Arizona Contractors License Practice Exam

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What is the term used for an agreement that outlines changes to the scope of work in a construction contract?

A change of order
A contract variation
A project amendment
A scope adjustment

The correct answer is: A change of order

The term "change order" refers to a formal document that alters the original construction contract's scope of work, schedule, or cost. This document is essential in construction management as it provides a clear record of modifications requested by either the contractor or the client, ensuring that all parties understand and agree to the new terms before moving forward. Change orders are crucial for maintaining project clarity and legality, allowing for adjustments due to unforeseen circumstances or changes in project requirements while keeping the project on track. In the context of the other options, "contract variation," while close in meaning, generally refers to modifications to the terms of a contract in broader legal contexts and may not always specifically pertain to construction. "Project amendment" and "scope adjustment" are also used less frequently in industry practice and can possess different connotations, making "change order" the most widely recognized and utilized term for formal modifications to construction contracts.