A change order increases the contract value by $45,000 and extends the completion date by 12 days. The original contract was $780,000 with a 120-day duration. What is the new contract value and duration?
Correct Answer
A) $825,000 and 132 days
The change order increases both the contract value and duration. New contract value: $780,000 + $45,000 = $825,000. New duration: 120 + 12 = 132 days.
Why This Is the Correct Answer
Change orders modify both contract value and duration when specified. The problem clearly states the change order increases the contract value by $45,000 and extends completion by 12 days. Both modifications must be applied to the original contract terms. This is a straightforward addition problem requiring you to add both the monetary increase and time extension to their respective original values.
Why the Other Options Are Wrong
Option B: $825,000 and 120 days
This option correctly calculates the new contract value ($825,000) but fails to account for the time extension. The duration remains at the original 120 days instead of adding the 12-day extension, which would violate the change order terms.
Option C: $780,000 and 132 days
This option correctly calculates the new duration (132 days) but fails to account for the contract value increase. The value remains at the original $780,000 instead of adding the $45,000 increase specified in the change order.
Option D: $735,000 and 108 days
This option incorrectly subtracts both the money and time from the original contract values instead of adding them. The change order specifies increases, not decreases, making this mathematically and contractually incorrect.
Memory Technique
Remember 'Change orders CHANGE everything mentioned' - if both money and time are specified, both must be modified from the original contract terms.
Reference Hint
Florida Building Code - Chapter 1, Section 105 (Permits and Change Orders) or Construction Contract Administration sections
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