What is a Change Order?

A Change Order is best defined as a written agreement to alter a contract. This typically occurs during the construction process when modifications are necessary due to various factors such as design changes, project scope adjustments, or unforeseen circumstances. Change Orders serve to formally document these alterations, ensuring that all parties involved are aware of the modifications to the original agreement. This documentation is critical for maintaining clarity and preventing disputes, as it outlines the specifics of what is being changed, including any adjustments to costs and timelines.

In the context of construction projects, a Change Order acts as a vital tool for managing changes while keeping the project on track. By specifying the exact nature of the changes, it allows project managers, contractors, and clients to have a clear understanding of the implications these changes may have on both the project's budget and schedule.