What are change orders used for in construction?

Change orders are essential tools in construction project management, as they serve the purpose of formally documenting any changes in scope or design that occur during the construction process. These changes can arise from various factors, including design modifications, client requests, unforeseen site conditions, or adjustments to project specifications. By utilizing change orders, all parties involved—such as contractors, clients, and subcontractors—are kept informed about the modifications, ensuring that there is a clear record of what changes have been approved.

This formal documentation is crucial for maintaining project timelines and budgets, as changes can significantly impact both. It also helps prevent disputes by providing an agreed-upon reference that outlines the nature and reasons for the modifications, along with any adjustments to costs or schedules that may be necessary as a result.

Understanding the role of change orders is vital for anyone involved in construction management, as they help streamline communication and ensure that the project can adapt effectively to any alterations that may arise during its execution.