Agencies would pay small construction contractors toward ordered contract changes

Federal agencies would make partial payments toward small construction contractors’ requests for added costs. The payment would cover at least 50% of estimated added costs requested by a small business holding a federal construction contract. The contracting officer must have directed the change without the small business’s agreement. The request must follow agency and contract procedures, meet the contract’s deadline, and estimate the added costs. The partial payment would not settle the final amount owed. The Small Business Administration would have to issue rules within 90 days after enactment.

Small contractors would pass along the share of each partial payment that covers their direct subcontractors’ added costs. Direct subcontractors receiving money would also have to pass the appropriate share to subcontractors at any tier. The required share must cover added work costs caused by the same contract change. The duty to share money would apply when a contractor or direct subcontractor receives a covered partial payment.