What is a change order in construction?

A change order in construction is a formal document that outlines modifications to the original construction contract. It serves a critical role in managing changes that may arise during the project, addressing aspects such as the scope of work, adjustments to the timeline, and any changes in cost associated with the alterations. This documentation is essential to ensure that all parties involved are aware of the revisions and agree to them formally, thereby preventing misunderstandings and disputes further along in the project.

With a change order, the contractor, client, and any other stakeholders can clearly outline what adjustments are being made, why they are necessary, and how they will impact the overall project. This legal acknowledgment protects both the contractor and the homeowner, ensuring that all changes are accounted for in writing, establishing formal agreements that can be referenced later if needed.

Understanding change orders is crucial for successful project management in construction; it ensures compliance with contract stipulations and supports clear communication among all parties involved.