Requests for Equitable Adjustment: Notice and Documentation Basics for Subcontractors

Extra work often begins before the parties agree on price. A field direction, revised interpretation, access problem, schedule impact, differing condition, or Government-caused change can increase cost while the subcontractor is still expected to perform.

For a federal subcontractor, recovery usually depends first on the subcontract: who can direct a change, when written notice is due, what records must be kept, whether the prime will sponsor an upstream request, and how settlement or payment is handled.

REA vs. Formal Claim

A request for equitable adjustment can seek a change to price, schedule, or other contract terms after changed performance. A formal claim under the federal disputes framework has a different procedural posture and can require certification when the amount exceeds the applicable threshold.

For a detailed comparison, see REA vs. Claim for Federal Subcontractors.

Build the Record Around Three Questions

• Entitlement: What contract term, direction, condition, delay, or change supports the requested adjustment?
• Causation: How did that event affect specific labor, material, equipment, schedule, productivity, or other performance?
• Quantum: What contemporaneous records support the amount of the requested price or time adjustment?

Practical Administration Steps

• Identify the people authorized to direct changed work.
• Send written notice to the contractually required recipient when a potential change occurs.
• Separate changed-work cost from base-scope cost as early as possible.
• Preserve schedule updates, daily reports, invoices, correspondence, and field records.
• Review pass-through and sponsorship provisions before assuming the prime will present the matter to the Government.
• Read modification and payment releases before signing away unresolved adjustment rights.