Utah Contractor Practice Exam

If a client continuously requests change orders, what should be your approach?

1. Charge administrative fees

2. Collect change order costs as you go

3. Not proceed until your client has signed each change order

4. All of the above

The correct answer is: All of the above

When dealing with a client who repeatedly requests change orders, it's essential to adopt a comprehensive approach that protects both your interests and maintains a positive working relationship. Including all mentioned strategies in your approach serves to address the complexities of change orders effectively. Charging administrative fees for handling frequent change orders can serve as a way to offset additional administrative costs that arise from constant adjustments and ensures that your business remains financially viable. This underscores the importance of acknowledging the extra work involved in processing these requests. Collecting change order costs as you go is a prudent cash flow management strategy. This not only reinforces the importance of proper budgeting for the project but also minimizes the risk of accumulating a large amount owed at the end of the job, which could strain the client’s budget and create friction. Finally, not proceeding with any work until each change order has been signed protects you from misunderstandings and miscommunications that may arise from verbal agreements or assumptions. Requiring signatures on change orders helps to clarify the scope of work being altered and sets clear expectations for both parties, ultimately fostering accountability. Incorporating all these strategies into your approach provides a well-rounded method for managing change order requests while ensuring that both the contractor and the client have a clear and equitable understanding of the project's scope and costs.