How Should Contractors Plan for Budget Impasses and Continuing Resolutions?
FAR funding clauses control whether performance can start, continue, or stop when appropriations are delayed, and written notices govern liability.
AI-assisted and automatically checked against the linked primary sources.
What do the FAR funding clauses require when appropriations are delayed?
Can contractors keep working after funds run out?
- FAR Subpart 32.7 bars obligations in excess of available funds unless authorized by law.
- A contract may be conditioned on availability of funds, and certain next-fiscal-year service contracts may use the Availability of Funds clause.
- Under 52.232-20, the contractor must give written notice when next-60-day costs are expected to exceed 75 percent of estimated cost.
- Only the contracting officer’s written notice changes the funding status or estimated cost; other notices do not.
Check which funding clause governs the contract and whether the contracting officer has issued the required written notice.
Sources & Citations
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