Notification of Contract Changes: Myths vs. Facts Under FAR 43.104
On federal construction projects, scope adjustments, revised field instructions, and unexpected directives can alter an interior framing, ceiling, or drywall package overnight. Many trade contractors and estimators assume that any communication from site personnel automatically adjusts the contract, or that differences can simply be reconciled during project closeout. However, the federal government maintains clear administrative rules for identifying scope changes. Understanding the regulatory baseline under FAR 43.104 on Acquisition.GOV helps contractors understand their responsibilities when government actions alter work requirements.
Myth 1: Any Field Direction Automatically Serves as an Official Change
Fact: A change is only official when it is identified as such in writing and signed by the contracting officer.
In commercial subcontracting, trade crews frequently receive informal requests from inspectors, project representatives, or prime contractor superintendents to shift wall layouts, install extra backing, or alter ceiling grid heights. In federal work, assuming that an unwritten instruction carries immediate contractual authority is a significant misconception. When a contractor considers that the government has effected or may effect a change that lacks written identification and the contracting officer's signature, federal regulations do not treat it as an already established contract modification. Instead, the situation represents an alleged change that requires formal communication to be recognized and evaluated.
Myth 2: Contractors Can Wait Until Final Billing to Report Constructive Changes
Fact: Contractors are required to notify the government in writing as soon as possible.
Holding unwritten alterations until the end of the project or waiting until after costs are fully incurred contradicts the process outlined in federal regulations. According to FAR 43.104, when a contractor believes the government has taken action that alters contract requirements without formal written confirmation signed by the contracting officer, it is necessary to notify the government in writing as soon as possible. While general contractors review our guide on FAR 52.243-4 Changes Clause requirements, tracking the separate notification guidelines remains essential for keeping adjustments compliant. Prompt written notification gives the government visibility into the condition before performance continues down the wrong path.
Myth 3: Submitting Notice Guarantees the Government Must Pay for the Work
Fact: Written notice triggers an evaluation that results in one of three specific government outcomes.
Some contractors believe that delivering a written notice of an alleged change obligates the government to accept the additional cost. In reality, the notice is designed to permit the government to evaluate the alleged change and determine the proper course of action. Following evaluation, the government has three specific regulatory options:
- Confirm that it is a change, direct the mode of further performance, and plan for its funding;
- Countermand the alleged change; or
- Notify the contractor that no change is considered to have occurred.
Because the government may decide to countermand the alleged change or notify the contractor that no change took place, proceeding with costly modifications before the government evaluates the notice creates financial exposure for the builder.
Myth 4: Government Conduct Does Not Carry Special Notification Clauses
Fact: FAR clause 52.243-7 establishes explicit contractor and government responsibilities regarding government conduct.
A contractor might assume that informal actions, verbal instructions, or technical clarifications from federal representatives are exempt from formalized reporting clauses. However, the clause at 52.243-7, Notification of Changes, which is prescribed in 43.107, specifically incorporates the notification policy. This clause requires the contractor to notify the government promptly of any government conduct that the contractor considers a change to the contract. Furthermore, clause 52.243-7 specifies the responsibilities of both the contractor and the government regarding these notifications. Knowing how these clauses interact is just as critical as pricing change orders accurately.
Myth 5: Government Funding for Alleged Changes Is Automatic
Fact: The government must evaluate the change to confirm it, direct further performance, and actively plan for its funding.
Federal agencies cannot simply absorb cost impacts on an ad-hoc basis without formal administrative planning. When an unwritten change is confirmed through the evaluation process, the regulation specifies that the government must plan for its funding while directing the mode of further performance. By providing prompt written notice when government conduct appears to alter drawings, specifications, or methods of construction, trade contractors and builders allow contracting officers to determine technical direction and allocate the necessary funds legitimately.
Sources
FAR 43.104 Notification of contract changes. | Acquisition.GOV
Published October 30, 2026. No affiliate links on this page. Facts come from the sources linked above; check them for updates.