How do change orders impact project cost and schedule?

• A. They modify scope, which can alter cost estimates and timelines, necessitating owner approval and revised baselines
• B. They adjust payment terms within the contract
• C. They have no impact on schedule
• D. They are only administrative and have no real effect

Answer: (B)

Change orders primarily change the scope of work, and that shift drives changes to both cost estimates and the project schedule. When the scope is altered—different quantities, different materials, or new tasks—the amount of work, materials, and labor required changes, which in turn changes the estimated cost and the time needed to complete the project. Because these impacts alter the project’s baseline, they require formal owner approval and an updated schedule and budget (revised baselines). Payment timing can be affected as a result of the new contract sum and milestones, but the essential effect of a change order is the change in scope that cascades into cost and schedule adjustments. The other options misstate the issue: change orders are not just about payment terms, and they do impact the schedule and are more than administrative tasks.