Florida General Contractor Practice Exam

In project management, what is typically the primary focus of a change order?

1. Time extension

2. Cost management

3. Quality assurance

4. Resource allocation

The correct answer is: Cost management

In project management, a change order primarily focuses on cost management. A change order is a formal document that modifies the original construction contract to account for changes in the scope of work. These alterations can lead to changes in project costs due to additional work, adjustments to existing tasks, or unforeseen circumstances that arise during the project. When a change occurs, it is essential to evaluate the financial implications, as changes often require additional funding or adjustments to the budget. Therefore, the change order process involves negotiating the impact on costs with contractors and clients to ensure that all parties agree on how any increase or decrease in costs will be handled. This focus on cost management ensures that the project remains financially viable and that resources are allocated appropriately. While time extensions, quality assurance, and resource allocation are important elements of project management, they are typically secondary to the financial implications highlighted by change orders. The need to control costs when changes are made is fundamental to the successful completion of the project without financial overruns.