Changes
FAR 52.243-4 requires contractors to promptly document and notify the Contracting Officer of any changes to ensure entitlement to equitable adjustments in cost or schedule.
Overview
FAR 52.243-4, "Changes," is a standard clause for fixed-price construction contracts that outlines the procedures and rights related to changes in the contract work. It allows the Contracting Officer to unilaterally issue written change orders within the general scope of the contract, covering specifications, methods, government-furnished property, or acceleration of work. The clause also addresses how oral or informal orders that result in changes are to be handled, requiring contractors to provide timely written notice if they consider such orders to be change orders. It establishes the process for equitable adjustments to contract price or schedule due to changes, sets deadlines for asserting claims, and limits adjustments for costs incurred before proper notice is given. The clause is designed to ensure both parties understand their rights and obligations when contract changes occur.
Key Rules
- Authority to Issue Change Orders
- The Contracting Officer can issue written change orders at any time, affecting specifications, performance methods, government-furnished property, or work acceleration.
- Recognition of Oral or Informal Orders
- Oral or informal orders from the Contracting Officer that cause changes must be acknowledged by the contractor with written notice to be treated as change orders.
- Equitable Adjustments
- Contractors are entitled to an equitable adjustment in contract price or schedule if a change increases or decreases cost or time, but must provide timely notice and proposals.
- Notice and Proposal Deadlines
- Contractors must assert their right to an adjustment within 30 days of receiving a change order or giving notice of an informal change, unless extended by the Government.
- Limitation on Claims
- No proposals for equitable adjustment are allowed after final payment, and costs incurred more than 20 days before notice are generally not recoverable (except for defective specifications).
Responsibilities
- Contracting Officers: Issue change orders in writing, consider contractor notices of informal changes, and process equitable adjustments and contract modifications.
- Contractors: Provide timely written notice of informal changes, submit adjustment proposals within deadlines, and maintain records of changes and associated costs.
- Agencies: Ensure procedures for change order processing and equitable adjustment are followed, and maintain oversight of contract modifications.
Practical Implications
- This clause provides a formal mechanism for managing changes in construction contracts, protecting both government and contractor interests.
- Contractors must be vigilant in documenting and promptly reporting any changes or instructions that may affect contract scope, cost, or schedule.
- Failure to provide timely notice or assert claims within the specified periods can result in loss of entitlement to adjustments, making compliance critical.