What is Equitable Adjustment?

When you're dealing with a government construction contract, and a change in the scope of work being performed occurs, an equitable adjustment may be requested by either you (as the contractor) or the government. Here are two circumstances when this can occur:

Increase in the Scope of Work

If an unexpected condition arises on the construction site that is going to extend the length of the project or increase the cost of completing the project on time, it may be necessary for you as the contractor to request an equitable adjustment. Under such a circumstance, the government would (hopefully) agree to increase the amount they will pay for completion of the project.

Decrease in the Scope of Work

If the government decides that it wants less work completed than the original contract calls for, it may impose an equitable adjustment, allowing it to pay you less for your construction work than the contract stipulates. From a contractor's perspective, this could turn out to be an adverse consequence of an equitable adjustment.

Scope Changes But Government Unfair

But what happens when you clearly deserve an equitable adjustment and the government is unwilling to provide one? That's when it may be time to begin preparing a construction claim. If you're in this situation, contact me at 205-349-3516 for a no-cost conference and opinion.