What does the amount of the change order reflect?

• A. The architect's fees and overhead
• B. The differences between the actual costs and allowances as well as changes in the contractor's costs
• C. The owner's contingency and interest
• D. The subcontractor's costs only

Answer: (B)

Change orders are used to adjust the contract sum when the scope of work changes. The amount shown on a change order represents the net cost impact of that change: it includes the difference between what the work will actually cost and what was assumed in the contract’s allowances, plus any changes in the contractor’s costs caused by the change (such as labor, materials, equipment, subcontractors, and related overhead). This captures the full financial effect of the change, not just a single component. It isn’t limited to the architect’s fees and overhead, nor is it simply the owner’s contingency or only subcontractor costs.