Congress Takes on Change Orders Delays

July 10, 2017 3:52 PM | Anonymous member (Administrator)
Federal Contractor ReportBill Encourages Agency Change Order Accountability

On June 15, the House Small Business Committee passed, by a bipartisan vote of 21-0, the AGC-supported " Small Business Payment for Performance Act of 2017." The bill will ensure small business federal contractors get paid sooner for change orders. Specifically, the legislation requires a federal agency that receives a request for equitable adjustment (REA) to pay 50% of the billed change order work amount in a timely manner to offset extra costs. This practice is common in the private industry, including in ConsensusDocs Contract Documents, but absent in federal contracts. Last month, AGC members Ed DeLisle and Andy Brown testified before the House Small Business Committee on change order delays and the impacts these have on federal construction contractors. Many House Small Business Committee members referenced the hearing as a motivating factor for their support of H.R. 2594 and accompanying amendments.

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