H.R. 2344 - Small Business Payment for Performance Act
SMACNA Advocates: Supports reforms to more quickly and fairly resolve change order payment disputes.
SMACNA Policy References: Federal Contract Standards Policy; Contract Agreement on Federal Projects
Description: This vitally important legislation that would allow contractors to submit a request for equitable adjustment (REA) or project contract fee adjustment to an agency that had approved a performed change order to a project’s original design or scope.H.R. 2344 would ensure small business federal contractors get paid sooner for completed change order as directed by agency officials. Specifically, the legislation allows contractors to submit a request for equitable adjustment (REA) - or an increase in fee - to the agency. The contractor may then bill the agency for any actual change order work completed while the REA is pending. Once the agency receives the REA, it must pay 50% of the billed change order work amount in a timely manner to offset extra costs. While this legislation is not the entire solution to the millions of dollars in change order inequities SMACNA contractors face every year, it is a very significant first step most worthy of passage.
The full bill text is here. A bill summary is here.
Current Status: This important bill, introduced April 18, 2019, was referred to the Small Business Committee and awaits consideration.