What is a common contractual tool utilized to manage project changes?

A change order is a crucial contractual tool used in construction and project management to formalize modifications to the original contract. When changes arise during a project—whether due to unforeseen conditions, design alterations, or scope adjustments—change orders serve as the official documentation that outlines the specific changes, the reasons for those changes, and any impact on the project's cost or timeline.

Utilizing change orders helps ensure clarity and mutual agreement between the parties involved about what changes are being made and how they will affect the overall project. This practice not only maintains a transparent communication channel but also protects all parties legally, since change orders are typically signed by all relevant stakeholders, which helps prevent disputes regarding what was agreed upon.

While contracts, agreements, and memo notes might play a role in the overall management of a project, they do not specifically address the structured process required for handling changes. Contracts lay the foundation of the working relationship and obligations, agreements can encompass a wider scope of collaboration, and memo notes might serve as informal communication. However, change orders are uniquely designed for managing modifications, making them the most appropriate tool for this purpose.