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ARTICLE · 01 DECEMBER 2022

Small Changes During Contract Performance Can Take A Large Bite Out Of The Bottom Line

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It is not unusual for agency personnel to request extracontractual changes during performance of a contract, many of which may seem fairly innocuous at first glance.

United StatesGovernment, Public Sector

It is not unusual for agency personnel to request extracontractual changes during performance of a contract, many of which may seem fairly innocuous at first glance. From changing the type of screw used in a machine, to altering the background colors displayed on computer screens, extracontractual changes requested by agency personnel can seem minor or inconsequential, and contractors often readily agree without immediately recognizing the potential adverse consequences or taking the necessary steps to adequately protect themselves.

But even small extracontractual changes can create a large ripple effect that erodes the profitability of a contract and, in some cases, can even result in delays by the contractor in meeting performance deadlines. No matter how small, extracontractual changes to a design often require, at a minimum, revisions to design plans and a revised or new order for materials, which can increase costs and delay performance. And if the terms of

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