Which of the following best defines the term "change order"?

The term "change order" is best defined as a modification of existing orders. In the context of interior design and construction, a change order is a formal document that outlines alterations to the original scope of work as set forth in a contract. This could involve changes in materials, specifications, timelines, or costs due to unforeseen circumstances or additional client requests.

The importance of a change order lies in its ability to manage alterations in a clear and documented manner, ensuring both parties understand and agree on the new terms. It protects the interests of both the contractor and the client by providing a written record of the updated agreement rather than relying on verbal communication.

Other options do not accurately represent the concept. For instance, while a document for cancelling projects could involve change orders in certain situations, it does not encompass the broader definition of modifying existing work. A contract for new services would refer to an entirely new agreement rather than an amendment to an existing one, which change orders specifically address. Lastly, an agreement to lower costs is not the essence of a change order, as it could involve increasing costs based on changes to the project scope.