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Path: Consulting Services arrow Report & Digest arrow GCA Digest Articles arrow GCA Digest 1998 arrow Constructive Change - Other Constructive Changes

Constructive Change - Other Constructive Changes

1. Late or Unsuitable Government-Furnished Property. In general most decisions hold that a constructive change arises when government property deemed to be used for contract performance is furnished late or is furnished in a condition that is unsuitable for its intended use.

Failure of the government to cooperate. There are numerous and varied cases where the government’s failure to cooperate, resulting in increased costs, was ruled a constructive change. Several categories of non-cooperation include (a) government direct interference with contract work (e.g. imposing an overly rigid inspection system, creating excessive noise, diverting water onto a construction site) (b) failure to take necessary action (e.g. failure to supply steel for repair of ships) (c) failure to provide access to work site (e.g. too narrow a road, closure of a road) or (d) unreasonable action (e.g. failure to approve a subcontractor who had worked on seven similar contracts, failure to approve a substitute subcontractor, unreasonable disapproval of shop drawings).

Late Exercise of Options by the Government. The government’s exercise of an option after the expiration date of the option has been held to be a constructive change.

Diverting Government Requirements. Under indefinite-quantity-requirements contracts where the government was obligated to order all of its needs for a particular product or service, the government’s ordering of those items from another company or from within the government have been ruled as constructive changes.

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