Sheet metal & Air Conditioning Contractors’ National Association

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Solution to the Federal Change Order Problem Near?

Feb 23, 2018

Federal construction contractors are increasingly frustrated by the slow approval and lack of payment for change orders. While change orders wait to be made definite, contractors and subcontractors must pay their payroll, material costs, and even taxes while payments from the federal government are delayed.  

SMACNA is enthusiastically supporting H.R. 2594, the Small Business Payment for Performance Act of 2017, bipartisan legislation introduced by Rep. Brian Fitzpatrick (R-8th-Pa.) and cosponsored by Rep. Stephanie Murphy (D-7th-Fla.), Rep. Stephen Knight (R-25th-Calif.) and others. This important bill, recently reported from the Small Business Committee, would make long overdue reforms advocated by small business federal contractors to quickly and fairly resolve change order disputes. 

SMACNA strongly endorses the legislative intent of H.R. 2594, 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 change order to a project’s original design or scope.