What does the term "change order" mean in construction?

The term "change order" in construction refers to a document that outlines changes to the original contract. This document is essential when modifications are required after the contract has been signed, whether due to unforeseen circumstances, client requests, or design adjustments. Change orders help provide a clear record of these changes, including alterations in scope, specifications, deadlines, and costs, ensuring that both the builder and the client are aligned and that all modifications are formally acknowledged.

This clarity is crucial in construction projects, where details are vital to maintaining schedules and budgets. Change orders also serve to minimize disputes by creating a mutual understanding of what adjustments have been agreed upon. In contrast, the other options do not accurately capture the essence of a change order within the construction industry.