The USPS terminated a mail delivery contract with Keeter Trading Co. for default, but the court voided the termination. The government had unilaterally changed the contractor's service duties beyond what the contract allowed without getting mutual agreement. The court ruled this violated the contract's Changes clause, making the default termination improper. This matters to subcontractors because it protects you from being terminated for default when the owner makes unauthorized changes to your work scope.
If your contract has a Changes clause with a dollar threshold for unilateral changes, the owner cannot exceed that threshold without your written agreement—even if they claim it's necessary.
Document every service or scope change the owner requests or imposes. If they exceed the contract's change threshold without a formal amendment, you have grounds to challenge a default termination.