What is a change order?

A change order is a document that formally alters the original terms of a construction contract. It is an essential tool in construction project management that allows for modifications to the scope of work, schedule, or price agreed upon in the contract.

When circumstances arise that necessitate changes—such as unforeseen issues, design adjustments, or changes requested by the client—a change order provides a clear and legally binding way to document those changes. This helps ensure that all parties have a mutual understanding of the new terms, which protects both the contractor and the client from potential disputes down the line.

While the other options may relate to aspects of contract management or project execution, they do not accurately encompass the comprehensive purpose of a change order. For instance, while a request for additional funds may arise as a result of changes in work, it does not encompass the full breadth of what a change order entails, which also includes alterations to schedule and scope. Similarly, notifications of delays or summaries of project completion do not address the formal modification of contract terms, which is the primary function of a change order.