A Request for Equitable Adjustment (REA) is a request under the terms of a contract seeking an adjustment to the contract for price, delays, or for an unjustified act.
A distinguishing factor between a REA and a CLAIM is generally that interest cannot be charged upon the submission of an REA whereas interest can be charged upon the submission of a CLAIM. This is an important distinction in that it will dictate how and when your issue will be resolved. So as a Contractor involved in Government contracting as a prime or subcontractor you must be able to determine what path will get your issue resolved with the least amount of financial degradation.
REA can be submitted within the terms of the Changes Clause (FAR 52.243) that allows for changes that are within the scope of the contract. An example is when the Government issues a Change Order. On the other hand if there is a change in the contract an REA can be submitted under the Constructive Change Doctrine.
A CLAIM on the other hand is a written formal demand seeking as a matter of legal right the payment of a sum certain, interpretation of contract terms, seeking or restricting proprietary rights, plus many other legal areas. A CLAIM can be based upon a contract clause or RELATING TO A CONTRACT CLAUSE. Also CLAIM in some cases must be CERTIFIED to validate the claims content and integrity.
When issues arise before, during, or after contract performance It falls upon the contractor to understand several key areas, such as, the following:
- What constitutes a dispute
- What is actionable
- How to calculate damages
- What Format should be used an REA or CLAIM
- How to write the REA or CLAIM
- What is the legal basis
- What are the obligations of the Contracting Officer
- How long will the dispute process take
- What are the expectations of the Board of Contract Appeals
- How to negotiate a prompt resolution
If handled correctly by DoD Board of Appeals experienced advisores and consultants most contract disputes can be resolved without getting fully involved in the legal process. So when considering whether or not you should hire DoD Board of Appeals Advisores consider the fact that we will be your advocate that will resolve the issue economically.
DoD Board of Appeals has 40 years of experience dealing with the Boards and the U.S. Government in resolving contract disputes in a prompt and financially prudent manner.