Claims vs. Equitable Adjustments – Do You Know the Difference? is brought to you by Lorman
Understand the difference between a Request for Equitable Adjustment and a claim.
Many government contractors do not understand the difference between a Request for Equitable Adjustment (REA) and a claim. They also don’t understand how an agency treats an REA and a claim or how an appeal of a denied claim proceeds through the Boards of Contract Appeals or the Court of Federal Claims. This topic clearly explains many situations where the Federal Acquisition Regulation (FAR) permits a contractor to submit an REA, when the contractor is entitled to receive payment or a schedule adjustment, and how to proceed to ensure payment or time adjustment. The material reviews how to treat a denied REA and submit it as a formal claim, including the statutory requirements for a claim. This topic also explains the processes used by agencies when reviewing REAs and claims and what will be required by a contractor to prosecute its claim to a final decision, either allowing or denying the claim. This information is necessary for all government contractors since equitable adjustments and claims frequently arise in the performance of government contracts.
- You will be able to define a Request for Equitable Adjustment (REA) and a claim.
- You will be able to describe the difference between an REA and a claim.
- You will be able to discuss how an REA is processed by an agency.
- You will be able to explain how a claim is processed by the contracting officer, boards, and Court of Federal Claims.