change order
Definition
A change order is a written document that officially modifies an existing contract between you and a contractor or vendor, updating the scope of work, timeline, or price after the original agreement was signed. Both parties must agree to and sign the change order for it to be legally binding, making it a formal amendment to your original contract.
Example
You hire a contractor to renovate your shop for $20,000, but mid-project you decide to add new flooring, so you both sign a change order that adds $3,500 and five extra days to the project.
Watch Out
Never let a contractor start extra work based on a verbal agreement alone, because without a signed change order you may have no legal obligation to pay for it or, worse, no proof of what was actually agreed upon.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.