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Locke, August 15, 2013 in Contract Administration
It's Fixed Price, you don't know the cost.
I don't see a problem with a no-cost mod to change the SOW especially when both parties agree it's in each other's best interest.
I'm not giving legal advice though, this is my opinion based on experience.
As a contractor, I've absorbed costs for changes which came up right before or during a project all the time. It's usually the labor and/or travel which could be effected by waiting. It's not worth paying employees to sit around (or paying per diem, hotels if it's a project we traveled to) while I'm waiting on change order unless it's a substantial sum of money.
Write the supplemental agreement. Say that there is no change to the contract price. Include a release of claims.
I have to say that your agency is a real mess if it takes two months to process a request for $5,000 in funding.
Write the supplemental agreement. Say that there is no change to the contract price. Include a release of claims.I have to say that your agency is a real mess if it takes two months to process a request for $5,000 in funding.
I agree with everything that Vern anf FAR Fetched said. Write it up and include the release language then get on with the contract.
Are you saying that the contracting office or the program/project office doesnt have any contingency funding for mandatory changes such as errors and omissions or differing site conditions, etc.? Or is this a situation where a discretionary user requested change has to go through an approval and funding process?
Be advised that a government caused suspension or work or even another type of delay can cost the taxpayers many more times than the direct cost of a change or changed condition. I would advise to never direct a suspension fo work - especially for an unknown duration - without knowing the cost and time impacts and without having the impact funding readily available. ESPECIALLY for discretionary changes.
I understanding the contractor is choosing to absorb the cost but is that anyway to do business?
I figured the "two months" issue was due to end of fiscal year. If it's all the time, not sure what to tell you.