What is a "change order" in construction contracting?

A "change order" in construction contracting is defined as a formal request to modify the original contract, which can impact both the cost and the timeline of the project. This is a crucial aspect of construction management, as projects often encounter unforeseen circumstances or changes in scope that necessitate alterations to the agreed-upon terms.

When a change order is issued, it typically outlines the specifics of the modification, including any adjustments needed for materials, labor, and project timelines. This formal process ensures that all parties are aware of the changes and agree to them, providing a clear record that can help in managing the project's budget and schedule effectively.

Establishing a change order process allows for the adaptability required in construction projects while maintaining legal and contractual integrity. The presence of such a mechanism is vital in avoiding disputes and ensuring that all stakeholders are on the same page regarding adjustments to the contract.