What is the purpose of a Change Order?

The purpose of a Change Order is to provide a basis for changes in contract terms, which is crucial in construction projects where flexibility may be required due to unforeseen circumstances, design adjustments, or shifts in project scope. Change Orders formalize alterations to the original agreement by documenting any modifications that impact the contract, including potential adjustments to costs and timelines. This creates a clear record that both the contractor and the client can reference, ensuring mutual understanding and agreement on the changes made.

In contrast, the other options do not fully encompass the broader role of a Change Order. For instance, documenting a change in contract time only would limit the scope of the Change Order to time-related adjustments, neglecting the essential aspects of cost and work modifications. Similarly, referencing minor changes not involving costs overlooks instances where even minor adjustments can lead to significant project implications. Directing a change in work authorized specifically by the Architect/Engineer suggests a narrower focus that misses the overall purpose of contractual adjustments, which encompass a wider range of terms including both time and financial aspects.