A cost that is very difficult, if not impossible, to capture accurately through a change order is known as what type of cost?

A cost that is very difficult, if not impossible, to capture accurately through a change order is known as what type of cost?

• A. Impact
• B. Overhead
• C. Direct
• D. Secondary

Answer: (C)

The key idea is how change orders handle cost attribution. Change orders are intended to document the direct, billable costs that come with a specific change in scope—things you can trace to a particular item of work, like additional labor hours, extra materials, or a changed sequence that directly affects quantities and prices. Costs that are very hard to capture through a change order are the overhead or indirect costs. These are the general conditions and project support expenses that aren’t tied to a single, discrete change—things like on-site supervision, temporary facilities, site safety programs, utilities, project management time, and other general administrative costs. Because these costs are incurred regardless of any one change and cannot be neatly charged to a single change order, they’re not accurately captured by a change-order document. Instead, they’re typically absorbed into the overall project cost or allocated across the project. The other terms don’t fit as well. Direct costs are precisely what change orders are designed to capture, since they can be traced to the specific change item. The term “impact” isn’t a standard cost category in this context, and “secondary” isn’t a typical designation for this issue.

The key idea is how change orders handle cost attribution. Change orders are intended to document the direct, billable costs that come with a specific change in scope—things you can trace to a particular item of work, like additional labor hours, extra materials, or a changed sequence that directly affects quantities and prices.

Costs that are very hard to capture through a change order are the overhead or indirect costs. These are the general conditions and project support expenses that aren’t tied to a single, discrete change—things like on-site supervision, temporary facilities, site safety programs, utilities, project management time, and other general administrative costs. Because these costs are incurred regardless of any one change and cannot be neatly charged to a single change order, they’re not accurately captured by a change-order document. Instead, they’re typically absorbed into the overall project cost or allocated across the project.

The other terms don’t fit as well. Direct costs are precisely what change orders are designed to capture, since they can be traced to the specific change item. The term “impact” isn’t a standard cost category in this context, and “secondary” isn’t a typical designation for this issue.