Why is it essential for a contractor to keep a copy of a change order?

Keeping a copy of a change order is essential for a contractor primarily because it serves as a documented agreement between the contractor and the client regarding any modifications to the original contract. This documentation is vital for several reasons. First, it provides a clear record of the changes that were approved, including scope, costs, and timelines. This helps to avoid misunderstandings or disputes that may arise later regarding what work was agreed upon or the associated costs. If a problem occurs after the changes have been implemented, having the change order allows both the contractor and the client to refer back to the terms as originally agreed, facilitating a smoother resolution. Furthermore, it protects both parties legally by ensuring that there is a tangible reference point that can validate claims or disputes.

In terms of the other options, while negotiating better prices, tracking customer requests, and simplifying billing processes are all important aspects of project management and client relations, they are not the primary reasons for retaining a change order. The focus should be on the importance of clear documentation and its role in risk management and clarity in the construction process.