What is a “change order”?

What is a “change order”?

• A. A formal amendment to the original contract that alters the scope, cost, or timeline
• B. A document that confirms the project is completed
• C. A request for additional funding from the client
• D. A notification of milestone completion

Answer: (A)

A “change order” is recognized as a formal amendment to the original contract that specifically alters aspects such as the scope of work, the cost associated with the project, or the timeline for completion. This process is essential in construction management because it allows for adjustments when unforeseen circumstances arise that necessitate changes to the initial plans. For example, if additional work is required or if there are delays that affect the schedule, a change order documents these changes formally, ensuring that all parties agree to the new terms. In contrast, confirming project completion relates to finalization and does not involve changes to the contract terms. Similarly, requesting additional funding from the client, while potentially related to changes in project scope or cost, is not what defines a change order itself. Lastly, notifying milestone completion is a part of project tracking and management but does not equate to amending the original contract. Thus, understanding the nature of change orders is crucial for effective contract management and facilitating smooth communication between all stakeholders in a construction project.

A “change order” is recognized as a formal amendment to the original contract that specifically alters aspects such as the scope of work, the cost associated with the project, or the timeline for completion. This process is essential in construction management because it allows for adjustments when unforeseen circumstances arise that necessitate changes to the initial plans. For example, if additional work is required or if there are delays that affect the schedule, a change order documents these changes formally, ensuring that all parties agree to the new terms.

In contrast, confirming project completion relates to finalization and does not involve changes to the contract terms. Similarly, requesting additional funding from the client, while potentially related to changes in project scope or cost, is not what defines a change order itself. Lastly, notifying milestone completion is a part of project tracking and management but does not equate to amending the original contract. Thus, understanding the nature of change orders is crucial for effective contract management and facilitating smooth communication between all stakeholders in a construction project.