What are "Change Orders" in contract management?

"Change Orders" in contract management refer to formal modifications made to the terms or scope of an existing contract. This can include alterations in project specifications, timelines, costs, or other aspects stipulated in the original agreement. The need for change orders often arises due to unforeseen circumstances or changes in project requirements, which may necessitate adjustments to the contract to reflect the current project situation accurately.

Using a formal change order process is important as it ensures that all changes are documented, agreed upon by both parties, and that there is a mutual understanding of the implications of these changes on the project. This helps to maintain clarity and accountability throughout the project lifespan, ultimately leading to more successful outcomes.

Other options focus on different aspects of contract management, but they do not define change orders accurately. Adjustments to project budgets based on vendor performance relate more to financial tracking rather than formal contract changes. Customer feedback forms pertain to contract evaluation but are not a modification of the terms themselves. Requests for proposals target the procurement of new vendors and do not involve adjustments to existing contracts. Therefore, the definition of change orders as formal modifications aligns directly with best practices in contract management.