CASBO Chief Business Official (CBO) Practice Test

What is the purpose of written change orders in contract management?

They replace the original contract They are optional They document modifications to the contract and track scope and cost changes They require new bidding

Correct Answer:

They document modifications to the contract and track scope and cost changes

Explanation:

Written change orders are the formal tool used to document modifications to an existing contract. They provide an approved, auditable record of changes in scope, schedule, and cost, showing exactly what was altered and why, so both parties agree to the new terms before work continues. This helps prevent disputes over what was intended, keeps track of how the contract has evolved, and ties adjustments to payment and timing. They do not replace the original contract; they amend it. They are not merely optional; when a change is needed, a written amendment is the standard approach. A new bidding process is not automatically triggered by a change order unless policy or the contract requires it.

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