Current through October 31, 2024
Section 49.109-2 - Reservations(a) The TCO shall- (1) Reserve in the settlement agreement any rights or demands of the parties that are excepted from the settlement;(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) Mark each applicable settlement agreement with "This settlement agreement contains a reservation" and retain the contract file until the reservation is removed;(4) Ensure that sufficient funds are retained to cover complete settlement of the reserved items; and(5) At the appropriate time, prepare a separate settlement of reserved items and include it in a separate settlement agreement.(b) A recommended format for settlement of reservations appears in 49.603-9.