Which action is essential for a change order to be binding?

Which action is essential for a change order to be binding?

• A. Oral approval from the project manager
• B. Signature by only the contractor
• C. Signature by both parties
• D. Notarization by a public official

Answer: (C)

Mutual written assent makes a change order binding. A change order is a formal modification to the contract that changes scope, price, or schedule, and it only becomes enforceable when both parties explicitly agree in writing and sign the document. Relying on oral approvals doesn’t create a binding agreement because there’s no signed, dated record to prove the change was agreed to. A signature from only the contractor doesn’t bind the owner, and notarization isn’t required for the change to be enforceable. In short, the essential action is signatures from both parties confirming the agreed-upon change.

Mutual written assent makes a change order binding. A change order is a formal modification to the contract that changes scope, price, or schedule, and it only becomes enforceable when both parties explicitly agree in writing and sign the document. Relying on oral approvals doesn’t create a binding agreement because there’s no signed, dated record to prove the change was agreed to. A signature from only the contractor doesn’t bind the owner, and notarization isn’t required for the change to be enforceable. In short, the essential action is signatures from both parties confirming the agreed-upon change.