What is a "change order" in construction contracts?

What is a "change order" in construction contracts?

• A. A verbal instruction to adjust scope
• B. A directive to halt work
• C. A change in the project color
• D. A written instruction to adjust the scope, price, or schedule, agreed by owner and contractor

Answer: (D)

A change order is a formal written modification to a construction contract that changes the scope, price, or schedule, and it must be agreed to by both the owner and the contractor. It records precisely what work is added, removed, or altered, the cost impact, and any change to the completion date, and it becomes part of the contract documents. Change orders are used when site conditions or client requests require adjustments beyond what was originally agreed, ensuring there is a clear, traceable record of approved changes. Verbal instructions to modify work aren’t considered change orders, and a stop-work directive is a separate action, not a contract change. If a change affects scope, cost, or timing, it should be captured in a written change order.

A change order is a formal written modification to a construction contract that changes the scope, price, or schedule, and it must be agreed to by both the owner and the contractor. It records precisely what work is added, removed, or altered, the cost impact, and any change to the completion date, and it becomes part of the contract documents. Change orders are used when site conditions or client requests require adjustments beyond what was originally agreed, ensuring there is a clear, traceable record of approved changes. Verbal instructions to modify work aren’t considered change orders, and a stop-work directive is a separate action, not a contract change. If a change affects scope, cost, or timing, it should be captured in a written change order.