52.243-1 Changes-Fixed-Price
Source: FAR 52.243-1 on acquisition.gov
FAR 52.243-1 allows the government to unilaterally change certain contract terms in fixed-price contracts, but contractors must act quickly to claim equitable adjustments or risk losing compensation.
Overview
FAR 52.243-1, Changes-Fixed-Price, is a standard clause used in fixed-price contracts that allows the Contracting Officer to unilaterally make certain changes within the general scope of the contract. These changes can include modifications to drawings, designs, specifications, methods of shipment or packing, and place of delivery. If such changes affect the cost or time required for performance, the contractor is entitled to an equitable adjustment in price, schedule, or both. The clause also outlines the process for asserting a claim for adjustment, the handling of obsolete property, and the resolution of disputes. Several alternates tailor the clause for services, architect-engineer, transportation, and research and development contracts, specifying what aspects can be changed and how adjustments are handled.
Key Rules
- Unilateral Changes by Contracting Officer
- The Contracting Officer can issue written orders to change certain contract elements within the general scope, without notifying sureties.
- Equitable Adjustments
- If changes impact cost or schedule, the contractor is entitled to an equitable adjustment, and the contract must be modified accordingly.
- Timely Assertion of Adjustment Claims
- Contractors must assert their right to an adjustment within 30 days of receiving the change order, unless the Contracting Officer allows a later submission before final payment.
- Disposition of Obsolete Property
- The Contracting Officer may direct how to dispose of property made obsolete by the change.
- Dispute Resolution
- Disagreements over adjustments are handled under the contract's Disputes clause, but work must continue as changed.
- Alternates for Specific Contract Types
- Alternate versions modify the clause for services, architect-engineer, transportation, and R&D contracts, specifying different changeable elements and procedures.
Responsibilities
- Contracting Officers: Issue written change orders, determine equitable adjustments, modify contracts, and resolve disputes.
- Contractors: Comply with change orders, submit adjustment claims within required timeframes, and follow directions for obsolete property.
- Agencies: Ensure proper application of the clause and adherence to agency-specific procedures for the 30-day claim period.
Practical Implications
- This clause provides flexibility for the government to adapt contract requirements as needed, while protecting contractors' rights to fair compensation for changes. Contractors must be vigilant in tracking changes and timely in asserting claims. Failure to follow procedures can result in lost compensation or disputes. Understanding the applicable alternate is critical for compliance in specialized contract types.
As prescribed in 43.205(a)(1), insert the following clause. The 30-day period may be varied according to agency procedures.
Changes-Fixed Price (Aug 1987)
(a) The Contracting Officer may at any time, by written order, and without notice to the sureties, if any, make changes within the general scope of this contract in any one or more of the following:
(1) Drawings, designs, or specifications when the supplies to be furnished are to be specially manufactured for the Government in accordance with the drawings, designs, or specifications.
(2) Method of shipment or packing.
(3) Place of delivery.
(b) If any such change causes an increase or decrease in the cost of, or the time required for, performance of any part of the work under this contract, whether or not changed by the order, the Contracting Officer shall make an equitable adjustment in the contract price, the delivery schedule, or both, and shall modify the contract.
(c) The Contractor must assert its right to an adjustment under this clause within 30 days from the date of receipt of the written order. However, if the Contracting Officer decides that the facts justify it, the Contracting Officer may receive and act upon a proposal submitted before final payment of the contract.
(d) If the Contractor’s proposal includes the cost of property made obsolete or excess by the change, the Contracting Officer shall have the right to prescribe the manner of the disposition of the property.
(e) Failure to agree to any adjustment shall be a dispute under the Disputes clause. However, nothing in this clause shall excuse the Contractor from proceeding with the contract as changed.
(End of clause)
Alternate I (Apr 1984). If the requirement is for services, other than architect-engineer or other professional services, and no supplies are to be furnished, substitute the following paragraph (a) for paragraph (a) of the basic clause:
(a) The Contracting Officer may at any time, by written order, and without notice to the sureties, if any, make changes within the general scope of this contract in any one or more of the following:
(1) Description of services to be performed.
(2) Time of performance (i.e., hours of the day, days of the week, etc.).
(3) Place of performance of the services.
Alternate II (Apr 1984). If the requirement is for services (other than architect-engineer services, transportation, or research and development) and supplies are to be furnished, substitute the following paragraph (a) for paragraph (a) of the basic clause:
(a) The Contracting Officer may at any time, by written order, and without notice to the sureties, if any, make changes within the general scope of this contract in any one or more of the following:
(1) Description of services to be performed.
(2) Time of performance (i.e., hours of the day, days of the week, etc.).
(3) Place of performance of the services.
(4) Drawings, designs, or specifications when the supplies to be furnished are to be specially manufactured for the Government, in accordance with the drawings, designs, or specifications.
(5) Method of shipment or packing of supplies.
(6) Place of delivery.
Alternate III (Apr 1984). If the requirement is for architect-engineer or other professional services, substitute the following paragraph (a) for paragraph (a) of the basic clause and add the following paragraph (f):
(a) The Contracting Officer may at any time, by written order, and without notice to the sureties, if any, make changes within the general scope of this contract in the services to be performed.
(f) No services for which an additional cost or fee will be charged by the Contractor shall be furnished without the prior written authorization of the Contracting Officer.
Alternate IV (Apr 1984). If the requirement is for transportation services, substitute the following paragraph (a) for paragraph (a) of the basic clause:
(a) The Contracting Officer may at any time, by written order, and without notice to the sureties, if any, make changes within the general scope of this contract in any one or more of the following:
(1) Specifications.
(2) Work or services.
(3) Place of origin.
(4) Place of delivery.
(5) Tonnage to be shipped.
(6) Amount of Government-furnished property.
Alternate V (Apr 1984). If the requirement is for research and development and it is desired to include the clause, substitute the following paragraphs (a)(1) and (a)(3) and paragraph (b) for paragraphs (a)(1) and (a)(3) and paragraph (b) of the basic clause:
(a) ***
(1) Drawings, designs, or specifications.
(3) Place of inspection, delivery, or acceptance.
(b) If any such change causes an increase or decrease in the cost of, or time required for, performing this contract, whether or not changed by the order, the Contracting Officer shall make an equitable adjustment in-
(1) The contract price, the time of performance, or both; and
(2) Other affected terms of the contract, and shall modify the contract accordingly.