Contracts & ExecutionQuestion 214 of 1632
A contractor's bid is $120,000. After the contract is signed, the owner requests an approved change order adding $15,000 of work and a deductive change order removing $4,000. The adjusted contract price is:
a.$120,000
b.$135,000
c.$116,000
d.$131,000
Explanation
Change orders adjust the contract price up and down: $120,000 + $15,000 - $4,000 = $131,000. The adjusted price reflects all signed change orders.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)