Recovery for “Constructive Changes” under FAR Commercial Products and Services Clause – What Should a Contractor Do?

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As Government contractors know, under each of the Federal Acquisition Regulation (FAR) Changes clauses, e.g., FAR 52.243-1 – FAR 52.243-4, the Government can unilaterally change the terms of the contract. Such a constructive change under these Changes clauses is subject to a Request for Equitable Adjustment (REA) or Contract Disputes Act (CDA) claim, but the contractor has a duty to proceed with contract performance. Thus, when the Government changes the terms of the contract, the contractor can seek reimbursement by submitting an REA or a CDA claim. Even if the Government does not issue a written change or order, the Government’s direction may still be considered a “change” under the FAR Changes clauses, and the contractor may seek reimbursement of additional time or money associated with the change. This is considered the “Constructive Change” doctrine.

Commercial Products and Services Changes Clause Requires Written Agreement

However, the changes provision of the Contract Terms and Conditions – Commercial Products and Commercial Services… Read more

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