Whether it is an express change order or a constructive change, the government needs to know the amount of money to set aside. In the case of a constructive change, the government needs to know that a claim is being submitted and the basis of the claim as well as the dollar amount. To encourage prompt notice, the government uses a number of contract clauses that set forth limitations and notification requirements (FAR 52.243(1-7), depending on the contract type). The courts have taken the position that these notice provisions apply only to formal change orders and the government has implemented two other clauses for constructive changes: (1) the first, applying only to construction contracts, states that costs incurred within 20 days from the time the contractor gives notice are recoverable (FAR 52.243-4) (2) the other clause, applying to large R&D or supply contracts that has been extended to others, states that a contractor is to notify the CO of government conduct that constitutes a constructive change promptly, usually within 30 days though the time is negotiable (FAR 52.243-7).

How firm are these notice requirements? The government generally takes the position during litigation that no recovery is allowable unless the contractor has provided the required notice within the time limits stated in the contract. Courts and Boards are more lenient, holding that contractual notice requirements do not bar recovery unless the government was "prejudiced" by the contractors failure to provide timely notice or unless the government would have taken different action from those taken had timely notice been given. Proving it was prejudiced is usually very difficult for the government who must clearly demonstrate that the passage of time obscured the elements of proof or how the CO might have minimized or avoided possible extra expenses.

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