I 
116TH CONGRESS 
2D SESSION 
H. R. 7320 
To amend the Small Business Act to require equitable adjustments to certain 
construction contracts, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 24, 2020 
Mr. STAUBER (for himself and Mr. GOLDEN) introduced the following bill; 
which was referred to the Committee on Small Business 
A BILL 
To amend the Small Business Act to require equitable ad-
justments to certain construction contracts, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. EQUITABLE ADJUSTMENTS TO CERTAIN CON-
STRUCTION CONTRACTS. 
(a) IN GENERAL.—The Small Business Act (15 
U.S.C. 631 et seq.) is amended by inserting after section 
15 the following new section: 
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‘‘SEC. 15a. EQUITABLE ADJUSTMENTS TO CONSTRUCTION 
CONTRACTS. 
‘‘(a) REQUEST FOR AN EQUITABLE ADJUSTMENT.— 
A small business concern performing a construction con-
tract that was awarded by an agency may submit a re-
quest for an equitable adjustment to the contracting offi-
cer of such agency if the contracting officer directs a 
change in the work within the general scope of the con-
tract without the agreement of the small business concern. 
Such request shall— 
‘‘(1) be timely made pursuant to the terms of 
the contract; and 
‘‘(2) comply with Federal regulations regarding 
equitable adjustments, including specifying addi-
tional costs resulting from such change in the work 
within the general scope of the contract. 
‘‘(b) AMOUNT.—Upon receipt of a request for equi-
table adjustment under subsection (a), the agency shall 
provide to the small business concern an interim partial 
payment in an amount that is at least 50 percent of the 
costs identified in the request for equitable adjustment 
under subsection (a)(2). 
‘‘(c) LIMITATION.—Any interim partial payment 
made under this section shall not be deemed to be an ac-
tion to definitize the request for an equitable adjustment. 
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‘‘(d) FLOW-DOWN OF INTERIM PARTIAL PAYMENT 
AMOUNTS.—A small business concern that requests an eq-
uitable adjustment under this section shall pay to a first 
tier subcontractor or supplier the portion of the interim 
partial payment received that is attributable to the in-
creased costs of performance incurred by the first tier sub-
contractor or supplier due to the change in the work with-
in the general scope of the contract. A subcontractor or 
supplier at any tier that receives a portion of an interim 
partial payment under this section shall pay its subcon-
tractor or supplier the appropriate portion of such pay-
ment.’’. 
(b) IMPLEMENTATION.—The Administrator of the 
Small Business Administration shall implement the re-
quirements of this section not later than the first day of 
the first full fiscal year beginning after the date of the 
enactment of this Act. 
Æ 
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