Which term describes a formal request to modify a contract that may increase costs?

Which term describes a formal request to modify a contract that may increase costs?

• A. Supplemental Agreement
• B. Reprogramming Action
• C. Change Order
• D. Gantt Chart

Answer: (C)

Change orders are the formal way to modify a contract after it’s signed. When the scope, materials, or timing shifts, a change order documents the agreed adjustments to the contract terms, including any new costs or changed deadlines. It becomes part of the contract, ensuring both parties recognize and authorize the cost impact. While a Supplemental Agreement can modify terms, the change order is the standard mechanism specifically used to capture and authorize cost-containing modifications to the contract. Reprogramming actions deal with shifting funds in a budget, not altering contract terms, and a Gantt chart is simply a schedule visualization. So the change order best fits a formal request that may increase costs.

Change orders are the formal way to modify a contract after it’s signed. When the scope, materials, or timing shifts, a change order documents the agreed adjustments to the contract terms, including any new costs or changed deadlines. It becomes part of the contract, ensuring both parties recognize and authorize the cost impact. While a Supplemental Agreement can modify terms, the change order is the standard mechanism specifically used to capture and authorize cost-containing modifications to the contract. Reprogramming actions deal with shifting funds in a budget, not altering contract terms, and a Gantt chart is simply a schedule visualization. So the change order best fits a formal request that may increase costs.