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FAR 32.112-1: What Can a Federal Subcontractor Do When the Prime Has Not Paid?

A subcontractor normally contracts with the prime, not the Government. FAR 32.112-1 still gives contracting officers a defined role when a subcontractor asserts that the prime has not paid according to the agreement.

A federal subcontractor that is unpaid may wonder whether the agency contracting officer can force the prime to pay. The answer is more limited. FAR 32.112-1 permits the contracting officer to examine certain payment and certification issues and provides specific administrative responses, but it does not make the Government a party to the subcontract.

This route should be evaluated alongside the subcontract's dispute process, payment-bond rights on qualifying construction projects, state-law remedies, and direct discussions with the prime.

The contracting officer may examine nonpayment assertions

FAR 32.112-1 allows a contracting officer, after a subcontractor or supplier asserts nonpayment, to determine whether the prime has made payments in accordance with the subcontract or applicable construction prompt-payment requirements and whether certain prime payment certifications are accurate.

Official source: FAR 32.112-1 — Subcontractor Assertions of Nonpayment.

The remedies are administrative, not a direct Government payment claim

If the contracting officer finds noncompliance, the FAR permits actions such as encouraging timely payment or, when authorized by applicable clauses, reducing or suspending progress payments to the prime. An inaccurate material payment certification can trigger administrative or other remedial action.

Build the factual package before escalating

  • Signed subcontract or purchase order and payment terms.
  • Invoices, approvals, and dates submitted.
  • Evidence of satisfactory performance or acceptance.
  • Prime correspondence explaining any withholding, rejection, or dispute.
  • Amounts paid and unpaid by invoice.
  • Relevant retainage, pay-if-paid, bond, release, and dispute clauses.

Do not let an escalation destroy other deadlines

Contacting the prime or contracting officer does not necessarily extend a Miller Act notice period, lawsuit deadline, contractual claim deadline, or dispute notice. Track those paths separately so an effort to resolve payment informally does not cause another remedy to expire.

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