An agreement to pay reasonable additional compensation to a contractor for the performance of a pre-existing contract when the contractor faces extraordinary circumstances caused by unforeseen difficulties is called a:
A) good-faith adjustment.
B) bribe.
C) compensatory allowance.
D) relief payment.

Question

Quizplus · Accepted Answer

A good-faith adjustment is a fair and reasonable compensation adjustment made to a contractor in goodwill due to unforeseen difficulties beyond their control, allowing them to complete the pre-existing contract. It is a just resolution to unforeseeable circumstances that may have jeopardized the contractor's ability to deliver on their promises. Bribe, compensatory allowance, and relief payment do not correctly describe the situation.

An Agreement to Pay Reasonable Additional Compensation to a Contractor