North Carolina Building Contractor License Practice Exam

Which type of document formalizes changes to a signed contract?

1. Change order

2. Work order

3. Progress report

4. Invoice

The correct answer is: Change order

A change order is the document that formalizes changes to a signed contract. This type of document outlines modifications to the original agreement, including alterations in project scope, additional work, adjustments in pricing, and changes to timelines. It serves as a legally binding record that both parties must agree upon to ensure that the modifications are acknowledged and accepted. Change orders are crucial in construction projects since they help manage unforeseen circumstances or required adjustments while maintaining clarity and legal standing in the contractual relationship. They protect both the contractor and the client by ensuring that all changes are documented and authorized before any work is performed. In contrast, a work order typically refers to a request for work to be performed and is not necessarily formalized as a change to the contract itself. A progress report provides updates on the project’s status but does not amend the contract terms. An invoice is a bill for services rendered and does not document any changes to the original contract, focusing instead on payment for work completed.