Home Management The cor/cotr answer book
What is the COR's role in resolving constructive changes?
The COR must ensure that a technical analysis, sufficient to support the CO's final decision, is prepared for all constructive changes.
There are three steps in preparing an analysis of constructive changes:
1. Identifying the actual changes to the contract
2. Preparing the technical analysis and notifying the CO that a technical analysis has been prepared
3. Assisting the CO with negotiations.
Identifying the Actual Changes to the Contract
When a COR provides guidance (also known as technical direction) to the contractor under performance of the contract, he or she may go beyond his or her scope of responsibility, resulting in a change to the contract known as a constructive change.
Preparing the Technical Analysis and Notifying the CO That a Technical Analysis Has Been Prepared
Although there is no set format for a technical analysis, it should be documented in writing and a copy provided to the CO. The technical analysis may be in the form of a:
Memorandum to the file
Any other format used to document meaningful communication.
Who may identify a potential constructive change?
Constructive changes may be identified by either the COR or the contractor. Because only the CO can change the contract, the CO should be notified if a possible constructive change is identified, and he or she will determine if a constructive change has occurred.
How should a COR notify the CO after identifying a potential constructive change?
There are no set rules for how a COR should notify the CO; notification can occur by telephone or mail, or as an action item in a report. It is essential only that the CO is notified that a constructive change may have been made to the contract. Notification should include sufficient information describing the events that led to the possible constructive change.
How and when does a contractor notify the CO of a potential constructive change?
A contractor can use any method it chooses to notify the CO of the possibility of a constructive change. Whether the CO is notified or not depends on whether the contract is a fixed price or cost reimbursement contract. A contractor is not likely to perform extra work under a fixed price contract without firm assurance of additional compensation from the CO. Such assurances are not needed under a cost reimbursement contract because the contract stipulates that the government will pay for the extra work. However, if the contract contains a clause requiring a notification of changes, the contractor must notify the CO using a notice of change.
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