3.5 Contract Change

Question 1

Supplemental Agreement

Answer 1

Contract mod based on prior agreement of parties regarding the
change

Incorporates equitable adjustment to contract cost and/or
schedule as a result of the change

Question 1

Three types of contract modifications

Answer 1

Supplemental Agreement

Change Order

Constructive Change

Question 2

Change Order

Answer 2

Written order issued by CO directing contractor to make a change without prior agreement

Creates “undefinitized” Government liability

Contractor may be entitled to equitable adjustment

Authorized by the “Changes Clause”

Limited to:
- Drawings, designs, or specifications
- Method of shipping or packing
- Increase or decrease in Govt Furnished Property
- Place of delivery

FAR 52.243- 1&2

Question 3

Constructive Change

Answer 3

Oral or written act (or failure to act) by an authorized Government official in position of authority construed by contractor as having same effect as a written change order (existing contract)

Must involve:
‐ Order: improper word or deed by Government (could be “inaction”)
‐ Acted upon: required contractor effort that was not part of the contract (did not “volunteer”)

Must Result in:
‐ Increased cost: change in performance beyond original contract
requirement

Question 4

Unauthorized Commitment

Answer 4

an agreement that is not binding solely because the government representative who made it lacked the authority to enter into that agreement on behalf of the government (both existing or no contract)

An unauthorized commitment resulting from a constructive change requires ratification