When might a contractor need to submit a "change proposal"?

A change proposal is a formal request submitted by the contractor to seek approval for an adjustment in the contract terms, typically due to additional costs incurred from changes in the project scope. This situation arises when unforeseen circumstances, design changes, or other factors necessitate alterations in the original contract, leading to extra expenses that the contractor needs to cover.

The purpose of the change proposal is to document and communicate these additional costs to the owner or project manager, ensuring transparency and seeking resolution on how these costs will be compensated. This process is essential for maintaining a clear financial framework throughout the project and protecting the contractor’s interests while remaining compliant with contractual obligations.

In contrast, simply wanting to increase profit margins without a basis in contract changes does not justify a change proposal. Similarly, being ahead of schedule or having no significant changes to the project scope would not necessitate a change proposal, as these scenarios do not involve additional costs or alterations to the work as defined by the contract. Hence, the focus of a change proposal is solely on securing payment for extra costs incurred due to actual changes in the project, making this the correct answer.