What is the primary purpose of a change order in a contract?

The primary purpose of a change order in a contract is to outline changes to the original scope of work. Change orders formally modify the initial terms agreed upon by the parties involved, allowing for adjustments that reflect new requirements, unforeseen circumstances, or alterations in the project direction. This is crucial in maintaining clarity and mutual understanding of the expectations between the contracting parties.

When a situation arises that necessitates a change, such as the need for additional work, changes in design, or delays due to external factors, the change order serves as an official record and agreement of these modifications. It helps to ensure that all parties have a clear understanding of what has been altered, thereby minimizing disputes and ensuring proper alignment on project objectives and outcomes. This formal documentation assists in tracking progress and maintaining an accurate historical record of how and why the project's parameters evolved over time.