What must a contractor explain regarding the impact of a proposed Change Order?

The correct answer focuses on the necessity for a contractor to explain how a proposed Change Order will affect the overall Project Schedule and cost. This is a critical aspect of project management in construction contracts, as any change in the work scope can lead to delays or increased expenses. Understanding the influence on the timeline is essential for stakeholders to adjust planning and resources accordingly, ensuring that project deadlines are met. Additionally, the cost implications are significant for budgeting and financial forecasting, which are crucial for the project's success and the contractor's profitability.

While factors like labor availability, vendor relationships, and subcontractor performance can be impacted by a Change Order, they are secondary to the more direct impacts on the schedule and cost. These elements can vary widely depending on the specific circumstances of the project, and while they are important, the overarching effects on time and money make them less critical to address upfront in a Change Order discussion. Ensuring clarity on how the Change Order alters schedule and costs helps in making informed decisions and maintaining transparency among all involved parties.