Utah Contractor Practice Exam

Which element is necessary for a change order to be binding?

1. Date of original contract

2. Signatures of both parties

3. Contractor's surety company

4. Signature of the homeowner only

The correct answer is: Signatures of both parties

A change order is a formal document that modifies the original construction contract, detailing alterations in scope, price, or time. For a change order to be binding, it is essential that it includes the signatures of both the contractor and the homeowner. This mutual agreement signifies that both parties have acknowledged and accepted the proposed changes. The necessity of both parties' signatures ensures that there is no misunderstanding regarding the modifications being made to the contract. It creates a clear record of consent that can be referred to should disputes arise. Involving both parties also protects their interests, providing a rights framework that is legally enforceable. While the date of the original contract, the contractor's surety company, and the signature of just the homeowner can be relevant in different contexts, they do not fulfill the legal requirement for binding changes made through a change order. The focus is on the agreement between the contractor and the homeowner, highlighting the importance of collaborative consent in contractual modifications.