A written construction contract change order should include a description of the modification to be made, any change in contract time, and what else?

Get ready for the Contractors Business and Law Exam. Enhance your study experience with flashcards and diverse multiple-choice questions. Each question is designed with hints and thorough explanations to boost your readiness for success!

A written construction contract change order is a critical component that formalizes any amendments to the original agreement between the parties. It serves to document any modifications, ensuring clarity and mutual understanding of the new terms.

Including a change in the contract dollar amount is essential because it transparently outlines the financial implications of the changes being made. This allows both parties to recognize how the modifications affect the overall cost of the project. Failure to explicitly mention the revised contract amount can lead to disputes over payment and project budgeting, which can complicate the contractor-client relationship and potentially delay the project's progress.

Other aspects, such as the change in the contractor's schedule or the reasons for the change, while important in the context of managing the project, do not directly address the monetary adjustments that may arise from modifications. Similarly, listing subcontractors involved, while relevant for understanding the scope of the work, does not pertain to the financial changes implied by the change order. Thus, documenting the change in the contract dollar amount is crucial for preventing misunderstandings and ensuring that both parties are in agreement about the financial terms of the revised arrangement.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy