What is the purpose of a Final Change Order?

• A. Approve additional time only
• B. Reconcile final payment and final contract price
• C. Terminate the contract
• D. Extend warranty

Answer: (B)

The main idea here is that the Final Change Order is the document that closes the project financially. As work wraps up, every remaining or recently approved change, credit, substitution, or unpriced item is gathered and priced. The Final Change Order records these adjustments and sets the agreed final contract sum, then authorizes the final payment due to the contractor (including any retained amount and releases of lien waivers). In short, it reconciles the final payment with the final contract price so both parties know the exact amount owed and paid, bringing the financial side of the contract to a true close. It isn’t used to extend time, terminate the contract, or extend warranties; those are handled through other processes or documents.