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changes clause
A changes clause, in government contracting, is a required clause in United States government construction contracts.
==Background==
Cardinal Changes (Significant Changes) clauses are the source of a significant number of disputes arising from government contracts. The clause, which has appeared in nearly every U.S. government contract for over 100 years, gives the government the power unilaterally to order contractual modifications.〔4-15 Construction Law P 15.03〕 If the parties are unable to agree on compensation to be received by the contractor for the modified work, the contractor shall be entitled to an equitable adjustment. The goal of an equitable adjustment is to place the contractor in the position he would have been in had the change not been encountered. The adjustment should not alter the contractor's profit or loss position from what it was before the change occurred.〔J.F. Shea Co. v. United States, 10 Cl. Ct. 620 (1986). Where a contract was bid in a lump sum, the equitable adjustment for substitution of work is computed by the following formula: (1) Adjusted contract price; (2) Less projected cost without changed conditions; (3) Plus actual cost under changed conditions; (4) Plus reasonable profit/overhead computed in accordance with governing regulations on difference between 2 and 3.〕
The Changes clause was first used in defense contracts where it was taken to be essential in time of war for the government to include new technologies without halting work to renegotiate the contract. Changes clauses are in almost all categories of government contracts.〔Vom Baur, The Origin of the Changes Clause in Naval Procurement, 8 Pub. Cont. L.J. 175 (1976).〕 If the Changes Clause is not incorporated in writing it is incorporated implicitly under the Christian Doctrine in almost〔See 4 No. 2 Nash & Cibinic Rep. ¶ 13 ("In Aero Corp., ASBCA 8178, 1963 BCA ¶3665, the board refused to use the doctrine to insert the Changes clause in a purchase order. In Jamsar, Inc., GSBCA 4396, 76-2 BCA ¶12053, the board refused to insert the Changes clause in a building services contract. Under the FAR, the Changes clause is a mandatory clause for almost all types of contracts.")〕 all U.S. government contracts, including FAR Part 12 contracts.
抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』
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