Navigating Cost Adjustments Post-Government Shutdown

A photograph of federal government buildings in Washington D.C., including the U.S. Capitol, under an overcast sky with large red text that reads "SHUT DOWN" super-imposed across the image. A banner on one building states "DUE TO GOVERNMENT SHUTDOWN ALL OPERATIONS SUSPENDED," and there are very few people visible on the street.

The recent 43-day government shutdown has left federal contractors facing increased costs. This analysis outlines five key things contractors must know to recover these expenses, including which FAR clauses apply to your contract, whether you can recover profit, and the strict 20-day and 30-day notice deadlines for filing a claim. Learn how to navigate “constructive acceleration” claims and avoid common pitfalls like signing “no cost” waivers to protect your right to an equitable adjustment.

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