In a situation where a unilateral change is issued, what is a contractor's obligation?

• A. The contractor must cease all work immediately
• B. The contractor must continue performance as changed
• C. The contractor is exempt from performance obligations
• D. The contractor must renegotiate the contract terms

Answer: (B)

When a unilateral change is issued in a contract, the contractor's obligation is to continue performance as changed. This means that despite the alterations made to the contract, the contractor is required to carry on with the work as outlined in the modified terms. A unilateral change typically arises from the contracting officer's right to make changes within the general scope of the contract, and it is essential for maintaining the continuity of the project's progress.

Continuing performance under the changed terms ensures that the project remains on track and that the contractual relationship is upheld. It reflects the principle that both parties are obligated to meet their responsibilities under the contract while also allowing for necessary adjustments.

While renegotiation might seem like a possible route, it is not the contractor's immediate obligation following a unilateral change. The contractor does have the right to request an adjustment in the contract terms regarding price or time but must first proceed with the work as directed. Stopping work entirely or claiming exemption from obligations could lead to a breach of contract, which could have legal or financial repercussions. Thus, the requirement to continue performance is essential for both compliance with the contract and the overall success of the project.