What is the purpose of a change order in construction contracts?

A change order serves a critical function in construction contracts by formally documenting any alterations to the initial agreement. When unexpected circumstances arise during the project, such as changes in the scope of work, adjustments in materials or services, or necessary amendments to pricing, a change order provides a written record of these modifications. This ensures that all parties involved have a clear understanding of how the changes affect the contractual obligations, timelines, and budget. It also helps to prevent disputes by making the alterations mutually agreed upon and documented.

In summary, the primary purpose of a change order is to maintain clarity and communication between all stakeholders, preventing misunderstandings and misalignments as the project progresses. Clearly defining changes helps ensure that both the contractor and the client are on the same page regarding expectations and deliverables throughout the construction process.