Utah General Contractors - Business and Law Practice Exam

What should be done if changes to the original contract occur?

1. Document it verbally among parties

2. Write a "Change Order" and get signatures

3. Ignore it if it benefits the project

4. Only inform the owner of the changes

The correct answer is: Write a "Change Order" and get signatures

Writing a "Change Order" and obtaining signatures is the appropriate course of action when changes to the original contract occur. This process ensures that all parties involved formally agree to the changes, which protects them legally and provides a clear record of what modifications were made to the original terms of the contract. A Change Order outlines the specifics of the changes, including any adjustments to cost or timeline, and requires the signatures of all relevant parties to show that they acknowledge and accept the new terms. This method is vital in construction and contracting, as it helps prevent misunderstandings or disputes that might arise from verbal agreements or assumptions made during the project. By documenting changes in writing, all parties maintain a clear and updated understanding of their commitments and obligations, which can be referred back to for clarity if issues arise later in the project. In professional contracting practices, transparency, and formal communication are critical to maintaining relationships and ensuring all parties are held accountable to the updated contract terms.