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What should a contractor do if they must increase the contract price due to unforeseen complications?

  1. Should get a loan from the bank

  2. May request assistance from the subcontractor

  3. And the owner must agree to a written and signed change order

  4. Should request the building inspector to revise the specifications

The correct answer is: And the owner must agree to a written and signed change order

In construction contracts, any changes in the scope of work or price require clear communication and mutual agreement between the contractor and the owner. If unforeseen complications arise that necessitate an increase in the contract price, it is essential for the contractor to formally document this change. This is achieved through a change order, which is a written document that outlines the adjustments in cost and possibly in the project timeline as well. The necessity of obtaining the owner’s agreement on this written and signed change order is crucial for several reasons. Firstly, it ensures that the owner is fully informed about the reasons for the price increase and agrees to the new terms. Secondly, having the change order signed protects both parties by serving as a legal record of the modifications to the original contract, thereby minimizing the risk of disputes later on. This process emphasizes transparency and maintains a professional relationship between the contractor and the owner, which is vital in the construction industry.