The AGC-supported “Small Business Payment for Performance Act of 2023” requires that a federal agency that receives a request for equitable adjustment (REA) pay 50% of the billed change order work amount in a timely manner to offset extra costs.

On April 19, the AGC-supported “Small Business Payment for Performance Act of 2023” was introduced with bipartisan support. U.S. Reps. Pete Stauber (MN-08), Scott Peters (CA-50), Marc Veasey (TX-33), and Brian Fitzpatrick (PA-01) introduced the bill, which will ensure small business federal contractors get paid sooner for change orders. Specifically, the legislation requires a federal agency that receives a request for equitable adjustment (REA) to pay 50% of the billed change order work amount in a timely manner to offset extra costs. This practice is common in the private industry, including in ConsensusDocs Contract Documents, but absent in federal contracts. AGC remains at the forefront in advocating for greater accountability of the change order process among the different federal agencies. AGC worked with the U.S. Army Corps of Engineers to release the agency’s Change Order Playbook.

For more information, contact Jordan Howard at [email protected] or (703) 837-5368.