Request for equitable adjustment sample letter 2025

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Contractors should submit their request for equitable adjustment within 30 days of the change that creates the need for the REA.
A Request for Equitable Adjustment (REA) is a written request to the US government for payment when unforeseen and unintended circumstances cause an increase in contract performance costs. An REA is not a claim or lawsuit and can occur during the life of a contract.
An REA can be a better option if, for example, the contractor wants to strongly signal that theres room for negotiation, as compared to a claim, which is generally thought to be more adversarial. An REA also does not require a written final decision by the contracting officer, so it might generate a faster response.
For example, in a construction project, if unexpected soil conditions are discovered during excavation, the contractor may request an equitable adjustment to the contract price to cover the additional costs incurred.
Changes and REAs encompasses the quantitative difference between the reasonable cost of performance without the added, deleted or substituted work and the reasonable costs of performance with the addition, deletion or substitution. Burden of proving amount of equitable adjustment is on claimant.
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An equitable adjustment, in government contracting, is a contract adjustment pursuant to a changes clause, to compensate the contractor expense incurred due to actions of the Government or to compensate the Government for contract reductions.

request for equitable adjustment example