Why is a Change Order significant in a construction project?

A Change Order is significant in a construction project because it formally modifies the original contract terms, which can include changes to the project scope, costs, or timelines. When there are unforeseen circumstances, design changes, or client requests that alter the intended project delivery, a Change Order serves as a written agreement between the contractor and client to acknowledge these adjustments.

By documenting these changes, the Change Order helps to ensure clarity and mutual understanding between parties involved. It allows for the integration of any necessary adjustments into the overall project plan and helps maintain compliance with legal and regulatory requirements. Thus, it becomes a critical part of project management by safeguarding the interests of both the contractor and the client, providing a clear path forward amidst changing project dynamics.