In processing a payment requisition, the contractor includes an unapproved change order item. What should the CM do?

In processing a payment requisition, the contractor includes an unapproved change order item. What should the CM do?

• A. Deduct the value of unapproved change order from the requisition
• B. Approve the change order immediately
• C. Pay the full amount without adjustment
• D. Refer to legal for dispute resolution

Answer: (A)

When processing a payment requisition, only items that have been properly approved should be paid for. An unapproved change order item is not yet authorized, so the correct action is to deduct that amount from the requisition and proceed with payment for the approved items. This follows the contract’s change-management controls, preventing payment for work or costs that haven’t been reviewed and agreed upon. The contractor should be informed that the unapproved item isn’t included until the change order is approved and priced, at which point a revised requisition can be issued. Paying the full amount or approving the change order immediately would bypass the necessary approval process and could lead to cost overruns.

When processing a payment requisition, only items that have been properly approved should be paid for. An unapproved change order item is not yet authorized, so the correct action is to deduct that amount from the requisition and proceed with payment for the approved items. This follows the contract’s change-management controls, preventing payment for work or costs that haven’t been reviewed and agreed upon. The contractor should be informed that the unapproved item isn’t included until the change order is approved and priced, at which point a revised requisition can be issued. Paying the full amount or approving the change order immediately would bypass the necessary approval process and could lead to cost overruns.