Who Actually Has Authority on a Federal Construction Project

Introduction

Federal construction projects operate within a defined contractual authority structure. While many individuals participate in project execution — including inspectors, engineers, project managers, and contracting officials — not all of these participants possess authority to interpret the contract or direct changes to the work.

Misunderstanding this authority structure is one of the most common causes of disputes in federal construction. Contractors frequently assume that technical representatives, inspectors, or designers can authorize deviations from the contract requirements. In reality, federal construction contracts clearly establish where contractual authority resides.

Understanding who has authority — and who does not — is critical to maintaining compliance with the contract.

The Contracting Officer

The Contracting Officer (KO) holds the primary authority for federal construction contracts.

Under FAR 1.602-1(a):

“Contracting officers have authority to enter into, administer, or terminate contracts and make related determinations and findings.”

This authority includes the ability to:

• interpret the contract

• authorize changes

• approve substitutions

• resolve disputes

• enforce compliance with contract requirements

In federal construction projects, the Contracting Officer is the only individual with authority to modify the contract terms.

Even when technical staff participate in project administration, their actions cannot alter the contract unless the Contracting Officer authorizes the change.

The Administrative Contracting Officer (ACO)

On some projects, certain administrative functions may be delegated to an Administrative Contracting Officer (ACO).

An ACO may be authorized to perform contract administration tasks such as:

• processing modifications

• managing contract performance

• coordinating administrative actions

However, the ACO’s authority is limited to the scope of delegation issued by the Contracting Officer.

The ACO does not possess independent authority beyond the responsibilities assigned through that delegation.

The Contracting Officer’s Representative (COR)

Federal projects often assign a Contracting Officer’s Representative (COR) to assist with contract oversight.

Under FAR 1.602-2(d), the Contracting Officer may designate a COR to perform specific monitoring and administration functions.

Typical COR responsibilities include:

• monitoring contractor performance

• reviewing technical submissions

• documenting project activities

• communicating technical observations to the Contracting Officer

However, the COR cannot:

• change contract requirements

• authorize additional work

• approve substitutions

• modify specifications

The COR’s authority is limited to the responsibilities identified in the written designation issued by the Contracting Officer.

Resident Engineers and Project Engineers

On many federal construction projects, particularly those administered by agencies such as the U.S. Army Corps of Engineers, day-to-day project administration is performed by Resident Engineers or Project Engineers.

These personnel manage construction activities, coordinate inspections, and oversee contractor compliance with the contract requirements.

While they may provide direction regarding administrative procedures or coordination matters, they do not possess authority to modify the contract.

If a situation requires interpretation of the contract requirements or approval of a change, the matter must ultimately be resolved by the Contracting Officer.

Inspectors

Inspectors play a critical role in federal construction projects by verifying that work performed by the contractor complies with the contract requirements.

Inspection responsibilities typically include:

• observing construction activities

• documenting project conditions

• verifying compliance with drawings and specifications

• identifying deficiencies requiring correction

However, inspectors do not possess authority to direct contractor means and methods or authorize changes to the work.

Their role is limited to observation, documentation, and communication of compliance issues through the appropriate contract administration channels.

The Designer of Record

The Designer of Record (DOR) is responsible for the technical design of the project and may assist the Government in interpreting the design intent of the contract documents.

The Designer of Record may provide technical clarification during the RFI process when questions arise regarding drawings or specifications.

However, design clarification does not modify the contract.

If a proposed interpretation or design change affects the contract requirements, the determination must still be made by the Contracting Officer.

Why Authority Is Frequently Misunderstood

Federal construction projects involve many technical professionals, which can create the impression that authority is distributed among various project participants.

In practice, the contract structure is much more centralized.

Technical personnel may provide expertise and recommendations, but the authority to interpret and modify the contract remains with the Contracting Officer.

When contractors rely on informal approvals or technical discussions rather than formal contract decisions, disputes often arise regarding whether work was authorized.

Practical Guidance for Contractors

Contractors can avoid many contract administration issues by recognizing the difference between technical guidance and contractual authority.

If a question involves clarification of the contract documents, the appropriate mechanism is typically a Request for Information (RFI).

If a contractor proposes a material or product that differs from the contract requirements, the request must be evaluated under the provisions of FAR 52.236-5 Material and Workmanship.

If a proposed action would change the contract requirements, the matter must be addressed through the contract modification process under the authority of the Contracting Officer.

Conclusion

Federal construction projects involve multiple participants who contribute to project execution and oversight. However, the authority to interpret and modify the contract is centralized within the role of the Contracting Officer.

Understanding this authority structure helps contractors communicate effectively with the Government, prevents unauthorized changes to the work, and reduces the risk of disputes arising from misunderstandings about who has authority on the project.