Importance Of Default Clause
All government contracts contain provisions that protect the interest of the government and the contractor. The provisions in a contract indicate the requirements, conditions, and the obligations for all who are involved in the contract. Provisions suggest the contractor is to conduct business during the period of a contract. Interfacing with the government is also included in the provisions. Contractors who are new to government contracting and do not understand or are aware of the provisions in contract are those contractors that have some sort of dispute (Hearn, 2011).
Keeping the interest of the tax payer in mind, encouraging competition, and the advancement of socioeconomic goals government contracts are governed by many rules and regulations. Clauses contained in government contracts give the government the right to change or terminate contracts. The default clause which is almost like Termination for Default allows the government to terminate a contract for the failure or untimely delivery of products or performance …show more content…
Work can be either added or taken away from the contract. Change orders normally affect the amount of the contract and the completion date. Contracting officers and contractors have to be agreement when changes are made during the scope of the contract. The exception to the rule is the contracting officer and the contractor does not have to agree to the changes of a contract when the contract is funded in increments or the contract is a cost-reimbursement contract. The contractor will still be required to perform under the provisions of the original contract. Chang orders are used to suit the needs of the government which why there are many clauses that are used in government contracting. These clauses authorize the contracting officer to change contract terms and specifications, but not the characteristics of a contract (FAR Subpart