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Claims vs. Equitable Adjustments - Do You Know the Difference?

Understand the difference between a Request for Equitable Adjustment and a claim.

Many government contractors do not understand the difference between a Request for Equitable Adjustment (REA) and a claim. They also don't understand how an agency treats an REA and a claim or how an appeal of a denied claim proceeds through the Boards of Contract Appeals or the Court of Federal Claims. This topic clearly explains many situations where the Federal Acquisition Regulation (FAR) permits a contractor to submit an REA, when the contractor is entitled to receive payment or a schedule adjustment, and how to proceed to ensure payment or time adjustment. The material reviews how to treat a denied REA and submit it as a formal claim, including the statutory requirements for a claim. This topic also explains the processes used by agencies when reviewing REAs and claims and what will be required by a contractor to prosecute its claim to a final decision, either allowing or denying the claim. This information is necessary for all government contractors since equitable adjustments and claims frequently arise in the performance of government contracts.

Learning Objectives

  • You will be able to define a Request for Equitable Adjustment (REA) and a claim.
  • You will be able to describe the difference between an REA and a claim.
  • You will be able to discuss how an REA is processed by an agency.
  • You will be able to explain how a claim is processed by the contracting officer, boards, and Court of Federal Claims.

61 minutes
Course Exam
Certificate of Completion
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Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Agenda

Simple Definition

  • Requests for Equitable Adjustment (REA) - Federal Acquisition Regulation (FAR) Definition
  • Claim - FAR Definition

Government Contracting Life Cycle - Where REAs and Claims Arise

  • Life Cycle Explained
  • Constructive Changes and REAs
  • Typical Constructive Changes That Give Rise to REAs/Claims - 14 Examples From the FAR
  • How to Present an REA
  • Steps in an REA

Claims Under the Contract Disputes Act (CDA) of 1978

  • Requirements for a Claim
  • CDA Certification, Where Required
  • Elements of a CDA Claim
  • How to Present a CDA Claim

REAs and Negotiations With the Contracting Officer

Analyzing Your REA or Claim - How Likely Are You to Succeed?

  • Steps in Appealing a Claim - Boards of Contract Appeals
  • Steps in Appealing a Claim - Court of Federal Claims

Possible Alternative Dispute Resolution

  • At the Boards of Contract Appeals
  • At the Court of Federal Claims

Different Treatment of Costs - REAs Compared to Claims

Summary of Differences - REAs and Claims

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Why Lorman?

Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Credits

OnDemand Course

Applications have not yet been submitted for Delaware, Idaho, Kentucky, Maine, New Hampshire, Ohio, Oklahoma, South Carolina, and Wyoming CLE for this course. However, if you are interested in obtaining CLE for any of the listed states or have any additional credit questions please email us at [email protected] or call us at 866-352-9540.

This course was last revised on December 16, 2021.

Call 1-866-352-9540 for further credit information.

  • CA MCLE 1.0
     
  • Lorman Business Center, LLC. is a State Bar of California approved MCLE sponsor and this course qualifies for 1.0 CLE hours of participatory credit.
     
  • ICC 0.1
     
  • Lorman Education Services is an International Code Council Preferred Provider. This event is approved for 0.1 CEU's through ICC.
     

To earn each credit Lorman offers through the OnDemand learning platform, you need to watch 100% of the program. Also, for certain credits you will need to fulfill additional requirements which will be displayed on the "credits" tab when viewing the course.

This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

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Why Lorman?

Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Faculty

Richard D. Lieberman

Richard D. Lieberman

FAR Consulting & Training

  • Owner of FAR (Federal Acquisition Regulation) Consulting & Training
  • Consulting practice emphasizes all aspects of compliance with the FAR and federal acquisition rules
  • Conducts regular seminars and workshops on numerous aspects of government contracting, including REAs, claims, bid protests, contract administration, and contract compliance
  • Written numerous publications related to the areas of government contracting, including eight books and numerous articles; books include The 100 Worst Mistakes in Government Contracting (Nat’l Contract Management Assn (NCMA) 2008) (with Jason D. Morgan); The 100 Worst Government Mistakes in Government Contracting (NCMA 2012); Elements of Government Contracting (CCH-George Washington University, 2004) (with Karen R. O’Brien); The Government Contracts Forms Book (West, 2010) (with Garry S. Grossman and Gabriel D. Soll); Elements of Contract Formation (CCH-George Washington University 2000) (with Karen R. O’Brien); Elements of Contract Administration (2d Ed. CCH-George Washington University, 2001) (with Karen R. O’Brien); Anatomy of an Inspector General Investigation (Federal Publications, 1991-94); Government Contract Compliance: Practical Strategies for Success (George Washington University, 1992-98). Most recent articles include “Incorrect Government Advice – Whom Should You Heed?” (Bloomberg BNA Fed. Contr. Rpt. 105 FCR 26, Jan. 12, 2016) and “The Ten Big Mistakes Made by Small Businesses and New Government Contractors” (Bloomberg BNA Fed. Contr. Rpt., 104 FCR 844, Aug. 11, 2015)
  • Member of National Contract Management Association (NCMA)
  • J.D. degree, Georgetown University Law School; M.A. degree, University of Wisconsin, Madison; B.A. degree, Cornell University
  • Can be contacted at 202-530-5780 or [email protected]
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Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

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Product ID: 409495
Published 2021
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