XL EagleREA (Request for Equitable Adjustment)
REA stands for Request for Equitable Adjustment. A request for equitable adjustment asks the contracting officer to change the contract price, schedule, or both because something outside the contractor's control changed the work. Common causes are government-directed changes, differing site conditions, government delays, and new wage determinations under certain clauses.
An equitable adjustment is meant to make the contractor whole, covering the added cost plus reasonable profit, or giving back savings when work is reduced. An REA is a negotiation tool. If it is not resolved, the contractor can convert it into a formal claim under the Contract Disputes Act.
Why it matters to a small contractor
When the government asks for something extra or different, give written notice right away and ask for direction in writing. Track the extra hours, materials, and costs separately. A clear, well-supported REA is usually settled faster and cheaper than a formal claim.
Example
During a roofing job, the contractor finds rotted decking that was not shown on the drawings. They notify the CO the same day, get written direction to replace it, and later submit an REA with photos, labor hours, and material receipts.
REA: common questions
What is the difference between an REA and a claim?
An REA is a request to negotiate an adjustment. A claim is a formal demand under the Contract Disputes Act that requires a contracting officer final decision and can lead to appeal.
Can I recover the cost of preparing an REA?
Sometimes, as part of the negotiation, depending on the circumstances. Costs to pursue a formal claim against the government are generally not allowable.
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