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

• A. To modify scope, price, or schedule with mutual approval
• B. To document a safety violation
• C. To increase insurance requirements
• D. To authorize overtime for workers

Answer: (A)

A change order is the formal tool used to adjust a construction contract when the work, its cost, or the timeline changes. It requires mutual approval from both the owner and the contractor before the change is made and spells out exactly what is being added, removed, or altered, how much more or less it will cost, and any updated completion date. This creates a clear, enforceable record that keeps the project on track and helps prevent disputes by tying the change to specific details and agreed responsibilities. It’s not meant to document safety violations, adjust insurance requirements, or authorize overtime—those are handled through separate processes or documents.