CCA Construction Change Orders and Claims

Question 1

A construction change order is a formal written agreement that modifies the original contract by adjusting:

Accepted Answer

Scope, price, and/or schedule as mutually agreed by owner and contractor

Answer

Only the project schedule

Answer

Only the contractor's profit margin

Answer

The subcontractor's bonding requirements

Question 2

Which red flag suggests that a contractor may be using change orders to recover costs that should have been included in the original bid?

Accepted Answer

A high volume of change orders for items that were reasonably foreseeable at bid time

Answer

A small number of change orders for genuinely unforeseen conditions

Answer

Owner-directed scope additions with supporting documentation

Answer

Schedule extensions for severe weather events

Question 3

A 'constructive change' in construction contracting occurs when:

Accepted Answer

Owner actions or inactions effectively require the contractor to perform extra work without a formal change order

Answer

The owner issues a formal written change order

Answer

The contractor voluntarily performs additional work

Answer

A subcontractor modifies the scope unilaterally

Question 4

Which document provides the most reliable contemporaneous evidence to support a contractor's claim for additional compensation due to a differing site condition?

Accepted Answer

Daily field reports, photographs, and third-party geotechnical data recorded at the time of discovery

Answer

Contractor's post-project narrative

Answer

Contractor's financial statements

Answer

Owner's meeting minutes from project kickoff

Question 5

Under most standard construction contracts, a contractor who proceeds with disputed work without a reservation of rights typically:

Accepted Answer

Waives the right to claim additional compensation for that work

Answer

Preserves full claim rights

Answer

Accelerates payment

Answer

Increases their contract price automatically

Question 6

A construction auditor reviewing change order documentation should verify that each change order includes:

Accepted Answer

Detailed scope description, cost breakdown, schedule impact, and authorized signatures from both parties

Answer

Only the contractor's signature

Answer

The subcontractor's bonding information

Answer

The contractor's overhead allocation method