A subcontractor sends a price increase after completing added work that was never approved in the owner contract. What should the prime contractor avoid doing?
Correct Answer
D) Passing the amount to the owner as an automatic change order.
An owner change should not be treated as automatic when the written owner contract was never changed; authorization and documentation must be reviewed.
Why This Is the Correct Answer
An owner change should not be treated as automatic when the written owner contract was never changed; authorization and documentation must be reviewed.
Why the Other Options Are Wrong
Option A: Reviewing the subcontract and project records.
Reviewing the subcontract and project records. skips the written authority, scope, price, notice, or release control needed for project contracts.
Option B: Documenting why the added work was or was not authorized, before discussing responsibility with the owner.
Documenting why the added work was or was not authorized, before discussing responsibility with the owner. skips the written authority, scope, price, notice, or release control needed for project contracts.
Option C: Resolving responsibility under the written agreements.
Resolving responsibility under the written agreements. skips the written authority, scope, price, notice, or release control needed for project contracts.
Memory Technique
Handling Disputed shortcut is not a term until paper carries it.
Reference Hint
Study anchor (closed-book): memorize Project contracts from CSLB 2026 Law Book; California contract administration practice / CSLB Law Book contract price and change documentation; know the rule or calculation trigger without relying on exam-room lookup.
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