What is a change order in construction?

A change order in construction is a formal document that modifies the original contract between the parties involved, typically the contractor and the client. It occurs when there are adjustments needed in the project's scope, specifications, price, or timeline due to unforeseen circumstances, design changes, or client requests.

This document is essential because it serves to ensure that all modifications are documented and agreed upon by both parties, thereby preventing misunderstandings and disputes later on in the project. Change orders also often include adjustments to the project timeline and budget, which reflects a clear understanding of how these changes will impact the overall delivery of the project.

Understanding the concept of a change order is critical in the construction industry as it helps maintain clarity and manage expectations throughout the project's lifecycle.