In what situation would a 'change order' be issued?

A change order is a formal document that modifies the original construction contract by altering aspects such as scope, cost, timeline, or any combination thereof. This is essential in construction projects where unexpected circumstances arise, leading to necessary adjustments.

For instance, if new design requirements emerge or unforeseen site conditions are discovered, a change order is issued to reflect these changes legally and formally. The change order ensures that all parties agree on the updates to the project and outlines how these changes affect the overall contract.

Options that involve terminating a contract, increasing safety measures, or reducing personnel do not accurately capture the primary purpose of a change order, which is to facilitate and document changes within the existing contractual framework without terminating the agreement or focusing on operational aspects unrelated to the contract’s core modifications.