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Many construction contracts contain some version of a “differing site conditions” clause. AIA’s A201 general conditions, as well as in the EJCDC equivalent, contains a changed site...
The U.S. Court of Appeals for the Federal Circuit, in BGT Holdings LLC v. United States, recently held that the government does not have the discretion to deny a contractor’s request for equitable adjustment (REA) under Federal Acquisition Regulation (FAR) 52.245-1 (Government Property) where the conditions specified in that clause are present and the contractor is able to show financial loss. As discussed below, the Federal Circuit’s decision in this regard is a welcome development for government contractors because the court’s basic reasoning extends to all FAR clauses that direct th...