Notification of contract changes

Overview

This section establishes the requirement for contractors to promptly notify the Government in writing when they believe an informal or "constructive" change to the contract has occurred. It ensures the Government has the opportunity to officially recognize, cancel, or deny the change before significant costs are incurred.

Key Rules

• Contractor Obligation: If a contractor identifies a change not formally documented by the Contracting Officer, they must provide written notification "as soon as possible."
• Government Response Options: Upon receipt of notification, the Government must evaluate the claim and:
  1. Confirm the change, provide performance direction, and arrange funding;
  2. Countermand (cancel) the change; or
  3. Notify the contractor that no change has actually occurred.
• Regulatory Implementation: The policy is codified in the contract through the mandatory clause at 52.243-7, Notification of Changes.
• Scope of Notification: The requirement specifically addresses "Government conduct" that a contractor considers an unauthorized change to the contract terms.

Practical Implications

• Risk Mitigation: This rule prevents "constructive changes" from lingering, protecting the Government from unexpected claims and protecting the contractor from performing uncompensated work.
• Administrative Burden: Contractors must maintain rigorous communication and documentation standards to ensure they do not waive their right to an equitable adjustment by failing to notify the Contracting Officer promptly.