FAR 52.243—[Reserved]

Changes-Fixed-Price.

FAR 52.243-1, Changes-Fixed-Price, is the standard fixed-price changes clause that gives the Contracting Officer limited authority to direct certain contract changes by written order and requires an equitable adjustment when those changes affect cost or performance time. The clause covers the scope of permissible changes, the specific types of changes allowed under the basic clause and each alternate, the contractor’s duty to continue performance, the process for asserting an adjustment request, the Contracting Officer’s duty to modify the contract, the treatment of obsolete or excess property, and dispute resolution if the parties cannot agree on the adjustment. It also addresses the fact that changes may be made without notice to sureties, if any, and that the 30-day claim period may be varied by agency procedures. The alternates tailor the clause for services, services with supplies, architect-engineer/professional services, transportation, and research and development, reflecting that different contract types need different change authorities. In practice, this clause is the main mechanism for managing within-scope changes on fixed-price contracts without resorting to a new procurement, while preserving the contractor’s right to fair compensation or schedule relief when the Government changes the work.

Changes-Cost-Reimbursement.

FAR 52.243-2, Changes—Cost-Reimbursement, gives the Contracting Officer authority to direct certain unilateral changes within the general scope of a cost-reimbursement contract and sets the process for pricing and documenting the resulting equitable adjustment. The clause covers what kinds of changes may be ordered, including changes to drawings, designs, or specifications for specially manufactured supplies; method of shipment or packing; place of delivery; and, in the alternate versions, changes to services, time of performance, place of performance, construction plans and specifications, and certain research and development requirements. It also explains when the contractor must seek an adjustment, how disputes over the adjustment are handled, and the contractor’s duty to continue performance despite disagreement. A key feature of the clause is that it does not itself increase the estimated cost or funded amount of the contract; any increase must be made by a separate written modification, and until that happens the contractor is limited by the Limitation of Cost or Limitation of Funds clause. In practice, this clause is the main mechanism for managing government-directed changes on cost-reimbursement contracts while preserving orderly pricing, funding control, and contract administration.

Changes-Time-and-Materials or Labor-Hours.

FAR 52.243-3 is the standard Changes clause for time-and-materials (T&M) and labor-hours contracts. It gives the Contracting Officer authority to issue written changes within the contract’s general scope, including changes to the description of services, time of performance, place of performance, drawings/designs/specifications for specially manufactured supplies, method of shipment or packing, place of delivery, and the amount of Government-furnished property. It also explains how the Government must provide an equitable adjustment when a change affects hourly rates, the ceiling price, the time required for performance, or other contract terms and conditions. The clause sets a contractor deadline to assert a right to adjustment within 30 days of receiving the change order, while allowing the Contracting Officer to consider a later proposal before final payment if justified. Finally, it states that disputes over the amount or entitlement to an adjustment are handled under the Disputes clause, but the contractor must continue performance as changed. In practice, this clause is important because it preserves Government flexibility to direct changes while protecting the contractor from uncompensated impacts, and it creates a clear process for pricing, documenting, and resolving change-related adjustments in T&M and labor-hours work.

Changes.

FAR 52.243-4, Changes, is the standard changes clause for many fixed-price construction and other non-commercial contracts. It gives the Contracting Officer authority to direct certain unilateral changes within the general scope of the contract, including changes to specifications, drawings, designs, methods or manner of performance, Government-furnished property or services, and acceleration. It also covers constructive changes—meaning written or oral orders, instructions, interpretations, or determinations that effectively change the work even if they are not labeled a formal change order—so long as the contractor gives timely written notice identifying the order and stating that it is being treated as a change. The clause explains when the contractor is entitled to an equitable adjustment for increased or decreased cost or time, how defective specifications are handled, the contractor’s duty to submit a proposal for adjustment within 30 days unless extended, the ability to include that proposal in the notice for a constructive change, and the absolute bar on claims asserted after final payment. In practice, this clause is the main mechanism for managing scope changes during performance while preserving the contractor’s right to be paid for added work or time and protecting the Government from unauthorized or stale claims.

Changes and Changed Conditions.

FAR 52.243-5, Changes and Changed Conditions, is a contract clause that gives the Contracting Officer limited authority to direct changes to the drawings and specifications within the general scope of the contract and establishes a process for handling differing site conditions. It also requires the contractor to promptly give written notice when it encounters subsurface or latent physical conditions that differ materially from what the contract indicates, or when it encounters unknown unusual physical conditions at the site, before proceeding with the work. If either a directed change or a changed condition affects cost or time, the clause requires an equitable adjustment through a contractor proposal submitted before final payment. The clause further limits the Government’s obligation to adjust for changed conditions unless the required written notice was received or the Contracting Officer waives that notice requirement. Finally, if the parties cannot agree on the adjustment, the matter becomes a dispute under the Disputes clause. In practice, this clause is important because it allocates risk for site conditions, preserves the Government’s ability to make within-scope changes, and creates the documentation and timing rules contractors must follow to protect their right to additional compensation or time.

Change Order Accounting.

FAR 52.243-6, Change Order Accounting, gives the contracting officer a tool to require special accounting when a change or group of related changes is large enough to justify close cost tracking—specifically when the estimated cost exceeds $100,000. The clause addresses when the government may invoke change order accounting, what the contractor must track, how costs must be segregated, what kinds of costs are included or excluded, and how long the records must be maintained. In practice, it is designed to support fair and accurate equitable adjustments by making it easier to identify the direct costs caused by the change versus the costs of unchanged work. It is especially important on contracts where changes may affect labor, materials, subcontracting, or production flow in ways that are difficult to reconstruct later. The clause also ties the accounting requirement to the disputes process, meaning the contractor must keep the records until the parties settle the adjustment or the matter is finally resolved under the Disputes clause. For contractors, this means immediate and disciplined cost segregation; for contracting officers, it means a mechanism to protect the government’s and contractor’s ability to price and settle changes based on reliable data.

Notification of Changes.

FAR 52.243-7, Notification of Changes, is a contract administration clause designed to get potential changes identified and resolved quickly before they turn into larger cost, schedule, or performance disputes. It covers the definition of a Contracting Officer versus a specifically authorized representative (SAR), the contractor’s duty to give prompt written notice when it believes Government conduct has changed the contract, the required contents of that notice, the contractor’s duty to keep performing while the issue is being sorted out, the Government’s duty to respond in writing, and the rules for equitable adjustments when a change is confirmed. It also addresses alleged acceleration, defective drawings/designs/specifications, and the Government’s right to direct disposition of obsolete or excess property created by a change. In practice, this clause is meant to preserve performance continuity while creating a formal paper trail so the parties can decide whether the Government action was actually a change and, if so, how price, schedule, and other terms should be adjusted. It is especially important because failure to give timely notice or to continue performance can limit or eliminate recovery for added cost or time.