Utah General Contractors - Business and Law Practice Exam

What document might a contractor provide to outline changes and additional costs involved in a project?

1. Contract Amendment

2. Change Order

3. Financial Statement

4. Project Timeline

The correct answer is: Change Order

A contractor would provide a Change Order to outline changes and additional costs involved in a project. A Change Order is a formal document that serves as a means of modifying the original construction contract. It details modifications in the scope of work, which could arise from client requests, unforeseen circumstances, or necessary adjustments to project plans. This document is crucial as it not only specifies the nature of the changes but also provides a breakdown of any additional costs incurred as a result of those changes. By having a Change Order, all parties maintain clarity and agreement on what modifications have been accepted and how they will impact the overall budget and schedule of the project. In contrast, a Contract Amendment typically involves more comprehensive changes to the entire agreement and might not focus solely on specific changes or costs. A Financial Statement generally conveys an overview of a contractor's financial position and does not specifically address project changes. Lastly, a Project Timeline outlines the schedule of tasks and milestones but does not detail changes or additional costs related to those tasks.