What is the primary purpose of change orders in construction contracts?

The primary purpose of change orders in construction contracts is to document changes in project scope. Change orders are essential tools that help manage adjustments to the original contract terms, whether due to alterations in design, unforeseen issues that arise during construction, or any other factors that necessitate a change in the originally agreed-upon work.

When a change occurs, a change order serves to formally outline what the modifications are, specify how these changes will impact cost and time schedules, and ensure that everyone involved in the project is on the same page regarding the new expectations. This documentation is crucial not only for maintaining clarity and accountability among contractors, subcontractors, and clients but also for preventing disputes regarding the scope of work and project costs. Thus, change orders play a vital role in effective project management and in ensuring that all parties are updated regarding any significant shifts in the project’s direction.