Sheet metal & Air Conditioning Contractors’ National Association

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SMACNA endorses change order reform - Join the campaign to get paid on federal change orders

Sep 12, 2017

Has the federal government refused payment, delayed payment, or erected administrative barriers to you when seeking resolution of necessary federal change orders? We need you to tell us about your experiences getting paid for changes so SMACNA can better advocate for “The Small Business Payment for Performance Act of 2017.”

This important new bill (H.R. 2594), introduced by Rep. Brian Fitzpatrick (D-8th-Pa.) and crafted by SMACNA and other construction association leaders was designed to speed up change order payments and the process of change order resolution. Congress is listening to the need for reform of this painful process most often harmful to the financial health of countless federal contracting firms.

The legislation allows contractors to submit a request for equitable adjustment (REA), or an increase in fee, to the federal contracting 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 percent of the billed change-order work amount in a timely manner to offset extra costs. 

To help SMACNA push this bill on Capitol Hill and help you, please send SMACNA your examples of problems and issues you have had with change orders or are having right now. You do not need to give your name or company name. Providing written examples is important in illustrating this problem to Congress.

Please email your experiences to Stanley E. Kolbe Jr., SMACNA’s Director of Legislation at skolbe@smacna.org, and/or Tom Soles, SMACNA’s Executive Director of Member Services at tsoles@smacna.org.

Additional documentation from you that will aid our efforts includes:

  • On what specific federal jobs has this occurred? (Example: Federal Courthouse)
  • How did this negatively impact your business? (Did you have to borrow money to meet expenses or meet payroll? Did you have to apply for an extended line of credit? Did you have to turn down other jobs?)
  • Did this change your mind about doing future federal projects?
  • Include how many people you employ, how long you have been in business, and additional details of interest.

Support H.R. 2594 and join SMACNA’s effort to tell Congress about the negative impact of slow change order payments on your business and our industry. Your engagement and examples can advance this legislation. Capitol Hill offices need your input. 

Send SMACNA your experiences with change orders today and they will be used to boost this long overdue reform.