North Carolina Building Contractor License Practice Exam

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Changes to the project award are called addenda. Changes after the contract award is signed are called what?

Modifications
Adjustments
Amendments
Supplements

The correct answer is: Modifications

Changes made to the project after the contract award is signed are correctly referred to as modifications. In the context of construction contracts, modifications are adjustments that either alter the terms of the contract or change the scope of work originally agreed upon. These changes can be necessitated by various factors, such as unforeseen conditions, design changes, or changes in the project’s timeline or cost structure. Modifications serve as formal changes that require documentation to ensure that all parties involved have a clear understanding of the new terms and other relevant details. This is essential for maintaining transparency and protecting the interests of both contractors and clients. While the terms adjustments, amendments, and supplements may resemble modifications in everyday conversation, they carry different legal implications and usages within the construction and contractual framework. For example, amendments typically refer to changes in the written document itself, often in a more permanent manner. Understanding these distinctions is crucial for effective contract management.