information. The clause then distinguishes the financial consequences of a convenience termination versus a default-type termination, including equitable adjustment without anticipated profit on unperformed services, Government completion of the work at the contractor’s expense if there is failure, and recharacterization of the termination as one for convenience if the contractor is later found not to be at fault. Finally, it preserves the Government’s other legal and contractual remedies, making clear that this clause does not limit any additional rights the Government may have.

Default (Fixed-Price Supply and Service).

FAR 52.249-8, Default (Fixed-Price Supply and Service), is the Government’s standard default clause for fixed-price supply and service contracts, including a transportation-related alternate. It explains when the Government may terminate a contract for default, including failure to deliver or perform on time, failure to make progress, and failure to comply with other contract terms. It also sets out the contractor’s right to a cure period for certain failures, the Government’s right to buy replacement supplies or services and recover excess reprocurement costs, and the contractor’s protection when the failure is excusable because of causes beyond its control and without its fault or negligence. The clause further addresses subcontractor-caused failures, the Government’s rights to completed and partially completed supplies and manufacturing materials after default termination, payment rules for accepted work and preserved property, and the conversion of an improper default termination into a termination for convenience. The transportation-services alternate modifies the basic clause by changing delivery language to pickup/delivery services and replacing the property-handling and payment provisions with a rule for Government goods in the contractor’s possession. In practice, this clause is central to schedule enforcement, cure notices, excusable delay analysis, default termination decisions, and post-termination settlement.

Default (Fixed-Price Research and Development).

FAR 52.249-9, Default (Fixed-Price Research and Development), sets out the Government’s right to terminate a fixed-price R&D contract for default and the contractor’s protections if the failure to perform is excusable. It covers the grounds for default termination, including failure to meet the required time, failure to prosecute the work so performance is endangered, and failure to perform other contract provisions; the cure notice process for certain failures; the Government’s right to acquire replacement work and charge excess reprocurement costs; excusable causes beyond the contractor’s control; special treatment of subcontractor defaults; the contractor’s duties to transfer title, deliver work and property, and preserve Government interests after termination; payment rules for accepted and partially completed work and preservation efforts; conversion of a default termination to a convenience termination if the default is later found not to exist or to be excusable; and the clause’s statement that these remedies are cumulative with other legal and contractual remedies. In practice, this clause is the Government’s primary enforcement tool for serious performance failures in fixed-price R&D contracts, but it also requires careful documentation, notice, and causation analysis before default is imposed. For contractors, the clause highlights the importance of schedule management, prompt response to cure notices, subcontract oversight, and preserving evidence of excusable delay. For contracting officers, it requires disciplined use of notices, careful assessment of whether the failure is truly within the contractor’s control, and proper handling of post-termination property and payment issues.

Default (Fixed-Price Construction).

FAR 52.249-10 is the default clause for fixed-price construction contracts. It tells the Government when it may terminate a contractor’s right to proceed for failure to prosecute the work diligently or failure to complete on time, and it explains the Government’s remedies after default, including takeover of the work, completion by another contractor or by other means, and use of materials, appliances, and plant at the site. It also addresses the contractor’s and sureties’ liability for damages, including excess completion costs, and sets out the contractor’s excusable-delay defenses for unforeseeable causes beyond its control and without its fault or negligence. The clause requires prompt written notice of delay, gives the contracting officer authority to investigate the facts and extend the completion time when warranted, and makes those findings final and conclusive subject to the Disputes clause. It further explains that if a termination for default is later found improper or the delay is excusable, the matter is treated as a termination for convenience. Finally, the clause states that the Government’s rights and remedies are cumulative, not exclusive, and includes special alternate provisions for demolition/dismantling/removal contracts and for contracts awarded during a national emergency.

[Reserved]

Termination (Personal Services).

FAR 52.249-12, Termination (Personal Services), is a short clause that governs how a personal services contract may be ended before its normal completion. It addresses four core topics: when the clause must be used in solicitations and contracts, the Government’s right to terminate the contract, the contractor’s limited right to terminate, the required 15-day written notice period, and the need for the Contracting Officer’s written consent if the contractor wants to end the contract. The clause exists because personal services arrangements are treated differently from ordinary supply or nonpersonal service contracts, and the Government needs a clear, simple mechanism to stop the relationship when needed. In practice, this clause gives the Government broad flexibility to end the contract on short notice, while giving the contractor only a conditional ability to do the same. It is important for both parties to understand that this clause is about termination authority and notice timing; it does not itself spell out settlement, payment, or other post-termination procedures. Those issues may be addressed elsewhere in the contract or under applicable FAR provisions.

[Reserved]

Excusable Delays.

FAR 52.249-14, Excusable Delays, explains when a contractor will not be treated as in default for failing to perform on time because the delay was caused by events beyond the contractor’s control and without the contractor’s fault or negligence. The clause addresses the basic excusable-delay standard, gives examples of qualifying causes such as acts of God, government acts, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes, and unusually severe weather, and makes clear that default also includes failure to make progress that endangers performance. It also covers subcontractor-caused delays, including the special rule that a prime contractor may still be in default if substitute sources were available, the contracting officer directed purchase from another source in writing, and the contractor failed to comply reasonably. Finally, it sets out the contracting officer’s duty to investigate the facts on request and, if the delay is excusable, revise the delivery schedule subject to the Government’s termination rights. In practice, this clause is important because it allocates schedule-risk fairly, protects contractors from default when truly uncontrollable events occur, and gives the Government a process to verify the cause, extent, and effect of the delay before adjusting contract dates.