Which of the following can result in a need for a change order?

Prepare for the Ontario PHBI Financial Planning and Management Test. Study with flashcards and multiple choice questions, each with hints and explanations. Ensure your success with adequate preparation!

A change order is a formal document that modifies an existing contract, often used in project management and construction to specify changes or adjustments to the original agreement. Adjustments to project timelines can necessitate a change order because they can impact the project's scope, resources, and budget. When changes are needed to accommodate delays, reassess project milestones, or extend timelines due to unforeseen issues, a change order becomes essential to document and authorize these modifications formally.

The need for a change order arises from the necessity to maintain clear communication and agreement between all parties involved. When timelines are adjusted, it often requires reevaluation of schedules, resource allocation, and possibly costs, which must all be clearly outlined in a change order to ensure that everyone is aligned on the new expectations and deliverables.

While design changes, invoice discrepancies, and cost overruns can also lead to the need for change orders, they address different aspects of project management. Design changes are a specific type of alteration that may not necessarily involve timeline adjustments, while invoice discrepancies relate to billing issues that may or may not require a change order. Cost overruns typically reflect financial mismanagement or unexpected expenses that could lead to a change order, yet they do not automatically correlate with a timeline change, which is why adjustments to

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