What portion of a contract is often referenced for changes in pricing or terms?

The change order clause is a critical component of a contract that addresses alterations in pricing or terms. This clause allows for modifications to the original contract, often as a result of unforeseen circumstances, project scope changes, or additional work that needs to be undertaken.

Whenever parties need to adjust terms, such as pricing or deadlines, the change order clause establishes the necessary procedures and guidelines to formalize these changes, ensuring that both parties agree to the modifications in writing. This process protects the interests of both the buyer and the seller by providing a clear mechanism for handling changes that might affect the contract’s execution. Additionally, it helps prevent disputes by defining the terms under which modifications are permissible, including how price adjustments will be calculated and documented.

In contrast, other portions of the contract, such as the notice of award, scope of work, and bid proposal, do not typically include mechanisms for adjusting costs or terms after the contract has been executed. The notice of award signifies the acceptance of a bid, the scope of work outlines the specific tasks to be completed, and the bid proposal lays out the initial financial offer and terms but does not provide for modifications once the contract is in effect. Thus, the change order clause is essential for managing and documenting necessary amendments throughout the