What effect does a Change Order have on the contract sum?

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Prepare for the AIA Contract Document A201 with engaging flashcards and multiple-choice questions. Understand contract fundamentals and get ready to excel in your exam with detailed hints and explanations.

Multiple Choice

What effect does a Change Order have on the contract sum?

Explanation:
Change Orders formalize approved changes in the work and adjust the contract sum to reflect those changes. When a Change Order is approved and signed, the amount of money the owner will pay to the contractor is increased or decreased to cover the added or omitted work. Time adjustments can accompany the change, but the financial effect is the change to the contract sum itself. It does not leave the sum unchanged, it does not void the contract, and it isn’t solely about delaying the schedule.

Change Orders formalize approved changes in the work and adjust the contract sum to reflect those changes. When a Change Order is approved and signed, the amount of money the owner will pay to the contractor is increased or decreased to cover the added or omitted work. Time adjustments can accompany the change, but the financial effect is the change to the contract sum itself. It does not leave the sum unchanged, it does not void the contract, and it isn’t solely about delaying the schedule.

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