What is the difference between a contract modification and a change order?

Contract modifications and change orders are both tools that can be used to modify the terms of a construction contract. A contract modification is a legally binding document that officially changes the terms of the original construction contract. This document may be used to modify the scope of work, deadlines, payment terms, or any other provision of the contract. It is signed by both the contractor and the customer, and it typically requires the approval of a court or government agency. A change order, on the other hand, is more informal than a contract modification; it is a written form that documents decisions made by the contractor and customer to modify the agreed-upon contractor scope of work. A change order does not require the approval of a court or government agency and does not always become part of the contract. However, a change order does require signatures from both the contractor and the customer to be legally binding. In the state of New Jersey, a construction contract modification requires the approval of a court or government agency before it can take effect, while a change order does not. Therefore, any modifications to a construction contract must be made through a contract modification, not a change order, in order to be valid and legally binding.

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What is the difference between a contract modification and a change order?

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