Certified Professional Public Buyer (CPPB) Practice Test

What does a request for equitable adjustment (REA) typically involve?

1. Changes to a contract that may require additional work and expense on the contractor

2. Correcting defects identified in prior work

3. Providing bonuses for early completion of the contract

4. Increasing the project timeline due to unforeseen circumstances

The correct answer is: Changes to a contract that may require additional work and expense on the contractor

A request for equitable adjustment (REA) typically involves changes to a contract that may require additional work and expense on the contractor. In the context of public contracting, an REA is often submitted by a contractor when unforeseen conditions arise that necessitate changes to the scope of work, which can lead to increased costs. This mechanism allows contractors to seek compensation for these additional expenses as part of a fair adjustment to the contract terms. This process is important because it acknowledges that certain circumstances outside of the contractor’s control can impact performance and costs, and it provides a formal avenue for addressing those impacts. The REA is essential for maintaining fairness in the contractual relationship, ensuring that neither party is unduly penalized or unfairly enriched as a result of unexpected changes or challenges. Moreover, the other options either refer to situations that do not typically require an REA or are more focused on issues like performance adjustments or corrections to existing work rather than the equitable adjustments related to additional work and costs.