# Federal Acquisition Regulation; Payment Withholding
> **US Department of Defense** · Final rule. · Published 2005-07-27 · Effective 2005-08-26 · 70 FR 43580
## Document
- **Document number:** 05-14668
- **Category:** other
- **Sub-agency:** US Department of Defense
- **Federal Register citation:** 70 FR 43580
- **CFR reference:** 48 CFR 14
- **Publication date:** 2005-07-27
- **Effective date:** 2005-08-26
- **DOD docket:** FAC 2005-05
## Abstract

The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) have agreed on a final rule amending the Federal Acquisition Regulation (FAR) by removing the mandatory requirement that a contracting officer withhold 5 percent of the payments due under a time-and-materials contract, unless it is necessary to withhold payment to protect the Government's interest or otherwise prescribed in the contract schedule. The final rule also amends FAR guidance that requires the use of a contract modification to withhold payment and to state that the withhold is to be made by the contractor.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2005/07/27/05-14668/federal-acquisition-regulation-payment-withholding)
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