Regulations last checked for updates: Oct 18, 2024

Title 48 - Federal Acquisition Regulations System last revised: Oct 10, 2024
49.406 - 49.406 Liquidation of liability.

The contract provides that the contractor and the surety are liable to the Government for resultant damages. The contracting officer shall use all retained percentages of progress payments previously made to the contractor and any progress payments due for work completed before the termination to liquidate the contractor's and the surety's liability to the Government. If the retained and unpaid amounts are insufficient, the contracting officer shall take steps to recover the additional sum from the contractor and the surety.

authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.
source: 48 FR 42447, Sept. 19, 1983, unless otherwise noted.
cite as: 48 CFR 49.406