What purpose do change orders serve in construction?

Change orders serve the purpose of modifying the original contract terms in a construction project. They are formal documents that outline changes to the scope of work, contractual obligations, or any other terms of the original agreement. This mechanism is essential when unforeseen circumstances arise, such as design changes, site conditions, or client requests, which require adjustments to the initially agreed-upon plans or specifications.

By utilizing change orders, both the owner and the contractor can maintain a clear record of modifications. It provides a structured approach to address alterations, ensuring that all parties agree on the terms and associated implications, such as costs and timelines. This formalization is crucial in preventing misunderstandings and disputes over the scope and financial aspects of the project.

Other options suggest functions that change orders do not inherently provide. For instance, while change orders could potentially lead to adjustments in costs or deadlines, their primary role is to modify contractual terms rather than automatically lead to cost increases or time extensions. Thus, the correct answer highlights the fundamental role of change orders in maintaining clarity and agreement within the evolving context of a construction project.