Utah Contractor Practice Exam

Which option is necessary for raising the contract price legally?

1. Verbal agreement from the owner

2. New contractor's bid

3. A written and signed change order

4. A consultation with a legal adviser

The correct answer is: A written and signed change order

Raising the contract price legally requires a written and signed change order. A change order serves as a formal amendment to the existing contract, documenting any modifications to the scope of work, timeline, or financial terms that both parties have agreed upon. This written documentation is crucial because it provides a clear record of the changes, protects the rights of both the contractor and the owner, and helps avoid any misunderstandings or disputes in the future. In most construction contracts, it’s a standard practice to stipulate that any changes to the contract must be executed in writing. This requirement ensures that both parties have a mutual understanding of the changes and agree to the new terms, which adds a layer of legal protection should issues arise later on. While verbal agreements or consultations may be part of the discussions leading up to a change order, they do not hold the same legal weight and can lead to complications if there are discrepancies later on. The requirement for an updated bid from the contractor could inform the change order but does not itself constitute a change order, and consulting a legal adviser can provide guidance but isn't a necessary step for the actual price change. Hence, a written and signed change order is essential to ensure legal validity when raising the contract price.