What is a Change Order in construction?

A Change Order in construction serves as a formal document that modifies the original contract terms, scope, or cost of a project. Typically initiated when unforeseen circumstances arise or when changes in project requirements occur, the Change Order allows for adjustments to the contract to reflect new agreements between the parties involved, ensuring that the project can proceed smoothly despite any necessary alterations.

This process is vital as it helps maintain clear communication and agreement on changes, effectively managing the overall project timeline and budget. By documenting these alterations, all parties can ensure that they are on the same page, reducing the risk of disputes over expectations and responsibilities as the project progresses.

The other options do not accurately define a Change Order. For instance, simply canceling the original contract would not provide the necessary adjustments for ongoing projects. Similarly, a performance evaluation or a payment schedule relates to different aspects of project management and not the modifications to contract terms, scope, or cost.