Request for Equitable Adjustment FAR 52.243 Lawyers Helping Federal Contractors in ALL STATES to Avoid Costly Mistakes.
Conflict resolution and getting paid for equitable changes, extra work or contract adjustments to your government contract often is met with attempts by the contracting officer to negotiate down any amounts owed.
There are appeal cases before the various boards of contract appeals or Court of Federal Claims where contractors are fiercely met with motions to dismiss the case for lack of subject matter jurisdiction. Small businesses often lose out simply because of improper interpretation of contract terms, not properly articulating differing site conditions, or simply inserting the proper certification language when trying to get a request for equitable adjustment converted to a claim. Whether you are trying to figure out the difference between claim and request for equitable adjustment in a firmed fixed price contract or cost-plus contract, or simply need help preparing your REA documents, we can help.
Request for Equitable Adjustment Legal Services
At Watson & Associates, we provide a wide range of assistance for government changes under FAR 52.243 including:
- Change order and extra work conflict resolution;
- Assessment of contract terms and application of the FAR Changes Clause;
- Firm Fixed Price Contract and Cost Plus Contract REA
- Preparation of REA requests;
- Construction contract change order guidance;
- Equitable adjustment firm fixed price contract matters;
- Disputes with Contract Disputes Act requirements; and
- Contract compliance and regulatory assistance.
- Get a proper assessment of the number of damages for extra work you seek.
- Assess the merits of your request for equitable adjustment versus claim legal requirements 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.
Request for Equitable Adjustment Consulting for Large and Small Business Government Contractors in ALL States.
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 requirements.
- Many REA disputes arise as to who has the authority to issue a change order that warrants contractor payment. In addition, the bulk of disputes occur because the government will argue that the requested changes are part of the contract.
- 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.
Avoid Dangerous Mistakes With Requests for Equitable Adjustments (“REAs”)
A Request for Equitable Adjustment (“REA”) in federal government contracting is a request to the contracting officer to adjust the contract upwards or downwards in price.
On its face, it would appear that an REA is intended to be a non- adverse action whether the parties to the contract negotiate the issues and go on their merry way.
Unfortunately, the various boards of contract appeals are bombarded with litigation for cases that stemmed from submitting FAR 52.243 request for equitable adjustment cases. More unfortunate is the fact that both small businesses and larger DOD contractors would appear to have viable arguments that would normally build a strong case against the government. The following problems should be avoided.
- Not making sure that your request for equitable adjustment also meets the FAR certification requirements for a claim under the Contract Disputes Act.
- Not fully articulating the basis for the upward adjustment and why it was not anticipated in the contract.
- Avoid taking directions from contracting officer representatives. Generally, these people cannot bind the U.S. government.
- Making the mistake to think that interest is allowable under REA rules.
AVOID COSTLY LEGAL MISTAKES WHEN PREPARING REAs
One of the common problems seen in litigation is that companies would initially submit and requests for adjustment and them later try to have it converted to a claim. Federal Acquisition Regulations and the Contract Disputes Act statutory language may not always be easy to understand. Many cases are lost simply because the contractor did not insert the proper Contract Disputes statutory requirements to convert the REA to a claim.
Your submission for an equitable adjust must articulate why the government should pay the amount. Simply submitting the forms and letters serve no real good purpose. When claims amount to the tens of thousands of dollars, you want to make sure that you first understand the legal requirements and the terms and conditions of the contract before submitting your REA.
We help with contracting management and equitable adjustments help from beginning to end: We understand the authority vested in contracting officer representatives versus contracting officer when authorizing extra work. Watson’s law firm provides legal guidance from initial indicators and in the REA preparations stages.
Reputation for getting favorable results: At Watson, our request for equitable adjustment consulting team works 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. As request for equitable adjustment consultant, we have achieved favorable results for many of our customers.
WHAT IS AN EQUITABLE ADJUSTMENT?
In federal government contracting, the various courts have come to some consensus that the definition of FAR 52.243 Request for Equitable Adjustment as “an appropriate modification of the amount due under a contract, or the time required for its performance, because of the issuance of a change order, which is just, fair, and right in consideration of the facts and circumstances of the individual case.” Norair Eng’g Corp., GSBCA No. 1178, 66-1 B.C.A. ¶ 5312. The United States Supreme Court said that the term ‘equitable adjustment,’ as used in a ‘Changes’ clause of the FAR (FAR 52.243-1, 2 & 3) includes not only the cost of the work but the addition of a reasonable and customary allowance for your profit. See U. S. v. Callahan Walker Construction Company, 317 U.S. 56, 61 (1942).
ARE YOU ENTITLED TO AN EQUITABLE ADJUSTMENT?
Not all situations entitle you to an equitable adjustment. However, the FAR makes it clear that government contractors are eligible for different equitable adjustments that are directly related to the performance of their contracts and government action. You can be entitled to an equitable adjustment for a constructive change in the contract, delays or other government caused increases to the cost of performing the contract.
REQUEST FOR EQUITABLE ADJUSTMENT VERSUS CLAIM REQUIREMENTS
Avoid this costly mistake in your contract management approach: without a valid contract change order, many government contractors submit REA packages without any idea of how the contract clauses impact getting paid for the alleged contractor modification.
- FAR 52.243 request for 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 contract change order request in a fashion that still meets the requirements of the Contract Disputes Act of 1978, 41 USC 601-613.
The difference between a claim and FAR equitable adjustment: When attempting dispute resolution for extra work performed, 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.
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 Government Contracts REA Attorneys for Immediate Help
Whether you are submitting a Request for Equitable Adjustment versus claim due to change orders under FAR Part 43 or Construction changes to the scope of work under FAR 52.243, contact our request for equitable adjustment consultants and law firm or call 1-866-601-5518 for immediate help.
Helpful Equitable Adjustment Claim Topics
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GET A FREE INITIAL CONSULTATION
Call us to avoid costly legal mistakes with your FAR 52.243 Request for Equitable Adjustment disputes or federal contract change order claim. 1866-601-5518.