Florida Building Contractor Business/Finance Practice Exam

Change order pricing refers specifically to the estimated costs that arise when changes are made to a construction contract after the project has commenced. This concept is essential in construction management as it allows for adaptations in the original contract based on new requirements or unforeseen conditions. When a client requests alterations—whether it's changes in design, materials, or scope—they generally require an adjustment to the original budget. Change order pricing helps quantify these modifications, ensuring both the contractor and client understand the financial implications of such changes.

The importance of accurately assessing change order pricing lies in its impact on project timelines and budgets. It helps protect both parties by providing a clear, agreed-upon cost for the changes, thereby preventing disputes. Understanding change order pricing is crucial for contractors to manage their finances effectively and maintain profitability throughout a project.