Equitable Adjustment

Equitable Adjustment

The standard changes clause at the basis of this dispute, as set forth in the FAR, authorizes the contracting officer to pay additional funds to contractors in the form of an equitable adjustment. See FAR 52.243 – 4(d). The spirit and purpose of an equitable adjustment, such as that sought by plaintiff here, is to benefit the contractor and make it whole for changes ordered by the government. See N. Am. Constr. Corp. v. United States, 56 Fed.Cl. 73, 78 – 79 (2003) (citing Bruce Constr. Corp. v. United States, 163 Ct.Cl . 97 , 324 F . 2d 516 , 518 ( 1963 )(“equitable adjustments … are simply corrective measures utilized to keep a contractor whole when the Government modifies a contract.”)). “Generally, this provision is the sole contractual clause authorizing additional payments in the event of changes to a contract.” Id. at 79. The changes clause gives the government the unilateral right to order changes in work within the scope of the contract. Thermocor, Inc. v. United States, 35 Fed.Cl. 480, 492 (1996). The changes clause provides for an equitable adjustment if the change increases or decreases the cost or time of performance. Id.

Conner Bros. Const. Co. v. United States, 65 Fed. Cl. 657, 670 (2005).

Updated: July 30, 2018