What does a Change Order formalize in construction projects?

A Change Order is a crucial document in the context of construction projects as it formally captures any alterations made to the original construction contract. It serves to amend the project's scope of work, which may include additions or deletions to tasks, adjustments in costs, and changes to the project timeline. By formalizing these changes, it ensures that both the client and contractor are aware of the new terms and conditions resulting from the modifications.

The essence of a Change Order lies in its capability to align the contractual agreement with the reality of project execution. When changes arise, such as unforeseen circumstances that necessitate adjustments to the scope, the corresponding impact on both time and cost must be documented and acknowledged. This is essential for maintaining clarity, accountability, and proper project management, as it mitigates disputes down the line by providing documented evidence of agreed-upon changes.

An accurate understanding of a Change Order emphasizes the importance of ensuring that any modifications to the scope are also reflected in the budget and schedule, which fortifies transparency between all parties involved in the project.