Certified Professional Public Buyer (CPPB) Practice Test

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What happens when a contractor is ordered to accelerate work and incurs additional costs?

It is considered a constructive change
It is classified as a breach of contract
It results in a penalty
It is deemed a normal cost of business

The correct answer is: It is considered a constructive change

When a contractor is ordered to accelerate work and incurs additional costs, it is considered a constructive change. This is because the contractor was instructed to perform work outside the original contract terms, leading to added expenses that were not anticipated in the initial agreement. A constructive change occurs when a party unilaterally modifies the contract requirements, which can justify a claim for additional compensation due to the unforeseen costs associated with the accelerated work. In construction contracts, such adjustments may happen due to various reasons, including project urgency specified by the owner or unforeseen delays. Being classified as a constructive change allows the contractor to seek an equitable adjustment in their contract price or an extension of time, recognizing that the additional costs were not part of the original deal. Understanding this concept is critical in public purchasing and contracting, as it helps manage expectations and align responsibilities when project requirements evolve.