Why is it important for a contractor to keep a record of all change orders?

Keeping a record of all change orders is crucial for contractors primarily because state law often mandates documentation. Change orders can significantly affect project scope, costs, and timelines. By maintaining accurate records, contractors ensure compliance with legal requirements, which protects their interests and helps prevent disputes with clients. These records serve as an official account of any modifications made to the original contract, which is essential for validating additional work or adjusting payments.

While the other options may seem relevant, they do not capture the primary importance of documenting change orders within the legal and professional framework. Impressing clients may be a secondary benefit, but it is not the foundational reason for keeping these records. The contractor's personal benefit is indeed a factor, as organized documentation aids in project management; however, this personal advantage isn't the critical reason that legal compliance stands out. Lastly, the misconception that documentation of change orders is only necessary for large projects overlooks the fact that changes can occur in projects of any size, making consistent record-keeping essential in all cases.