Louisiana Contractors License Practice Exam

What is a Change Order?

1. A final project assessment

2. A written agreement to modify the contract

3. A method for contractor bidding

4. A performance appraisal of the contractor

The correct answer is: A written agreement to modify the contract

A Change Order is fundamentally a formal and documented agreement between the contractor and the client that modifies the original contract. This could involve changes in the scope of work, adjustments to project timelines, alterations to project costs, or any other specified modifications to the contract. By providing a written record, a Change Order helps ensure that both parties have a clear understanding of the new terms and any impacts these changes may have on the project. This is crucial for maintaining clarity and accountability throughout the construction process, as it prevents misunderstandings and disputes later on. Ensuring that any alterations to the project are captured in writing is a best practice in contract management within the construction industry.