FAR PART 49 GUIDE

How long do I have to file a T4C settlement claim?

Last reviewed: June 2026 · FAR updated March 2026

Under FAR 49.206-3(b), you must submit your settlement proposal within one year of the termination effective date. For commercial item contracts governed by FAR Part 12, the same one-year window applies under FAR 12.403(d)(1).

The clock starts on the termination effective date — the date stated in the termination notice, which may differ from the date you received it. Use the date in the notice, not the date you read it.

The deadline is firm but not absolute. The TCO may grant an extension if you request it in writing before the deadline expires. Extensions are not guaranteed, but they are routinely approved when the contractor is still compiling cost data or negotiating subcontractor settlements. The key: request the extension before the deadline, not after.

If you miss the deadline without an approved extension, the government is not obligated to process your settlement proposal. You may still request late acceptance — TCOs have discretion under FAR 49.206-3(c) — but this is not a right.

The practical implication: do not wait. Once you receive a T4C notice, begin your settlement proposal immediately. Cost data becomes harder to compile as time passes, employees leave, and records are archived.

Use the T4CClaim deadline calculator to find your exact filing date and set a 30-day reminder.

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Not legal advice. T4CClaim generates settlement proposal documents.