What’s the difference between a suspension of work and a constructive change? For federal contractors, there are two important differences:

  1. If you want profit, prove a constructive change.
  2. If any other contract clause affords an equitable adjustment (e.g., Changes Clause), the Suspension of Work clause won’t help you.

To recover from a suspension of work, a contractor must show:

  1. Contract performance was delayed;
  2. Government directly caused the delay;
  3. The delay was for an unreasonable period of time; and
  4. The contractor suffered damages therefrom (excluding profit); and
  5. No other clause provides an equitable adjustment to the Contractor

FAR § 52.242-14

To prove a constructive change, a contractor must show:

  1. Any written or oral order from the Contracting Officer;
  2. Not a directed change;
  3. That caused a change;
  4. Contractor gave timely notice that it considered the order as a change; and
  5. The contractor suffered damages therefrom.

FAR § 52.243-4(b)

In a recent Civilian Board of Contract Appeals decision, the Board agreed with the contractor in finding an unreasonable delay (179 days) and awarded damages for a suspension of the work.  In the same decision, the Board also found a constructive change in the contractor’s favor.  The Board did not discuss why the suspension of work clause prevailed when the contractor may have been able to show a constructive change (unless, perhaps, notice of a constructive change was inadequate).

BCPeabody Construction Services, Inc. v. Dept. of Veterans Affairs, CBCA No. 5410, March 26, 2018

Published On: April 25, 2018

Share This Story, Choose Your Platform!

Construction Contracts & Whodunit

November 7, 2017|

Imagine reading a crime novel and just when you think you figured out whodunit, a plot twist suggests a different culprit. In construction contracting, finding the right answer can be a difficult task when

Owner Nonpayment is No Defense to Miller Act Claim

October 24, 2017|

As if you needed confirmation that the Federal Miller Act is a powerful tool for unpaid subcontractors, this is it.  Even when a Prime ordered and accepted the Sub’s work, but didn’t have to pay under the Subcontract, the Subcontractor still. . . .

Trust, but Verify

October 17, 2017|

Rely at your own risk upon a Contracting Officer’s statements when statutes or contract provisions may conflict.

Bases Covered?

August 8, 2017|

Contractors, will your current insurance policy cover “your work” as a joint venture partner? The typical answer is NO. 

Rules, Which Rules?

July 25, 2017|

Good Idea: Include a choice of law clause in your contract to promote consistency and predictability (while reducing potential costs and risk).

Share This Story, Choose Your Platform!

Jonathan J. Straw
Best Lawyers® - Jonathan Straw | 2026

Share This Story, Choose Your Platform!