Low RiskFARGeneral

52.232-7 — Payments under Time-and-Materials and Labor-Hour Contracts

Researched by the BidStride Research Team

What This Clause Requires

Establishes the payment mechanism for T&M and labor-hour contracts including hourly rate ceilings, material allowances, and invoice requirements.

Official Regulation Text

See 48 CFR 52.232-7 for the full regulatory text.

Source: eCFR, 48 CFR 52.232-7

Compliance Checklist

  • Invoice at the prescribed hourly rates for labor categories
  • Support material costs with receipts if over $150
  • Do not exceed the contract ceiling without modification

Flow-Down to Subcontractors

No flow-down required

This clause applies only to the prime contract and does not need to be flowed down to subcontractors.

BidStride automatically scans your RFPs for 52.232-7

Stop hunting through solicitations manually. BidStride identifies every FAR and DFARS clause in your RFP, flags risk level, and surfaces compliance requirements before you submit your bid.

This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.