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Conflict resolution and getting paid for equitable changes or contract adjustments to your contract often is met with attempts to negotiate down any amounts owed. Whether you are trying to figure out the difference between claim and request for equitable adjustment or simply need help preparing your documents, we can help.
Submitting a change order Request for Equitable Adjustment (REA) under the FAR Changes Clause requires some level of understanding the various contract clauses.
With law offices located in Washington, DC and Colorado, Watson & Associates, LLC’s help federal contractors in all states. Clients use our broad federal contracting experience to sift through the various legal nuances associated with getting payment for REA and changer order requirements.
Many disputes arise as to who has the authority to issue a change order that warrants contractor payment. At Watson & Associates, LLC our REA attorneys help to sift through the legal issues and guide government contractors to providing better FAR equitable adjustment requests.
Conflict Resolution & Request for Equitable Adjust REA & Change Order Services
At Watson & Associates, we provide a wide range of assistance for government changes including:
- Change order conflict resolution;
- Assessment of contract terms and application of the FAR Changes Clause;
- Preparation of REA requests;
- Disputes with Contract Disputes Act requirements; and
- Contract compliance and regulatory assistance.
- Get a proper assessment in the amount of damages you seek.
- Assess the merits of your Request for Equitable Adjustment or Claim before wasting valuable resources.
- Learn from lawyers and consultants that have decades of government contracting experience.
To speak with an attorney, call 1-866-601-5518. FREE INITIAL CONSULTATION.
REA help from beginning to end: We understand the authority vested in contracting officer representatives versus contracting officer. Watson’s law firm provides legal guidance from initial indicators and in the REA preparations stages.
We gain favorable outcomes for our clients: At Watson, our FAR equitable adjustment attorneys work with construction contractors and service contract clients to develop a feasible approach to getting paid for legitimate contract modification requirements under the FAR changes clause. We have achieved favorable results for many of our customers.
A FAR equitable adjustment in federal government contracting means that per the changes clause, the contracting officer can adjust the contract terms and conditions in order to pay the contractor for any changes made per government action or for work not anticipate in the original agreement.
- Equitable means adjusting the contract for the allowance of profit
- If the clause provides for contract adjustments without profit then the equitable meaning has changed. Such a clause is not an “equitable adjustment.”
FAR 43.2 Changer Order Process
When the original scope of work has changed, government contractors should immediately submit a request for equitable adjustment claim and change order request per FAR 43.2. Each contract includes a changes clause that allows the CO to make unilateral changes within the general scope of the contract.
A critical mistake for contractors to avoid when it comes to a contract change order is to make sure that it does not start performing changed work unless from persons not authorized to bind the government. The “equitable meaning” when applied to a request for equitable adjustment, may not allow you to get paid in court. At Watson, our REA attorneys can help to sort out the myth versus reality when dealing with change order requests.
Did you know that: The Cost Accounting Standards ( CAS) clause also allows the contractor or the Government to seek an equitable adjustment under the FAR for any increased costs incurred due to a required change in the contractor’s established accounting practices that were made to comply with future modifications to the CAS? See FAR 52.230-2(a)(4)(i).
Did you know that: If there is any conflict between the CAS and the FAR as to an issue of allocability, the CAS governs? See Boeing N. Am., Inc. v. Roche, 298 F.3d 1274, 1283 (Fed. Cir. 2002).
FAR Request for Equitable Adjustment (REA) Also a CDA Claim?
Avoid this costly mistake: without a valid change order, many government contractors submit REA packages without any idea of how the contract clauses impact getting paid for the alleged contractor modification.
- A FAR equitable adjustment without specific elements, does not automatically meet the definition of a Contract Disputes Act claim.
- Under FAR 33.207 (c) when the claim amount exceeds $100,000, and it must be submitted to the Contracting Officer in a way that clearly provides the factual, technical, and legal basis for an equitable adjustment to the contract.
If the claim does not exceed $100,000 or not, Watson’s government contract lawyers will help to develop the alleged change order request in a fashion that still meets the requirements of the Contract Disputes Act of 1978, 41 USC 601-613.
Difference – REA Versus a Claim
The difference between claim and FAR equitable adjustment: An REA does not require a contractor’s certification under the Contract Disputes Act. Another difference between a claim and an equitable adjustment is that if you submit the additional work as a “claim,” government contractors are entitled to the interest, but not claim preparation costs. If you submit additional work via a request for equitable adjustment, you are entitled to compensation for claim preparation costs, but not interest.
When is a Request for Equitable Adjustment Allowed Under FAR Changes Clause?
There are various contract clauses that provide for an equitable adjustment to the contract. They include FAR 52.211-18, Termination for Convenience, FAR 52.249-2, Differing Site Conditions, FAR 52.236-2, Suspension of Work, FAR 52.242-14, and Changes – Fixed-Price, FAR 52.243-1
What damages do contractors get? As a general rule, a contractor modification that leads to a request for equitable adjustment allows the contractor to recover to his actual costs, plus a reasonable profit (except for suspensions), overhead, and bond.
Tip: Additional costs must be allowable, allocable, and reasonable.
Tip: When deciding to file an REA adjustment for construction change order, the Changes Clause at FAR 52.243-4 requires that only costs incurred within 20 days from the time that the Contractor gives notice are recoverable.
Call Our FAR REA Attorneys for Immediate Help
Whether you are submitting a Request for Equitable Adjustment due to change orders under FAR Part 43 or Construction changes to the scope of work under FAR 52, contact our law firm or call 1-866-601-5518 for immediate help.
Nationwide FAR Request for Equitable Adjustment Legal Services
Our federal government contract attorney services cover all FAR request for equitable adjustment claim (REA) matters in all states. We assist federal small businesses and large DoD contractors in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, U.S. Virgin Islands, Utah, Vermont, Virginia, Washington, Washington, DC, West Virginia, Wisconsin, and Wyoming.
Cities in which our FAR equitable adjustment services help federal government contractors include Anchorage, AK; Atlanta, GA; Austin, TX; Chicago, IL; Colorado Springs, CO; Dallas, TX; Denver, Colorado; Indianapolis, IN; Las Vegas, NV; Los Angeles, CA; Miami, FL; Philadelphia, PA; San Antonio, TX; San Diego, CA; San Francisco, CA; San Jose, CA; Santa Clara, CA; and Tampa, FL.
Helpful FAR Equitable Adjustment Claim Topics
|Read more relevant information about Equitable Adjustments.|
Call us to avoid costly legal mistakes with a change order or FAR request for equitable adjustment claim.