ABSTRACT

The theory of changes is unique to public contracting. While the parties to a commercial contract may negotiate the right to make subsequent changes to the contract in public sector contracting, the public entity generally retains the right, through the contractual language of a changes' clause, to make unilateral changes within some predetermined parameters. This right seeks to preserve the government's fiduciary duty in the expenditure of public funds. However, changes outside of the contractual right to make changes can occur. Such changes are commonly known as constructive changes, i.e., the changes outside of the authority of a changes' clause. This entry examines the nature of the constructive change and offers an approach for examining the validity of claims based on the constructive change argument.