How does a change order affect an existing contract?

A change order serves as a formal document that amends an existing contract, and its primary purpose is to modify the terms or pricing associated with that contract. When circumstances arise that necessitate changes—whether due to shifts in project scope, unexpected conditions, or adjustments needed to fulfill the contract—it is imperative to document these changes formally. This ensures that both parties are in agreement regarding the new expectations and the financial implications of those amendments.

The modification can involve various elements, such as adjusting the price to account for additional work, extending deadlines, or clarifying specifications. By utilizing a change order, parties aim to maintain the integrity of the contractual relationship while adapting to changing circumstances. This practice helps to prevent disputes and ensures legal compliance, as the original contract still stands but is now updated to reflect the agreed-upon changes.