What is required for a Change Order that increases the Project price?

The requirement for a Change Order that increases the Project price necessitates a written agreement executed similarly to the original Agreement. This is critical as it provides a formal and legally binding document that outlines the alterations to the contract, ensuring clarity and mutual consent between the parties involved. A written Change Order serves to document the scope of the changes, the justified reasons for the price increase, and the agreement of both the contractor and the client.

Documentation is especially important in contracts to avoid misunderstandings and disputes, as it maintains a clear record of what has been agreed upon. This written format aligns with standard contractual practices that help enforce transparency and accountability in any construction or service agreements. Relying on informal agreements or approvals, such as oral agreements or simple email confirmations, can lead to significant risks, including enforceability issues and ambiguity regarding the agreed terms. Approval from local government is not a standard requirement for Change Orders in most contractual agreements unless specifically stipulated, therefore it does not directly relate to the Change Order process.