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FAR and DFARS › FAR Part 43: Contract Modifications › Subpart 43.1

FAR 43.102 Policy.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section states that only contracting officers with proper authority can make contract modifications for the Government. It also says modifications should generally be priced before they are executed, and if a significant cost increase is possible and there is no time to negotiate, at least a ceiling price should be set unless that is impractical.

Applies to: Government contracting officers and other Government personnel involved in contract modifications

What it requires

  • Contract modifications should be priced before execution if this can be done without harming Government interests.
  • If a significant cost increase could result and time does not permit price negotiation, negotiate at least a ceiling price unless impractical.

Key terms: contracting officers · contract modifications · scope of their authority · ceiling price · unilaterally

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) Only contracting officers acting within the scope of their authority are empowered to execute contract modifications on behalf of the Government. Other Government personnel shall not—

(1) Execute contract modifications;

(2) Act in such a manner as to cause the contractor to believe that they have authority to bind the Government; or

(3) Direct or encourage the contractor to perform work that should be the subject of a contract modification.

(b) Contract modifications, including changes that could be issued unilaterally, shall be priced before their execution if this can be done without adversely affecting the interest of the Government. If a significant cost increase could result from a contract modification and time does not permit negotiation of a price, at least a ceiling price shall be negotiated unless impractical.

← 43.101 Definitions. · 43.103 Types of contract modifications. →

Rule changes for FAR Part 43

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 43.102 Policy · SpendQuery