Business FinancesQuestion 1197 of 1605
A written, signed change order is important because it:
a.Cancels the original contract
b.Reduces sales tax on the added materials
c.Eliminates the need for a building permit
d.Documents the agreed scope and price change, protecting the contractor's right to be paid
Explanation
A signed change order records the modified scope, price, and any schedule impact before extra work proceeds. It protects the contractor's right to collect for the additional work and prevents disputes over 'extras.'
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)