What does a change order accomplish?

A change order is a formal document used in construction projects that modifies the original construction contract. It typically reflects changes in the scope of work, adjustments to the project timeline, new costs, or other pertinent amendments necessary due to unforeseen circumstances or client requests. The purpose of a change order is to legally document these changes and ensure that all parties involved agree to the new terms.

By modifying the original contract, the change order helps maintain clear communication and sets the basis for how these adjustments will impact the project moving forward. This is crucial because it helps to mitigate disputes, ensures compliance with legal and contractual obligations, and allows for accurate tracking of project scope and costs.

In contrast, while change orders might sometimes lead to extensions in project duration or impact project finances, that's not their primary function; they specifically serve to amend the original contract. Change orders do not inherently create new stakeholders either; they involve adjustments among the existing parties in the project.