What situation requires a change order?

A change order is required when there is an increase in the project scope beyond what is outlined in the original contract. This situation arises when the project requirements expand, necessitating additional work, materials, or time that were not included in the initial agreement. Change orders are formal documents that modify the contract to reflect these alterations, which can include adjustments in scope, costs, and timelines.

In cases of lower material costs or providing additional training for staff, these scenarios do not inherently require a change order. Cost reductions on materials may lead to savings, but they do not necessitate a change in the contract. Similarly, training is typically considered as part of project management or operational requirements and would not alter the contracted scope of work. Maintaining existing operational budgets also does not trigger a change order since it pertains to financial management rather than alterations to project tasks or deliverables.