Certified Professional Public Buyer (CPPB) Practice Test

What result occurs when a contractor accelerates work as directed but incurs additional costs?

1. Deemed a contractual issue

2. Constructive change acknowledged

3. Reduction in overall budget

4. Contribution to project success

The correct answer is: Constructive change acknowledged

When a contractor is directed to accelerate work, it means they are being asked to complete tasks more quickly than originally planned. This acceleration can lead to additional costs due to the need for extra resources, overtime, or other measures to hasten the project's pace. In such scenarios, if the contractor incurs these additional costs as a direct result of the acceleration, it is considered a "constructive change." A constructive change is recognized in contract law when a directive from the client alters the original terms of the contract, leading the contractor to incur unforeseen expenses. In these instances, the contractor can seek compensation for those additional costs because the changes were necessitated by the client’s directive. Understanding this concept is crucial in public procurement and project management, as it allows for the proper assessment of claims and change orders in contractual agreements. It highlights the importance of clear communication and documentation in managing changes to project scope and scheduling. The result of the contractor's acceleration, which may include added costs that were not anticipated in the baseline budget, falls under this umbrella of constructive change acknowledgment.