FAR 43.203 Change order accounting procedures
Section Federal Acquisition Regulation
Facts
- Citation
- FAR 43.203
- Type
- Section
- Text as of
- FAC 2026-01
- Official text
- acquisition.gov
Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this section.
Text
(a) Contractors’ accounting systems are seldom designed to segregate the costs of performing changed work. Therefore, before prospective contractors submit offers, the contracting officer should advise them of the possible need to revise their accounting procedures to comply with the cost segregation requirements of the Change Order Accounting clause at 52.243-6.
(b) The following categories of direct costs normally are segregable and accountable under the terms of the Change Order Accounting clause:
(1) Nonrecurring costs (e.g., engineering costs and costs of obsolete or reperformed work).
(2) Costs of added distinct work caused by the change order (e.g., new subcontract work, new prototypes, or new retrofit or backfit kits).
(3) Costs of recurring work (e.g., labor and material costs).
Sections cited
- FAR 52.243-6 Change Order Accounting
Quick answers
What is FAR 43.203?
FAR 43.203 is a section of the Federal Acquisition Regulation, titled "Change order accounting procedures".
Are changes to FAR 43.203 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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