M.J. Paquet bid on a New Jersey highway project but submitted an unbalanced bid. After OSHA issued new safety regulations that made part of the work impracticable, the DOT deleted the bridge painting work from the contract. The court ruled that even though the DOT could delete the work, Paquet was still entitled to an equitable adjustment (extra payment) for the remaining completed work. This means a contractor can recover damages when government-ordered deletions happen, regardless of bid structure.
If a government agency deletes contract work due to changed conditions or new regulations, you can claim an equitable adjustment even if your original bid was unbalanced
A contract clause prohibiting unbalanced bids does not prevent you from recovering when work becomes impracticable through no fault of your own
Document all impacts from regulatory changes, safety requirements, or agency directives—these create a basis for equitable adjustment claims