As prescribed in 1832.111-70, the contracting officer shall insert the clause at 1852.232-79, Payment for On-Site Preparatory Costs, in solicitations and contracts for construction on a fixed-price basis when progress payments are contemplated and pro rata payment of on-site preparatory costs to the contractor is appropriate.
PAYMENT FOR ON-SITE PREPARATORY COSTS (SEP 1987)
Costs associated with on-site preparatory work (start-up or set-up costs) will be prorated over all work activities of a Critical Path Method (CPM) network or Progress Chart against which progress payments will be sought. Separate payment for on-site preparatory costs will not be made by the Government.
(End of clause
Services ✖ Supplies ✖ Subcontractor ✖ C/R ✖ Time and Materials ✖ Construction ✔ (Applies to solicitations and contracts for construction on a fixed-price basis when progress payments are contemplated and pro rata payment of on-site preparatory costs to the contractor is appropriate.);