Requests for Equitable Adjustments
Handling Equitable Adjustments
By Theodore Watson – Government Contract Attorney
Government contract clauses provide for equitable adjustmentswhen there are scope changes, delays and other unforeseeable circumstances. Oftentimes, a contractor’s request for equitable relief falls on deaf ears or the agency denies equitable relief claims. Having an experienced government contract attorney that understands this sometimes complex problem can be the answer. If you are performing a construction contract or other service, equitable adjustment claims often arise.
When you bid for a government contract, part of the award encompasses a Change Clause in the Federal Acquisition Regulations ( FAR) . An aspect of the clause entails equitable adjustments which includes cost and time elements.
In sum, a government contractor is entitled to equitable adjustments whenever a change order decreases or increases the contact’s time or cost. Typically the adjustment is made after the change since actual amounts are not known. Having a government contract attorney to act on your behalf can be beneficial because of the nuances that can occur. You adjustments must be carefully scrutinized to ensure that you get all of your entitlements.
Change orders can be initiated by either the contractor of the government. Then, the parties or their attorneys discuss the matters and exchange pertinent information. Once discussions with the government procurement officials have taken place, the result is generally a equitable adjustment in the cost.
Although government contracts generally favor bilateral changes, the government can still unilaterally change the contract scope. As this occurs, the scope of the change is articulated, the contractor will then account for cost of changes, and then enter into discussions with the government.
The Court of Claims have redefined equitable adjustments as the goal of keeping the contractor whole when the government modifies the contract. See Bruce Construction Co. v. United States.
If you are a construction contractor or other government contract service provider, Contact us for additional information or call our firm at 720.941.7200 or 1866-601-5518 for immediate representation.
