A Change Order in residential construction is a legal document that can be used to alter or modify an already existing contract between two parties. This document outlines the changes made to the initial contract and facilitates the agreement between both parties on the new terms.
In most cases, Change Orders are created when work needs to be completed that was not included in the original scope of work outlined in the initial contract. These orders must clearly state all of the additional costs related to these changes, including any labor costs and material costs associated with them. The document must also include a detailed description of what specific changes are being requested, as well as which party will ultimately be responsible for paying for these costs.
All Change Orders should be signed by both parties and kept on record throughout the duration of a project, as they constitute a legally binding agreement between two parties.