CHAPTER 9

Contract Modifications

Contract modifications (i.e., changes to existing contracts) also require attention from estimators and reviewers. There are several modification scenarios: (1) those arising from unilateral changes by the buyer, (2) those arising from changes identified by either party and bilaterally negotiated, and (3) those that the buyer does not acknowledge as an entitlement and where the seller believes the contract has been constructively changed by events caused by the seller. The last situation gives rise to a request for an equitable price adjustment, perhaps continuing into claim status if the buyer does not relent.

Pricing additional work under a modification is not much different from pricing the original work, except ...

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