What is the purpose of a change order?

The purpose of a change order is to formally modify the original construction contract. Change orders are essential in construction projects as they provide a structured method for documenting changes in the scope of work or adjustments to the contract terms. These modifications may arise from various factors, such as unforeseen site conditions, design changes initiated by the owner, or regulatory requirements that necessitate alterations in the project.

By formally adjusting the contract through a change order, all parties involved acknowledge the new terms, whether they pertain to cost, timelines, or specific tasks within the project. This process helps maintain clear communication and ensures that all stakeholders understand and agree to the changes, thereby reducing potential disputes.

Understanding the nature of change orders is crucial for successful project management in construction, as they help manage expectations and keep the project on track in light of adjustments that may be required.