When might a change order be necessary in a construction project?

A change order becomes necessary when there are adjustments required to the original contract terms of a construction project. This can arise due to several factors, such as modifications in project scope, unforeseen site conditions, design changes, or adjustments needed to meet regulatory requirements. It serves to formalize these adjustments and ensure that all parties are in agreement regarding the modifications to costs, timeline, and expectations.

While there may be instances such as delays that can lead to discussions about change orders, simply being behind schedule doesn't automatically necessitate a change order, since it may not involve adjustments to the contract terms themselves. Similarly, during the initial planning phase, the project is not yet executed, and no alterations to an existing contract would be relevant. Lastly, changes or finalizations at the conclusion of a project are typically part of the wrap-up process rather than adjustments represented by a change order. Thus, proposing adjustments to the original contract terms is the appropriate context in which a change order is used.