Friday, December 15, 2017

SUSPENSION VERSUS CHANGES CLAUSE


The Suspension clause says in pertinent part:  “However, no adjustment shall be made under this clause . . . for which an equitable adjustment is provided for or excluded under any other term or condition of this contract.”  FAR 52.243-4, Changes, says the contracting officer may make changes in the work including changes in the method or manner of performance of the work. 

In addition, any other order shall be treated as a change provided proper notice is given by the contractor to the contracting officer. 

The Changes clause provides for an equitable adjustment in the cost of or the time required for performance of any part of the work under the contract, whether changed or not.  The contracting officer is obliged to make the equitable adjustment and modify the contract in writing.

Moreover, there is a time-honored constructive change based on the duty of the government of good faith and fair dealing.  Under this constructive change theory, the government may breach its duty to cooperate and to not interfere in the contractor’s performance.  Interference in performance thus is compensable under the Changes clause.

In conclusion, the Changes clause takes precedence over the Suspension clause based on the clear language in the Suspension clause which precludes action under the Suspension clause when the Changes clause is also present in the contract.

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