Contract amendment

A formal change to a signed contract, such as more money, more time or new scope. Large changes may require a new competition instead.

Also called: Contract modification, Change order, Variation

Related terms

Ceiling price

The most a buyer will pay under a contract, even when work is paid by the hour. Work past the ceiling needs a contract amendment.

Option period

Extra time a buyer may add to a contract after the first term, at its choice, such as “two years plus two one-year options”. Options make a contract worth more than its first term.