How do change orders affect the project budget and schedule?

How do change orders affect the project budget and schedule?

• A. They increase costs and can extend the timeline; require written authorization and documentation.
• B. They have no impact on the budget.
• C. They only affect schedule but not cost.
• D. They eliminate the need for approvals.

Answer: (A)

Change orders modify the project scope, and that affects both the budget and the schedule. When a change is approved, it typically adds to costs through extra materials, additional labor, subcontractor work, or overtime, and it can also push the timeline back because procurement, sequencing, and permit or inspection steps may be delayed. In owner-builder contexts, changes are formalized in writing so everyone has a clear record of what was changed, how much it will cost, and how the timeline shifts. This written authorization protects both the owner and the builder from disputes and unapproved drift in scope. The other options miss a key point: changes almost always impact cost, and they require explicit approval; ignoring either aspect leads to unmanaged budget overruns and scheduling problems.

Change orders modify the project scope, and that affects both the budget and the schedule. When a change is approved, it typically adds to costs through extra materials, additional labor, subcontractor work, or overtime, and it can also push the timeline back because procurement, sequencing, and permit or inspection steps may be delayed. In owner-builder contexts, changes are formalized in writing so everyone has a clear record of what was changed, how much it will cost, and how the timeline shifts. This written authorization protects both the owner and the builder from disputes and unapproved drift in scope. The other options miss a key point: changes almost always impact cost, and they require explicit approval; ignoring either aspect leads to unmanaged budget overruns and scheduling problems.