Construction Estimating 2 Practice Exam

Change orders are essential documents in construction management that formally modify the original construction contract. The statement regarding cost and time adjustments is accurate because change orders typically arise due to unexpected conditions, client requests for modifications, or design changes, which can impact both the project's budget and completion timeline.

When a change order is approved, it results in a documented increase or decrease in the contract sum or a change in the project schedule. These adjustments must be agreed upon by both parties, ensuring that the contractor is compensated for additional work or that the project timeline is adjusted accordingly. This process is critical for maintaining clarity and accountability throughout the construction process.

Change orders are formally documented; while they might not be initiated by just one party (they can also be requested by the owner or project manager), they are part of standard practice in construction contracts, ensuring that any alterations are recognized and managed correctly.