During contract administration, what is the proper procedure when the owner requests a change that will increase the project cost?
Correct Answer
C) Prepare a written change order for approval before proceeding
All changes that affect cost, time, or scope must be documented in writing and approved before proceeding to avoid disputes and ensure proper compensation for additional work.
Why This Is the Correct Answer
Written change orders are legally required for any modifications that affect project cost, schedule, or scope. This protects both the contractor and owner by establishing clear documentation of approved changes before work begins. Proceeding without written approval can lead to payment disputes, legal issues, and potential losses for the contractor. The change order process ensures all parties understand and agree to the modifications and associated costs upfront.
Why the Other Options Are Wrong
Option A: Proceed with the work and bill for extra costs later
Proceeding without written approval creates significant risk of non-payment and disputes, as there's no documented agreement for the extra work and costs
Option B: Refuse the change to avoid complications
Refusing changes unnecessarily damages client relationships and may violate contractual obligations to consider reasonable modifications
Option D: Make the change and absorb the costs
Absorbing costs for owner-requested changes eliminates profit margins and sets a dangerous precedent for future unpaid work
Memory Technique
Use the acronym 'WAP' - Written Approval first, then Proceed with work
Reference Hint
Florida Building Code - Chapter 1, Section 105 (Permits and Inspections) and AIA Contract Documents regarding change order procedures
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