Utah Contractor Practice Exam

What is the most reasonable method of preventing disputes about change orders?

1. Explain the change order procedure at the time you request payment for the extra work

2. Wait until a change is necessary before discussing change orders with the owner

3. Include the change order procedure in the original contract

4. Negotiate a price for change orders after all work has been completed

The correct answer is: Include the change order procedure in the original contract

Including the change order procedure in the original contract is a proactive approach that sets clear expectations for both parties from the start of the project. This method establishes a documented framework that outlines how changes will be managed, priced, and approved, which significantly reduces the potential for disputes later on. When the procedure is clearly defined in the contract, it ensures that all parties understand the steps involved in modifying the scope of work, the documentation required, and how to address any additional costs associated with changes. Establishing this understanding early on helps foster collaboration and communication, leading to smoother project execution. It allows for quicker resolution if a change is needed, minimizing misunderstandings that could arise if the process is introduced later in the project. The clarity created by including it in the original documents creates a reference point for both the contractor and the owner, which is crucial when managing the often fluid nature of construction projects. The other methods, such as explaining the procedure at the time of payment or waiting to discuss it until a change is necessary, do not provide the same level of preventive detail and clarity that embedding the procedure in the contract offers. Negotiating the price for changes after the work is completed can lead to conflict as it often results in disagreements about the scope and value of