What is the effect of the changes clause?
UPDATED: February 20, 2013
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The contractor must assert its right to an "equitable adjustment" under the Changes clause within a certain time from the date that the change occurred. (An "equitable adjustment" is generally the amount required to cover the contractor's increased (or decreased costs) plus an additional amount to account for profit.) If the Government change increases or decreases the cost of performance under the contract, the contracting officer must make an "equitable adjustment" in the contract price, delivery schedule, or both. If the contractor disagrees with the adjustment, it should submit a claim under the Contract Disputes Act. However, the contractor should continue with performance while the claim is pending.