How does A201 allocate risk when changes to the work affect price?

• A. Changes have no impact on contract sum or time.
• B. Changes in the work result in adjustments to contract sum and/or time, via Change Orders or CCDs; price/time changes reflect actual costs.
• C. All changes are absorbed by the Owner with no adjustment.
• D. Changes require only time extension with no cost change.

Answer: (B)

When changes to the work affect price under A201, the contract uses formal mechanisms to change the agreement itself. If the scope changes, the contract sum and/or the completion time are adjusted through Change Orders or Construction Change Directives. A Change Order is a mutual agreement between Owner and Contractor that updates the contract sum and/or schedule to reflect the new work. A Construction Change Directive lets the Architect direct a change in the work before price and schedule are settled; once the work is completed, a Change Order then adjusts the price and time to reflect actual costs. The important point is that price and schedule changes must align with actual costs and approved adjustments, rather than being absorbed automatically or handled only as a time extension. This structure allocates the risk of changes to the appropriate party and ensures the project remains financially and temporally accurate.