Glossary

Adjusted contract value

Adjusted contract value is the original contract value plus approved changes. It is the current dollar amount the contractor is authorized to bill against, not the first bid number.

Worked example

On a hypothetical Midtown Clinic job, the signed contract is $12,000,000. Two owner change orders add $480,000. Adjusted contract value becomes $12,480,000.

Related terms

• Original contract value
• Change order
• Estimate at completion

Keep reading: Why 77% of construction projects exceed budget.