SMACNA Supports Legislation to Address Change Orders Payment Problems on Federal Projects

SMACNA is urging members of the U.S. House of Representatives to support and cosponsor the Small Business Payment for Performance Act of 2025. This critical legislation, sponsored by Rep. Pete Stauber (R-MN-8) and cosponsored by Reps. Fitzpatrick (R-PA), Vessey (D-TX), and Norcross (D-NJ) aim to address unpredictable and/or late payments for change orders on federal projects, one of the most significant and costly challenges facing contractors working on public sector projects. SMACNA emphasized, “From extensive experience working on federal projects, we fully concur with Rep. Stauber’s intent in sponsoring the Payment for Performance Act and give it our highest rating for advocacy and support.” Stauber, a champion for small businesses in various sectors of the economy, has been an outspoken leader in advocating for federal contracting payment reforms necessary for SMACNA contractors in Minnesota and nationally during his time in Congress.

With steel, aluminum, and copper tariffs already driving up contract material costs for contractors, especially on existing federal infrastructure projects, we urge Congress to expedite the passage of this long overdue and vitally necessary piece of legislation. The Stauber bill will provide badly needed support to small businesses and all federal contractors facing financial pressures, which are increasing daily due to rapidly changing supply and material costs.

Under the text of this bill, contractors would be able to submit a request for equitable adjustment (REA) or project contract fee adjustment to an agency that had approved and performed a change order to a project’s original design or scope. In addition, the legislation would allow small business federal contractors to receive payment sooner after project changes are completed and certified as specified and directed by federal agency officials. While SMACNA noted that this legislation does not represent the final remedy to the millions of dollars in change order inequities that SMACNA contractors and other federal contractors face every year, it will make a significant difference and is a long-overdue step most worthy of passage.

Similar bills have been introduced in previous Congresses, and while passing the House, have yet to make it past the U.S. Senate to reach the President’s desk. SMACNA hopes to join industry allies to enact the Stauber bill in this Congress.

Click here to read our letter to the House of Representatives on this legislation.