Government contractors are frequently faced with the situation where they are owed additional time or are entitled to damages from the government on a contract. For example, the government might be responsible for delays to the project schedule. Or it might direct changes to the contract that make it more expensive to perform.
There are generally two methods for the contractor to pursue recovery:
- Filing a Claim under the Contract Disputes Act or
- Submitting a request for equitable adjustment (REA) to the contracting officer.
There are pros and cons to both methods and Contractors should take the time to consider these options carefully before moving forward.
What is the Difference between a Claim and an REA?
Claims and REAs are very similar (but not identical) in both form and function. The basic concept is that the contractor is owed time or money (or both) on a contract and is providing the government with a written request for compensation. The well-drafted Claim or REA will include a basic summary of the contractor’s performance and an easy-to-understand explanation of why it is entitled to the damages sought.
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