What is a "change order" in construction management?

A "change order" in construction management is a document that modifies the original construction contract agreement. It formalizes any changes that need to be made to the scope of work, contract price, or project schedule after the original contract has been established. Change orders are critical, as they provide a clear record of adjustments agreed upon by both the contractor and the owner, including reasons for the changes and any implications these changes may have on project timelines or costs.

This process is necessary due to the dynamic nature of construction projects, where unforeseen conditions, design modifications, or regulatory changes may necessitate alterations. By following the proper procedure for change orders, both parties can maintain clarity and address any issues that arise while protecting their interests.

The other options, while relevant to construction management, do not accurately describe a change order. Project wrap-up documents serve a different function, focusing on the completion of the project rather than modifications. Safety compliance reports address adherence to safety regulations, which is separate from contractual changes. Requests for additional funding may relate to modifications but do not constitute a change order since they do not explicitly capture the alterations to the contract's terms.