Changes & Termination (Parts 43 / 49)

FAR 52.243-1

Changes—Fixed-Price

The classic Government 'changes' clause — gives the Contracting Officer the unilateral right to direct changes within the general scope of the contract (drawings, design specifications, method of shipment, place of delivery, etc.). The contractor must perform; the equitable adjustment (price, schedule, or both) is settled afterward through Request for Equitable Adjustment or claim. This is distinct from the bilateral-only changes regime under 52.212-4 for commercial items.

FAR / DFARS Part
FAR Part 43 — Contract Modifications
Prescribed By
FAR 43.205(a) — Required in fixed-price supply contracts (non-commercial). Other variants exist for cost-reimbursement, T&M, and services.
Flow-down to Subcontracts

Not flowed down (clause governs Government-prime relationship).

What this clause requires

  • 1Contractor must perform Government-directed changes within the general scope of the contract.
  • 2Contractor must submit a written request for equitable adjustment within 30 days of the change order receipt (paragraph (d)).
  • 3Final adjustment may include price, delivery schedule, or both.
  • 4If the parties cannot agree on the adjustment, the matter proceeds as a claim under the Contract Disputes Act.
  • 5Constructive changes (where the Government's conduct effectively directs a change without a formal mod) can entitle the contractor to adjustment.

When this clause applies

Fixed-price non-commercial supply contracts under FAR Part 43. Alternates I-IV cover services, T&M, etc.

Alternates

Alt IServices (no supplies).
Alt IIServices and supplies.
Alt IIIConstruction (use 52.243-4 instead — different clause).
Alt IVResearch and development.

Common pitfalls

!Missing the 30-day REA notice — paragraph (d) bars the claim if the request is late, absent waiver.
!Performing the change without protest, then trying to charge for it later — without a documented Request for Equitable Adjustment, the constructive-change argument is weaker.
!Confusing 52.243-1 (unilateral changes allowed) with 52.212-4 (bilateral changes only) — critical contractual distinction.
!Forgetting that 'general scope' is the limit — the Government cannot direct work outside the scope even under 52.243-1; that would be a cardinal change requiring a separate procurement.

Proposal-team checklist

  • ☐Build a change-management runbook that triggers a 30-day REA notice clock on every change order receipt.
  • ☐Train PMs to distinguish constructive changes (e.g., Government interpretations more burdensome than contract) and document immediately.
  • ☐Reserve a contingency line for known scope-risk areas — change-driven labor / material cost is rarely fully recovered.
  • ☐Establish escalation thresholds — REAs > certain dollar limits require executive review.

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FAQ

What is a constructive change?

Government conduct (interpretations, directives, schedule changes) that effectively directs work beyond the contract without a formal modification. The contractor can recover equitable adjustment, but must document promptly and assert through REA / claim.

Can the Government unilaterally cut my work?

Yes, within the general scope. The equitable adjustment may reduce price or schedule. For full descopings, the Government may need to terminate for convenience instead.

Related clauses

FAR 52.212-4
Contract Terms — Commercial
FAR 52.249-2
Termination for Convenience (Fixed-Price)
FAR 52.249-8
Default (Fixed-Price Supply/Service)

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Reference content based on the Federal Acquisition Regulation and DFARS as of June 2026. Always verify the current clause text at acquisition.gov before relying on it for an actual submission. Educational reference; not legal advice.