Define the term 'change order'.

The term 'change order' refers to a document that outlines a change to the original contract scope, schedule, or cost of a project. This definition captures the essential purpose of a change order, which is to formalize modifications that arise during the lifecycle of a project. Change orders are necessary because they ensure that changes are documented, agreed upon by all relevant stakeholders, and appropriately managed within the project's constraints. This helps maintain clarity and transparency regarding any adjustments that may affect the project's deliverables, timelines, or budget.

Understanding the significance of a change order is crucial in project management, as it reflects the dynamic nature of projects where changes may be inevitable due to various factors such as stakeholder requests, unforeseen circumstances, or the need for improvements. By utilizing change orders, project managers can effectively manage risks associated with alterations and ensure that the project stays aligned with its overall goals and objectives. This structured approach is vital for successful project management, allowing teams to adapt while maintaining control over outcomes.