House Passes AGC Backed Change Orders Bill

The House of Representatives passed an AGC-backed bipartisan bill that will require federal agencies to publish their change orders policy and procedures on any small federal construction contract. This change allows prospective federal construction contractors to better factor into their bids the risk and resulting cost of delayed payment for change orders. This bill resulted from AGC member testimony during a House Small Business Committee on the impact of change order delays on federal construction contractors.

Chairman Steve Chabot (R-Ohio) echoed AGC’s position that this bill “…safeguards these contractors and requires agencies to publish their change order process up front, in their solicitations, so they have all of the information they need that can affect their bottom line.”

AGC is at the forefront in advocating for greater accountability of the change order process among the different federal agencies. AGC has previously called on the Federal Acquisition Regulation Council to improve the data federal agencies collect regarding the administration of change orders in response to the Council’s information request. AGC’s recommendations would require federal agencies to collect a range of data regarding the timeliness of action by the contracting officer (CO) to encourage greater CO accountability.

For more information, contact Jordan Howard at jordan.howard@agc.org or (703) 837-5368.