Utah Contractor Practice Exam

If a client frequently requests change orders, what should you do?

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 frequently requests change orders, it is essential to adopt a comprehensive approach to ensure clarity, manage expectations, and protect your business interests. The correct answer encompasses multiple strategies that are beneficial in this scenario. First, charging administrative fees can be a reasonable course of action. Frequent changes to a project can incur additional time and resources spent on revising plans, communicating adjustments, and processing change orders. By implementing administrative fees, you can counterbalance the additional workload caused by these changes. Collecting change order costs as you go is another effective strategy. This allows you to maintain a clear accounting of the changes and their associated costs right from the outset. It avoids the risk of accumulating significant expenses that might surprise the client later on, fostering transparency around financial responsibilities. Not proceeding until the client has signed each change order ensures that there is a mutual understanding and agreement regarding the scope and cost of the work being modified. This practice protects both you and the client by confirming that all parties acknowledge and consent to the changes before any additional work is undertaken, thereby preventing disputes or misunderstandings later. Using all of these strategies in conjunction provides a well-rounded approach to managing frequent change orders. It promotes a structured process that can lead to smoother project management and