FAR 28.106-7 Withholding contract payments
Subsection Federal Acquisition Regulation
Facts
- Citation
- FAR 28.106-7
- Type
- Subsection
- Proposed changes
- 1
- Text as of
- FAC 2026-01
- Official text
- acquisition.gov
Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this subsection.
Text
(a) During contract performance, agencies shall not withhold payments due contractors or assignees because subcontractors or suppliers have not been paid.
(b) If, after completion of the contract work, the Government receives written notice from the surety regarding the contractor’s failure to meet its obligation to its subcontractors or suppliers, the contracting officer shall withhold final payment. However, the surety must agree to hold the Government harmless from any liability resulting from withholding the final payment. The contracting officer will authorize final payment upon agreement between the contractor and surety or upon a judicial determination of the rights of the parties.
(c) For any withholding incident to the labor standards provisions of the contract, see part 22.
Proposed changes
| Proposed rule | Published | Comments |
|---|---|---|
| Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 14, 28, 36, and 52 | Closed Oct 19, 2026No final rule found |
Sections cited
- FAR Part 22 Application of Labor Laws to Government Acquisitions
Quick answers
What is FAR 28.106-7?
FAR 28.106-7 is a subsection of the Federal Acquisition Regulation, titled "Withholding contract payments".
Are changes to FAR 28.106-7 proposed?
One proposed change has no final rule yet.
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