What is a change order in construction?

A change order in construction is defined as a formal document that modifies the original construction contract terms, affecting aspects such as scope, cost, or schedule. This is crucial in the construction industry as projects frequently encounter alterations due to various factors like design changes, unforeseen conditions, or client requests.

When a change order is issued, it provides clarity and official acknowledgment of the new terms agreed upon by the parties involved, ensuring that all stakeholders are on the same page regarding the updated project parameters. This helps in maintaining organization and accountability, ultimately preventing disputes and miscommunication.

The other options refer to different aspects of project management and reporting but do not accurately capture the role and significance of a change order within the context of construction contracts.