In the context of construction, what does the term "change order" refer to?

In construction, a "change order" specifically refers to a formal modification to the original construction contract. This document is typically used to record changes to the scope of work, modifications in project timelines, or adjustments to contract pricing that arise after the initial agreement has been executed. Change orders are essential in ensuring that both the contractor and the client have a clear understanding of the alterations being made, formalizing any adjustments in a legally binding way.

Through a change order, contractors can document changes that may arise due to unforeseen circumstances, such as new regulations, design changes requested by the homeowner, or other factors affecting project execution. As a result, it provides a mechanism for managing and agreeing upon these changes, which helps avoid conflicts and misunderstandings later in the project. This formal approach is critical in maintaining clarity and accountability in construction projects.