What does the term "change order" typically require?

A "change order" is a formal document used in construction that modifies the original construction contract. It typically involves changes to the scope of work, adjustments in contract price, or alterations to the schedule. The requirement for approval from both the contractor and the project owner is essential because both parties need to agree on the modifications being made. This mutual consent ensures clarity, helps maintain good relationships, and avoids disputes later in the project.

When a change order is initiated, it usually arises from unforeseen circumstances, design changes, or client requests. Therefore, both the contractor, who is responsible for the execution and may need to assess the practical implications of the changes, and the project owner, who has final authority over the project direction and budget, must assess the request together. Their agreement signifies that both parties understand and accept the implications these changes have on the overall project, including potential cost impacts and timelines.

The other options either address unilaterally approving changes or include parties that may not be directly involved in the day-to-day management and contractual agreement aspects, thereby missing the essential collaborative approval process that defines a change order.