StacksVerified U.S. regulatory reference

48 CFR §49.109-2

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov
  1. (a)The TCO shall—
    1. (1)Reserve in the settlement agreement any rights or demands of the parties that are excepted from the settlement;
    2. (2)Ensure that the wording of the reservation does not create any rights for the parties beyond those in existence before execution of the settlement agreement;
    3. (3)Mark each applicable settlement agreement with “This settlement agreement contains a reservation” and retain the contract file until the reservation is removed;
    4. (4)Ensure that sufficient funds are retained to cover complete settlement of the reserved items; and
    5. (5)At the appropriate time, prepare a separate settlement of reserved items and include it in a separate settlement agreement.
  2. (b)A recommended format for settlement of reservations appears in 49.603-9.