Previous posts on this blog have talked about how construction firms working on federal projects can submit what is called a request for an equitable adjustment.
Requests for equitable adjustments are useful in situations where the government's actions or omissions with respect to the project wind up costing the contractor money that the contractor did not and could not have anticipated at the time of making the original bid. If a request is granted, then the government will, in the interest of fairness, allow the contractor to charge extra for its additional expense.
As is often the case when dealing with the federal government, contractors wishing to submit a request for an equitable adjustment must make sure that they do so using the proper procedures. Specifically, federal regulations set out what a request for an equitable adjustment must include.
In all cases, the contractor must provide an understandable and detailed breakdown of its increased costs, as well as an explanation for any related need for an extension on the project's deadline.
When the contractor seeks an adjustment of more than $100,000, then the contractor will have to provide additional details in its request. For example, the contractor will need to explain in detail to what extent its additional cost can be attributed to the government's choices.
Even requests for relatively modest equitable adjustments can be complicated to manage. For this and other reasons, many contractors who work in and around Massachusetts will often rely on an experienced construction law attorney for assistance in requesting an equitable adjustment. In addition to making sure one's request is properly drafted, the attorney can also help negotiate any disputes and review the final agreement.