What defines a change order in construction contracts?

A change order in construction contracts is defined as a change to a contract after it has been signed. This typically occurs when the scope of work needs to be altered due to various factors, such as design changes, unforeseen site conditions, or adjustments in materials and methods. Change orders are formal documents that provide a written record of the modifications, ensuring that both the contractor and client are clear on what changes have been agreed upon and how those changes will affect the overall contract. This process is essential for managing expectations and maintaining transparency throughout the project.

While modifications prior to signing might involve initial negotiations or adjustments to the terms, they do not fall under the definition of change orders since the contract is not yet finalized. Changes due to unexpected issues are often the impetus for issuing a change order, but the act of issuing the change order itself occurs after the contract is in place. Similarly, revisions based on cost overruns might be a result of changes being made, but they are not the defining feature of a change order, which is more about adjusting the scope of work rather than solely addressing financial implications.