FAR 43.104—Notification of contract changes.
Plain-English Summary
FAR 43.104 explains what happens when a contractor believes the Government has directed or may have directed a contract change that has not been formally identified in writing and signed by the contracting officer. The section requires the contractor to give written notice as soon as possible so the Government can decide whether the conduct is actually a change, stop or correct the alleged change, or confirm that no change occurred. It also ties this policy to the Notification of Changes clause at FAR 52.243-7, which is the contract clause that implements the notice process and allocates responsibilities between the contractor and the Government. In practice, this section is about preserving the integrity of the written change process, preventing misunderstandings about scope, schedule, or cost, and creating a prompt record that can support funding, direction, or dispute resolution. For contractors, it is a protection against silently absorbing extra work; for contracting officers, it is an early warning system that helps manage contract administration before performance drifts outside the written contract.
Key Rules
Written notice is required
If the contractor believes the Government has caused or may cause a change that is not already identified in a written, signed contract modification, the contractor must notify the Government in writing as soon as possible. Oral complaints or informal discussions are not enough to trigger the process described here.
Prompt notice protects both sides
The purpose of the notice is to let the Government quickly evaluate the alleged change while the issue is still fresh. Early notice helps avoid disputes over what was said or done, and it gives the Government a chance to manage cost, schedule, and performance impacts.
Government must evaluate the allegation
Once notified, the Government may confirm that a change exists and direct how performance should proceed, countermand the alleged change, or state that no change is considered to have occurred. This gives the contracting officer a structured way to respond instead of leaving the contractor uncertain.
Formal change authority still matters
The section reinforces that a contract change should be identified in writing and signed by the contracting officer. Contractor notice does not itself authorize a change; it only alerts the Government that the contractor believes one has occurred.
Notification of Changes clause implements the policy
FAR 52.243-7 is the contract clause prescribed by FAR 43.107 that carries this policy into the contract. That clause spells out the contractor’s duty to notify and the parties’ responsibilities after notice is given.
Responsibilities
Contractor
Monitor Government conduct for possible changes, and when the contractor believes the Government has effected or may effect an unpriced or unsigned change, provide written notice to the Government as soon as possible. The contractor should clearly identify the conduct at issue so the Government can evaluate it.
Contracting Officer
Review the contractor’s written notice, determine whether the conduct is a change, and then either confirm the change and direct further performance, countermand the conduct, or advise that no change has occurred. The contracting officer also must manage any resulting funding, direction, or contract administration actions.
Government/Agency
Use the notice process to promptly assess alleged changes, avoid unauthorized direction, and ensure that any actual change is properly documented and funded. The agency must support the contracting officer in resolving the issue and maintaining contract control.
Practical Implications
Contractors should not wait until the end of performance to raise a change issue; delay can make it harder to prove what happened and can complicate recovery of time or money.
The biggest pitfall is treating informal direction from a COR, program office, or technical representative as if it were automatically binding. If the direction is outside the written contract and not signed by the contracting officer, the contractor should consider using the notice process.
Contracting officers should treat contractor notices as a prompt to investigate, not as a nuisance. A quick response can prevent unauthorized work, funding problems, and later claims.
This section helps create a paper trail. Clear written notice can be critical evidence if the parties later dispute whether a constructive change occurred.
The clause and this section do not replace the need for a formal modification when the Government actually intends to change the contract. They are a safeguard to make sure suspected changes are identified and handled correctly before performance moves too far ahead.
Official Regulatory Text
(a) When a contractor considers that the Government has effected or may effect a change in the contract that has not been identified as such in writing and signed by the contracting officer, it is necessary that the contractor notify the Government in writing as soon as possible. This will permit the Government to evaluate the alleged change and- (1) Confirm that it is a change, direct the mode of further performance, and plan for its funding; (2) Countermand the alleged change; or (3) Notify the contractor that no change is considered to have occurred. (b) The clause at 52.243-7 , Notification of Changes, which is prescribed in 43.107 - (1) Incorporates the policy expressed in paragraph (a) of this section; (2) Requires the contractor to notify the Government promptly of any Government conduct that the contractor considers a change to the contract, and (3) Specifies the responsibilities of the contractor and the Government with respect to such notifications.