What is a Change Order and when is it typically issued?

What is a Change Order and when is it typically issued?

• A. A document modifying payment terms.
• B. A document that changes scope, time, or cost approved by owner, architect, and contractor; issued when field conditions or design changes occur.
• C. A permit from building department.
• D. A quality control report.

Answer: (B)

A Change Order is a formal document that records changes to the contract’s scope, schedule (time), or cost and requires the approval of the owner, architect, and contractor. It is issued when field conditions on the job site or design changes necessitate adjustments to what work is being done, when it’s done, or how much it costs. This ensures everyone agrees to the revised terms and that the contract reflects the new scope, timing, and price. Other documents serve different purposes: a building department permit regulates regulatory compliance to allow work to proceed, and a quality control report documents how the work meets quality standards. A document that only touches payment terms doesn’t inherently modify the actual scope, timing, or cost unless it accompanies a change to those elements, which is then formalized through a Change Order.

A Change Order is a formal document that records changes to the contract’s scope, schedule (time), or cost and requires the approval of the owner, architect, and contractor. It is issued when field conditions on the job site or design changes necessitate adjustments to what work is being done, when it’s done, or how much it costs. This ensures everyone agrees to the revised terms and that the contract reflects the new scope, timing, and price.

Other documents serve different purposes: a building department permit regulates regulatory compliance to allow work to proceed, and a quality control report documents how the work meets quality standards. A document that only touches payment terms doesn’t inherently modify the actual scope, timing, or cost unless it accompanies a change to those elements, which is then formalized through a Change Order.