Change In Your Scope of Work (SOW)? Know What Costs You Can Seek in Your Request for Equitable Adjustment (REA)
November 27, 2013 Leave a comment
Contractors for the United States Government (USG) sometimes encounter unforeseen circumstances that cause major obstructions and/or costs associated with their projects. For example, maybe you have contracted for USG construction work, and half way through laying the foundation on the building, the Contracting Officer changes the type of cement he wants you to use. Or, maybe the Contracting Office suddenly shut down your access to the site for a month, leaving you and your subcontractors and vendors on standby and your materials on the site deteriorating beyond use. Or, maybe, you are starting to clear an area for a parking lot for the building, and you discover the site has landmines that neither you or the USG knew about.
Such incidents cause a contractor much concern because they create additional work that will cost you more money and delay your project delivery schedule.
If you find yourself in such a situation with a USG contract, you do not need to just accept the additional work and cost. Instead, you can ask for more money and/or time to complete the new or additional work. The process for asking for this additional money or time is called a Request for Equitable Adjustment (REA). If you ask the USG Contracting Officer for an REA, the USG may agree to modify the contract to give you more time to do the work and to pay you more money for the additional cost related to the new or additional work.