What is a change order?

What is a change order?

• A. A verbal agreement between parties
• B. A written document that modifies the original contract
• C. A summary of project costs
• D. A schedule of payment terms

Answer: (B)

A change order is a written document that modifies the original contract, making this the correct answer. Change orders are essential in construction and project management as they formally document any adjustments to the scope of work, project timelines, costs, or other contractual terms. This ensures that all parties involved are on the same page regarding any changes that have been agreed upon and provides a record that can be referenced later. The importance of having a written document lies in providing clarity and legal protection for both parties, as verbal agreements may lead to misunderstandings or disputes. A change order may include details such as the reasons for the change, the impact on project timelines, and any additional costs incurred. This documentation helps maintain project integrity and serves as a basis for any claims or negotiations that may arise in relation to the original agreement.

A change order is a written document that modifies the original contract, making this the correct answer. Change orders are essential in construction and project management as they formally document any adjustments to the scope of work, project timelines, costs, or other contractual terms. This ensures that all parties involved are on the same page regarding any changes that have been agreed upon and provides a record that can be referenced later.

The importance of having a written document lies in providing clarity and legal protection for both parties, as verbal agreements may lead to misunderstandings or disputes. A change order may include details such as the reasons for the change, the impact on project timelines, and any additional costs incurred. This documentation helps maintain project integrity and serves as a basis for any claims or negotiations that may arise in relation to the original agreement.