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.
Learning Objectives
- 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.
