What is a prudent step to reduce change-order disputes?

What is a prudent step to reduce change-order disputes?

• A. Include a change order procedure in the original contract
• B. Avoid documenting changes
• C. Allow changes verbally only
• D. Limit changes to one per project

Answer: (A)

Having a written change order procedure in the contract ensures any modification to scope, cost, or schedule is documented, priced, and approved before work continues. It defines who can authorize changes, how pricing is calculated, how the schedule is adjusted, and the form and signatures required. This clarity reduces opportunities for disagreement because both parties know the process and have a written record to reference. Verbal changes or undocumented adjustments lead to disputes because there’s no verifiable evidence of what was agreed. Limiting changes to one per project or avoiding documentation does not address how changes should be managed and recorded, so those approaches can actually increase disputes.

Having a written change order procedure in the contract ensures any modification to scope, cost, or schedule is documented, priced, and approved before work continues. It defines who can authorize changes, how pricing is calculated, how the schedule is adjusted, and the form and signatures required. This clarity reduces opportunities for disagreement because both parties know the process and have a written record to reference. Verbal changes or undocumented adjustments lead to disputes because there’s no verifiable evidence of what was agreed. Limiting changes to one per project or avoiding documentation does not address how changes should be managed and recorded, so those approaches can actually increase disputes.