What are 'change orders' in a construction contract?

• A. Requests for additional funding
• B. Modifications made to the original construction contract that adjust scope, cost, or time
• C. Notifications of project milestones
• D. Requests for materials change

Answer: (B)

Change orders in a construction contract are formal modifications made to the original agreement between the parties involved, which can adjust various aspects of the project, including its scope, cost, and schedule. These modifications are necessary when unforeseen circumstances arise or when changes are required due to client requests, design modifications, or other adjustments as the project progresses.

When a change order is issued, it typically outlines the changes to be made, the reasoning behind the changes, and how these changes will affect the overall contract terms. This may include adjustments to the total contract price or extensions to the project timeline.

The other options, while relating to construction projects, do not encapsulate the full scope of what a change order entails. Requests for additional funding refer specifically to financial aspects rather than to changes in scope or time. Notifications of project milestones focus on tracking progress but do not involve modifying the contract itself. Requests for materials change pertain to specific alterations in the types of materials used rather than broader changes to the contract terms. Therefore, the definition of change orders encompasses a wider set of modifications, emphasizing their role in managing the project effectively.