FEDERALCourt of Appeals for the Federal Circuit
1995

Reflectone, Inc. v. John H. Dalton, Secretary of the Navy

60 F.3d 1572Court of Appeals for the Federal Circuit • Decided 1995Reversed
FLAGSHIPDispute ResolutionChange OrderCited 325 times

HOLDING

Reflectone, a Navy contractor, submitted a Request for Equitable Adjustment (REA) for additional payment without a pre-existing dispute. The Navy argued this wasn't a valid claim under the Contract Disputes Act because no dispute existed yet. The Federal Circuit reversed, ruling that a contractor can file a claim by making a written demand for payment as a matter of right, even if the government hasn't yet disagreed. This matters because subcontractors can now demand payment for extra work without waiting for the owner to formally dispute the amount.

KEY FINDINGS

Dispute Resolution

You can submit a claim for extra work (like a change order request) without the owner first disagreeing—a written demand for payment is enough to start the dispute resolution process.

Change Order

Document your demand clearly: state the amount owed, explain why you're entitled to it, and make it clear you're demanding payment as a contractual right, not just asking a question.

FULL COURT OPINION