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What is the primary reason for a contractor to write a formal change order?

  1. To maintain legal protection

  2. To ensure higher pay

  3. To avoid conflicts with clients

  4. To comply with company policy

The correct answer is: To maintain legal protection

A formal change order serves as a crucial document within construction projects, providing legal protection for both the contractor and the client. It outlines any changes to the original contract, such as modifications in scope, timelines, or costs. By documenting these changes formally, the contractor ensures that there is a mutual understanding and agreement on the new terms, which can be essential if disputes arise later. This legal protection becomes significant in safeguarding the contractor’s rights and responsibilities, helping to minimize potential financial risks associated with unapproved changes.