What is a change order?

A change order is defined as a written directive that modifies critical components of a project, including its price, scope, or schedule. This formal document serves as an official agreement between the parties involved, detailing the specific adjustments to the original contract. Change orders are necessary for managing any alterations that arise after the initial agreement, ensuring that all stakeholders have a clear understanding of how these changes will impact project execution. Thus, understanding the attributes of a change order is essential for effective project management and adherence to contractual obligations.

The focus on price, scope, and schedule is particularly important, as these elements are the pillars of project planning and delivery. Changes in any of these areas can significantly affect project outcomes, budgets, and timelines, necessitating a formalized process to address them.