What are "change orders" typically used for in construction?

Change orders are essential tools in the construction industry, primarily used to authorize adjustments to the contract price or project timeline. When unforeseen circumstances arise, such as design changes, scope alterations, or unexpected site conditions, the original contract may no longer adequately reflect the project's requirements. In such cases, a change order serves as a formal amendment to the contract, detailing the necessary changes, the rationale behind them, and the adjustments to the costs or schedule involved.

Through change orders, all parties can maintain clear communication regarding modifications, ensuring that everyone is aware of the updated expectations and obligations. This process helps avoid disputes by providing a documented agreement to the changes made during the project. Therefore, change orders play a crucial role in managing the complexities of construction projects, enabling contractors and clients to adapt while ensuring compliance with contractual obligations.