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REA vs. Claim for Federal Subcontractors: What Is the Difference?

An REA and a claim can seek similar money or time, but they do not occupy the same procedural posture. For a subcontractor, the prime's sponsorship and the subcontract's notice rules add another layer.

Federal project teams often use the terms REA and claim loosely. A request for equitable adjustment usually begins as a contract-administration request to adjust price, time, or other terms after a change. A claim under the Contract Disputes Act framework is a more formal written demand seeking relief as a matter of right and can require certification when it exceeds the statutory threshold.

A subcontractor generally does not submit a CDA claim directly to the Government because it lacks privity. The subcontract should therefore explain how the subcontractor's request is prepared, passed through, certified where necessary, and sponsored by the prime.

The FAR defines a claim and formal decision process

FAR 52.233-1 defines a claim as a written demand or assertion seeking, as a matter of right, payment of a sum certain, interpretation or adjustment of contract terms, or other relief. Contractor claims over $100,000 require the certification stated in the clause.

Official source: FAR 52.233-1 — Disputes.

An REA often starts under a changes clause

FAR changes clauses provide for equitable adjustment when directed changes affect cost or time and impose notice or assertion periods. A prime may initially submit an REA to negotiate the adjustment without immediately demanding a final contracting-officer decision.

Official source: FAR 52.243-4 — Changes (Construction).

For a subcontractor, the agreement controls the path upstream

  • How quickly must the subcontractor notify the prime of the underlying change?
  • When must pricing and schedule support be submitted?
  • Will the prime sponsor a pass-through REA or claim?
  • Who controls settlement and appeal decisions?
  • Who bears legal, consultant, and claim-preparation costs?
  • Does the subcontract condition payment on the Government's recovery?

Do not wait to decide what the request is called

The safest administration starts with timely written notice and contemporaneous cost and schedule records. The parties can later decide whether the matter remains an REA, becomes a formal claim, settles at the prime-sub level, or proceeds through a sponsored claim path. Missing the subcontract's initial notice deadline can damage every later route.

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