What does a "Change Order" signify in construction management?

A "Change Order" is a crucial component in construction management as it signifies a modification to the original construction contract. This change can involve adjustments to the scope of work, changes in the materials used, alterations in project timelines, or alterations due to unforeseen circumstances. When a change order is issued, it formally documents the amendments agreed upon by both the contractor and the client, which helps to ensure clarity, maintains an accurate record of changes, and sets a revised basis for project costs and timelines.

In construction projects, the need for change orders often arises due to various factors, such as design modifications, unforeseen site conditions, or regulatory requirements that may have emerged after the initial contract was signed. By formally categorizing these adjustments as change orders, it provides a structured approach to managing project progression and helps to safeguard against disputes arising from informal changes. This formal process is vital for maintaining project integrity and ensuring all parties are aligned on the revised terms of the contract.