Utah Contractor Practice Exam 2026 - Free Contractor License Practice Questions and Study Guide

Question: 1 / 770

Why does a contractor keep change orders on file?

For tax purposes

To get paid when the job is over

By law

Keeping change orders on file serves important legal and operational purposes for contractors. By maintaining a record of change orders, contractors ensure compliance with various laws and regulations governing construction projects. Legal documentation is essential to clarify the scope of work, changes to the original contract, and any adjustments in costs or timelines. In the event of disputes, having these records on hand can provide necessary evidence to resolve issues related to the project, which can be critical if legal action is taken or if there's a need for mediation or arbitration. Thus, proper documentation of change orders is both a best practice and a legal necessity in the construction industry.

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