2 FAR Clauses you May Not Want to Accept in your Subcontract

When you are ready to review your prime contractor’s corporate flowdowns, pay particular attention if the prime is trying to flow the Alt 1 version of the Government Property clause (FAR 52.245-1 Alt I) to your subcontract. This version assigns the risk of loss to you even though the prime contractor might not be subject to the same requirement if the prime contract only contains the basic version of the clause. In addition, be cautious when the prime contractor tries to flow down the Termination for Convenience, 52.249-2, clause to your subcontract. This clause is not a mandatory flowdown and it can create a conflict with your general terms and conditions, granting the prime contractor greater rights than those that you have painfully negotiated as part of your general termination provision. For more detail, please go to our site at www.farclause.com.


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