Certified Professional Contract Manager: Contract Modifications and Change Management Flashcards
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Read the first 7 Certified Professional Contract Manager: Contract Modifications and Change Management flashcards as text
Under the Changes clause in a government contract, which party has the unilateral right to direct changes within the general scope of the contract?
Answer: The contracting officer
The contracting officer holds the unilateral authority to direct changes within the scope of the contract under the Changes clause.
A bilateral contract modification that changes the contract price, delivery schedule, or terms with the consent of both parties is called a:
Answer: Supplemental agreement
A supplemental agreement is a bilateral modification that requires mutual consent and is used to alter substantive contract terms.
Which type of contract modification does NOT require the contractor's signature?
Answer: Administrative change
Administrative changes, such as updating a contracting officer's address or administrative data, are unilateral and do not require the contractor's signature.
A constructive change occurs when:
Answer: Government actions or inactions force the contractor to perform work beyond the contract scope without formal authorization
A constructive change is an informal change resulting from government conduct—actions or inactions—that effectively requires extra work without a formal written change order.
When a contract modification results in work that falls entirely outside the original contract's general scope, this is referred to as a:
Answer: Cardinal change
A cardinal change is one so drastic that it alters the essential nature of the contract, potentially allowing the contractor to treat it as a breach rather than a modification.
Under FAR Part 43, which of the following is NOT a proper reason for issuing a unilateral change order?
Answer: Negotiating a price increase for changed work
Negotiating a price increase requires bilateral agreement and cannot be accomplished through a unilateral change order.
What is the primary purpose of an equitable adjustment in a modified government contract?
Answer: To restore the contractor to the same financial position they would have been in had the change not occurred
An equitable adjustment restores the contractor to the same economic position they would have been in absent the change, covering increased costs and a reasonable profit.
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