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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.

Answer Options
A
Proceed with the work and bill for extra costs later
B
Make the change and absorb the costs
C
Prepare a written change order for approval before proceeding
D
Refuse the change to avoid complications

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

Refusing changes unnecessarily damages client relationships and may violate contractual obligations to consider reasonable modifications

Option D: Refuse the change to avoid complications

Proceeding without written approval creates significant risk of non-payment and disputes, as there's no documented agreement for the extra work and costs

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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