What are 'change orders' in the context of construction contracts?

Change orders in construction contracts serve as formal modifications to the original agreement between the contractor and the owner. They arise when there is a need to alter the project's scope, which may be due to unforeseen conditions, design changes, or other circumstances that necessitate adjustments to the work being performed.

This process is crucial because it helps manage the project's scope, budget, and timelines, ensuring that all parties agree to the changes documented in writing. By providing clarity on how the modifications affect costs and schedules, change orders protect the interests of everyone involved. This ensures that the contractor can adequately account for any extra work or resources required due to the change and that the owner is aware of any implications these changes may have on the overall project.

The other options represent different aspects of construction contracts or project management, such as payment assurances, project completion documentation, or material procurement, but do not encapsulate the primary purpose of a change order, which specifically relates to altering the agreed-upon scope of work.