Which term is a formal request to modify a contract, potentially leading to additional costs?

Which term is a formal request to modify a contract, potentially leading to additional costs?

• A. Change Order
• B. Supplemental Agreement
• C. Lag
• D. Finish-to-Start Relationship

Answer: (B)

A change order is the formal instrument used to request modifications to a contract's scope, price, or schedule. It documents exactly what is changing, why the change is needed, the cost impact, and any schedule adjustments, and it requires written approval from the authorized parties before it becomes binding. This formal process is what allows a project to handle additional costs and time changes in a controlled, documented way, preventing informal or unilateral alterations. A supplemental agreement, while related, is a separate contract amendment that may reflect negotiated changes after the fact and isn’t the standard mechanism that initiates a change with cost implications. Lag and finish-to-start relationship are scheduling concepts, not contract modification mechanisms.

A change order is the formal instrument used to request modifications to a contract's scope, price, or schedule. It documents exactly what is changing, why the change is needed, the cost impact, and any schedule adjustments, and it requires written approval from the authorized parties before it becomes binding. This formal process is what allows a project to handle additional costs and time changes in a controlled, documented way, preventing informal or unilateral alterations. A supplemental agreement, while related, is a separate contract amendment that may reflect negotiated changes after the fact and isn’t the standard mechanism that initiates a change with cost implications. Lag and finish-to-start relationship are scheduling concepts, not contract modification mechanisms.