Change orders are required when which change occurs?

Change orders are required when which change occurs?

• A. Subcontractor addition
• B. Schedule adjustment
• C. Contract amount is changed
• D. Change in project owner

Answer: (C)

Change orders are written modifications to a contract that document changes in price, time, or scope after the contract has been awarded. The reason this is the best choice is that any change that alters the contract sum must be formalized in a change order so the new price is agreed to in writing by both parties. This creates a clear, enforceable record for additional or reduced costs and prevents disputes over payment for the extra work. Subcontractor additions or schedule adjustments can involve updates, but they’re not inherently about changing the contract amount. They may be handled by other documents, and a change in project ownership is not a direct contract term change under the existing agreement—it usually requires a new contract or assignment rather than a standard change order.

Change orders are written modifications to a contract that document changes in price, time, or scope after the contract has been awarded. The reason this is the best choice is that any change that alters the contract sum must be formalized in a change order so the new price is agreed to in writing by both parties. This creates a clear, enforceable record for additional or reduced costs and prevents disputes over payment for the extra work.

Subcontractor additions or schedule adjustments can involve updates, but they’re not inherently about changing the contract amount. They may be handled by other documents, and a change in project ownership is not a direct contract term change under the existing agreement—it usually requires a new contract or assignment rather than a standard change order.