Florida General Contractor Practice Exam

When a change order is issued that changes the quantity at a unit price, what price adjustment is made according to A201?

1. No adjustment made

2. Adjustment based on original contract

3. Adjustment based on current market value

4. Adjustment based on unit price submitted

The correct answer is: Adjustment based on unit price submitted

When a change order is issued that affects the quantity at a predetermined unit price, the adjustment is made based on the unit price submitted in the original contract. This practice is in line with the A201 General Conditions of the Contract for Construction, which stipulates that when there is a change in the work that results in an increase or decrease in the quantity of work performed, the adjustment to the contract price is made using the unit price that was established in the original contract. This approach ensures that the contractor is compensated fairly for the exact work performed as specified in the contract, while also providing the owner with a means for keeping costs predictable and manageable. The use of the unit price allows for easy calculation of the changes without needing extensive renegotiation of pricing, which can be time-consuming and could create disputes. Adjustments based on the original contract value or current market value don't specifically apply in this context, as the question focuses on a change order related to unit pricing. Therefore, the basis of the adjustment is directly tied to the submitted unit price, reflecting the agreed-upon cost for that specific work defined in the contract.