48 CFR § 36.207 - 36.207 Pricing fixed-price construction contracts.

---
identifier: "/us/cfr/t48/s36.207"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 36.207 - 36.207   Pricing fixed-price construction contracts."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "36.207"
section_name: "36.207   Pricing fixed-price construction contracts."
chapter_number: 1
chapter_name: "FEDERAL ACQUISITION REGULATION"
subchapter_number: "F"
subchapter_name: "SPECIAL CATEGORIES OF CONTRACTING"
part_number: "36"
part_name: "CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "41 U.S.C. 1121(b); 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."
regulatory_source: "48 FR 42356, Sept. 19, 1983, unless otherwise noted."
cfr_part: "36"
---


# 36.207 36.207   Pricing fixed-price construction contracts.

(a) Generally, firm-fixed-price contracts shall be used to acquire construction. They may be priced (1) on a lump-sum basis (when a lump sum is paid for the total work or defined parts of the work), (2) on a unit-price basis (when a unit price is paid for a specified quantity of work units), or (3) using a combination of the two methods.

(b) Lump-sum pricing shall be used in preference to unit pricing except when—

(1) Large quantities of work such as grading, paving, building outside utilities, or site preparation are involved;

(2) Quantities of work, such as excavation, cannot be estimated with sufficient confidence to permit a lump-sum offer without a substantial contingency;

(3) Estimated quantities of work required may change significantly during construction; or

(4) Offerors would have to expend unusual effort to develop adequate estimates.

(c) Fixed-price contracts with economic price adjustment may be used if such a provision is customary in contracts for the type of work being acquired, or when omission of an adjustment provision would preclude a significant number of firms from submitting offers or would result in offerors including unwarranted contingencies in proposed prices.