In contract management, what typically constitutes a "change order"?

A change order in contract management is fundamentally a modification to the terms of the original contract. This amendment is often necessary due to various factors that can arise during the execution of a contract, such as scope changes, unforeseen conditions, or adjustments in project requirements. The change order formalizes these modifications, ensuring that both parties agree to the new terms that reflect changes in cost, timelines, or project specifications.

It is crucial for maintaining clarity and mutual understanding between the parties involved, as it documents the agreed-upon changes to the existing contract structure. The change order process typically involves proper documentation and approval from all parties, ensuring that any alterations are legally recognized and enforceable.

In contrast, the other options represent different concepts in contract management. A request for increased funding pertains specifically to financial aspects rather than modifications of terms. Termination indicates a complete end to the contract rather than changes made to its provisions. Lastly, a verbal amendment lacks formal documentation and legal standing, making it an unreliable method for altering contract terms.