CSLB Contractor's Law & Business Practice Exam

What action should a contractor take if a client wishes to modify their contract?

1. Ignore the request

2. Charge additional fees immediately

3. Discuss the changes and amend the contract

4. Terminate the contract

The correct answer is: Discuss the changes and amend the contract

A contractor should engage in a conversation with the client about the requested modifications and subsequently amend the contract to reflect those changes. This process is essential because it ensures that both parties have a mutual understanding of the new terms and conditions. When a client requests alterations, it indicates a need for adjustments that could affect the scope of work, timelines, or budget. By discussing the changes, the contractor and the client can clarify details and potentially negotiate implications such as additional costs, extended timeframes, or revised project specifications. Amending the contract provides legal protection for both the contractor and the client, as it ensures that all modifications are documented and agreed upon. This practice helps to maintain a positive working relationship and establishes clear expectations moving forward. Ignoring the request can lead to misunderstanding and dissatisfaction, and charging additional fees without prior discussion may come off as unprofessional and could damage trust. Terminating the contract is a drastic measure that would typically be unnecessary if appropriate communication and amendment processes are in place. Thus, discussing the changes and formally amending the contract is the most reasonable and effective course of action in this scenario.