FAR 11.702—Construction contracts.
Plain-English Summary
FAR 11.702 addresses how to handle variations in estimated quantities for unit-priced items in construction contracts. It explains when a contract may allow estimated quantities to vary, when either party can demand an equitable adjustment in price, and how the 15 percent threshold works for increases or decreases in actual quantities. It also covers the contractor’s right to request a time extension when the quantity change delays completion, the requirement to submit that request in writing within 10 days from the start of the delay period, and the contracting officer’s authority to extend that deadline before final settlement. In practice, this section is meant to keep construction pricing fair when actual field quantities differ from estimates, while also creating a clear process for adjusting both price and schedule based on the facts of the job.
Key Rules
Unit-price quantity variation
Construction contracts may include estimated quantities for unit-priced items and allow those quantities to vary from the estimate. This recognizes that actual field conditions may differ from bid assumptions.
Fifteen percent adjustment threshold
If the actual quantity of a unit-priced item varies by more than plus or minus 15 percent from the estimated quantity, either the Government or the contractor may demand an equitable adjustment in the contract price. The adjustment is intended to fairly reflect the impact of the overrun or underrun.
Price adjustment is mandatory on demand
Once the 15 percent threshold is exceeded, an equitable adjustment in price must be made when demanded by either party. The rule is not discretionary if the threshold and demand requirements are met.
Time extension for delay
If the quantity variation increases the time needed to complete the work, the contractor may request an extension of the completion time. The request must be tied to the actual delay caused by the quantity change.
Written request within 10 days
The contractor must submit the time-extension request in writing within 10 days from the beginning of the period of delay. This deadline is strict unless the contracting officer extends it.
Late extension of filing period
The contracting officer may extend the 10-day filing period, but only before final settlement of the contract. This gives the Government limited flexibility to accept a late request when appropriate.
Fact-based contracting officer decision
The contracting officer must determine the facts and grant any schedule adjustment that the findings justify. The extension is based on evidence of actual delay, not simply on the existence of a quantity change.
Responsibilities
Contracting Officer
Determine whether the quantity variation exceeds the plus-or-minus 15 percent threshold, process and negotiate equitable price adjustments when demanded, evaluate contractor requests for time extensions, decide whether to extend the 10-day filing period before final settlement, and make schedule adjustments supported by the facts.
Contractor
Monitor actual quantities against estimated quantities, demand an equitable price adjustment when the threshold is exceeded if beneficial, and submit any request for a completion-time extension in writing within 10 days from the start of the delay period unless the deadline is extended.
Government
When actual quantities materially differ from estimates, it may demand an equitable price adjustment just as the contractor may. The Government also relies on the contracting officer to verify the facts and ensure the contract price and schedule reflect the actual work performed.
Practical Implications
This rule is especially important on construction jobs with uncertain quantities, such as excavation, paving, or utility work, where estimates can be off significantly.
The 15 percent threshold is a key trigger; parties should track quantities closely during performance so they do not miss the point at which an adjustment becomes available.
The 10-day written request deadline for time extensions is a common pitfall. Contractors should document delay impacts immediately and not wait until the end of the job.
Price and time are separate issues: a quantity change may justify an equitable adjustment in price, a schedule extension, or both, depending on the facts.
Contracting officers should base decisions on measured quantities and documented delay, not assumptions, and should consider whether to extend the filing deadline before final settlement if a late request is otherwise justified.
Official Regulatory Text
Construction contracts may authorize a variation in estimated quantities of unit-priced items. When the variation between the estimated quantity and the actual quantity of a unit-priced item is more than plus or minus 15 percent, an equitable adjustment in the contract price shall be made upon the demand of either the Government or the contractor. The contractor may request an extension of time if the quantity variation is such as to cause an increase in the time necessary for completion. The contracting officer must receive the request in writing within 10 days from the beginning of the period of delay. However, the contracting officer may extend this time limit before the date of final settlement of the contract. The contracting officer shall ascertain the facts and make any adjustment for extending the completion date that the findings justify.