What is the difference between a contract modification and a change order?
A contract modification and a change order are both legal documents that are used to make changes to an existing contract. However, they are different in some significant ways. A contract modification is used to make minor changes to an existing contract. These changes are usually limited in scope and do not alter the core terms of the contract. For example, if the price of a service were to increase slightly for an established contract, a contract modification may be used to adjust the existing contract accordingly. A change order is typically used to make more substantial changes to an existing contract. These changes often involve adding or altering services, changing terms of payment, or extending the timeline of an existing contract. In the state of Minnesota, a change order must be authorized by the contracting parties and will become a part of the existing contract. Both contract modifications and change orders must be properly documented and signed by both parties in order to be legally binding. It’s important to note that any changes made to a contract via a contract modification or change order must be in compliance with all applicable laws and regulations.
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