Changes clauses give the government the power unilaterally to order contractual modifications;[1] in return, the contract specifies that if the parties are unable to agree on compensation to be received by the contractor for the modified work, the contractor shall be entitled to an equitable adjustment.
The goal of an equitable adjustment is to place the contractor in the position he or she would have been in had the change not been encountered.
The adjustment should not alter the contractor's profit or loss position from what it was before the change occurred.
[5] Generally the FAR apply to contract solicitations issued on or after April 1, 1984.
[6] Earlier contracts are governed by the prior agency regulations.