478 – Colors of Contract Changes

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Many (ok, most?) contracts do not go exactly as planned.

The contracting officer typically awards contracts with the intent of not having to make unplanned changes to the contract. Likewise, the contractor is typically not expecting to have to absorb unplanned changes for the contract to go exactly as planned….but life happens…changes happen.

Not all changes are equal though. Changes are like traffic lights.

Green light changes are anticipated and can be made unilaterally.
Yellow light changes require some caution and must be negotiated.
Red Light changes are all stops – just like a red light. These changes are not allowed.

In this episode, we outline the rules behind these color changes, as well as a few examples of each.