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Contractor Change Notice

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CONTRACTOR CHANGE NOTICE

Date of Notice:    Project Name:    Contract No.:

Owner/Client Name:    Owner Address:

Contractor Name:    Contractor Address:

RECITALS

WHEREAS, Owner and Contractor entered into the Contract identified above for the performance of certain work described in the Contract Documents dated (the Contract); and

WHEREAS, circumstances have arisen that may necessitate a change in the scope, price, schedule, or other terms of the Contract; and

WHEREAS, the parties desire to document the proposed change and the mutual understanding regarding its effect on the Contract.

NOW, THEREFORE, the parties agree as follows:

1. CHANGE NOTICE IDENTIFICATION

This Contractor Change Notice shall be identified as Change Notice No. and relates to Contract No. .

2. DESCRIPTION OF CHANGE

The Contractor proposes the following change to the Work. The description must be sufficiently detailed to permit pricing and evaluation:

Change Type:

3. EFFECTIVE DATE

The effective date of this Change Notice is unless otherwise agreed in writing.

4. PRICE ADJUSTMENT

Original Contract Sum: $    Proposed Net Adjustment: $    New Contract Sum (if approved): $

The proposed adjustment is calculated to include direct costs, labor, materials, equipment, applicable taxes, subcontractor costs, overhead and profit as set forth in the supporting breakdown below. Contractor certifies that the amounts claimed are accurate and represent the change in cost attributable to the change in the Work.

5. TIME FOR COMPLETION

Contractor requests an extension of time of calendar days. The resulting Contract Completion Date would be .

The time extension claim is based on the following cause(s) and supporting facts:

6. IMPACT ON SCHEDULE, SHOP DRAWINGS AND OTHER CONTRACT DOCUMENTS

The parties acknowledge that the proposed change may require modifications to the project schedule, submittals, shop drawings, permits, or other Contract Documents. Affected documents are listed below and shall be revised by the Contractor upon written approval of this Change Notice:

7. PAYMENT PROCEDURE

If approved, payment for the change shall be made in accordance with the Contract terms. Contractor may submit invoices and supporting documentation for the approved Work and shall reference Change Notice No. . Retainage, if applicable, shall be handled as set forth in the Contract.

8. REPRESENTATIONS AND WARRANTIES

Contractor represents and warrants that it has the necessary authority, experience, personnel and financial capacity to perform the change; that the Work performed under this Change Notice will comply with the Contract Documents and applicable laws; and that the price and time requested are reasonable and solely attributable to the described change.

9. INSURANCE, BONDS AND INDEMNITY

Except as expressly modified herein, Contractor's insurance, performance and payment bond obligations, and indemnity obligations under the Contract shall remain in full force and effect. Any change in insurance or bond requirements resulting from this Change Notice shall be set forth in writing and attached hereto.

10. CLAIMS AND DISPUTES

The submission or acceptance of this Change Notice shall not prejudice or waive any party's rights to assert claims for additional costs or time beyond those expressly set forth herein, except where this Change Notice is specifically executed as a full and final settlement of identified claims and accompanied by a written release.

11. NOTICES

Notices under this Change Notice shall be given in writing to the addresses set forth below and shall be effective upon receipt as provided in the Contract.

12. MISCELLANEOUS PROVISIONS

Governing Law: This Change Notice shall be governed by and construed in accordance with the laws of the state specified in the Contract without regard to conflict of law principles.

Entire Agreement: Except as expressly modified by this Change Notice, the Contract Documents remain in full force and effect. This Change Notice, when executed by authorized representatives of the parties, constitutes the entire agreement between the parties with respect to the subject matter hereof.

Severability: If any provision of this Change Notice is held unenforceable, the remaining provisions shall remain in full force and effect.

Amendments and Waiver: This Change Notice may be amended only by a written instrument executed by both parties. No waiver shall be effective unless in writing and signed by the waiving party.

Counterparts: This Change Notice may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Facsimile or electronic signatures shall be deemed as valid as originals for purposes of execution.

Owner / Client:

By:

Date:

Contractor:

By:

Date:

Enter text✕

What a Contractor Change Notice Is and When It Applies

A Contractor Change Notice is a formal written record used to describe, authorize, and document alterations to an existing construction or service contract. It captures who requests the change, a clear description of the scope modification, any adjustments to schedule or cost, and the required approvals so the original contract remains auditable and enforceable.

Why a Clear Change Notice Matters

Using a standardized Contractor Change Notice reduces misunderstandings, creates an auditable approval trail, and protects parties from disputes over cost, scope, and schedule. It ensures decisions are documented, preserves payment evidence, and supports regulatory and tax recordkeeping requirements.

Why a Clear Change Notice Matters

Who Typically Prepares and Receives This Notice

The Contractor Change Notice is used by project teams to record agreed modifications and route approvals.

  • General contractor or subcontractor — drafts the notice with scope and schedule changes and submits for approval.
  • Project owner or construction manager — reviews, negotiates cost or time impacts, and provides formal acceptance or rejection.
  • Procurement or contract administrator — files the approved notice with contract records for audit and payment processing.

Proper use ensures a single authoritative record of changes and helps avoid downstream disputes or payment delays.

Step-by-Step: Preparing a Contractor Change Notice

Follow these steps to prepare, route, and finalize a change notice so it becomes part of the contract record.

  • 01
    Identify Contract: Confirm contract number and parties before drafting.
  • 02
    Describe Change: Write a clear scope and exact deliverable adjustments.
  • 03
    Document Costs: Specify price adjustments and payment schedule.
  • 04
    Obtain Approvals: Collect required signatures and archive the approved notice.

Typical Review and Approval Flow for a Change Notice

A consistent routing process reduces turnaround time and clarifies who must approve each change before it becomes effective.

  • Draft: Contractor creates the notice with attachments.
  • Internal Review: Project manager verifies scope and cost reasonableness.
  • Owner Approval: Owner or authorized rep signs or rejects the change.
  • Record: Approved notice is filed with contract documents.

How to Configure an Online Change Notice Workflow

Configure these settings when automating change notices to ensure control, traceability, and timely notifications.

Template Create a reusable form with required fields and attachments.
Conditional Fields Show cost fields only when 'Cost Impact' is positive.
Authentication Require email or SMS verification for signers.
Audit Trail Capture timestamps, IP, and signer attribution.
Notifications Send automatic reminders until approvals are completed.

Technical Considerations for Digital Submission

Ensure the chosen platform supports secure attachments, signer authentication, and a reliable audit trail before e-submission.

  • Integrations: CRM, ERP, and project systems for auto-filing.
  • File Formats: PDF, DOCX accepted; preserve original attachments.
  • Signer Authentication: Email, SMS, or stronger verification methods.

Use platforms that retain a tamper-evident copy and export signed PDFs for accounting and audit purposes.

Essential Elements to Include in Every Professional Notice

A complete Contractor Change Notice contains structured items that make approval, accounting, and audit straightforward for all stakeholders.

Change Summary

A short, numbered description of the work change with specific deliverables and measurable acceptance criteria to limit ambiguity and scope creep.

Cost Adjustment

Clear statement of additional or reduced compensation, payment terms, and whether the amount is fixed, estimated, or provisional pending further billing.

Schedule Impact

Identify any changes to milestone dates or completion deadlines, and spell out liquidated damages or extension conditions if applicable.

Supporting Documents

Attach revised drawings, specifications, time sheets, or supplier quotes that substantiate cost and schedule assertions for review.

Approvals Required

List roles and names authorized to sign, their approval order, and any delegated authority thresholds for expedited decisions.

Record Reference

Cross-reference original contract clauses, amendment numbers, and any prior change notices for clear auditability.

Security and Compliance Controls to Protect Change Notices

Encryption: TLS 1.2/1.3 and AES-256
Audit Trail: Timestamped signer actions
HIPAA BAA: BAA required if health data present
Two-Factor: Optional 2FA for signer identity
Access Controls: Role-based permissions
Retention Settings: Exportable, immutable copies

Common Risks and Legal Consequences of Poor Notices

Contract Breach: Unapproved work may be disallowed
Payment Delays: Missing approvals can stop invoicing
Lien Exposure: Improper notices may affect lien rights
Tax Reporting: Incorrect amounts can trigger penalties
Regulatory Fines: Public project rules may impose fines
Invalid Notice: Signature defects can void the change

Frequent Preparation Errors to Avoid

  • Vague descriptions that omit measurable deliverables often lead to scope disputes and contractor-owner disagreement during acceptance.
  • Failing to attach supporting cost documentation such as supplier quotes or time records weakens the justification for price adjustments.
  • Using unauthorized signers or missing signed approvals creates grounds for withholding payment and can be treated as an invalid change.
  • Not updating related schedules, purchase orders, or budgets after approval results in downstream reconciliation errors and project delays.

Recommended Timelines and Processing Expectations

Timely processing keeps projects on schedule; below are commonly used internal timelines for issuing, reviewing, and recording change notices.

Issue Upon Discovery:

Submit notice as soon as the change is identified to preserve mitigation options.

Contractor Response Window:

7–14 calendar days is common for cost estimates and supporting documentation.

Owner Review Period:

7–21 calendar days depending on project complexity and required approvals.

Finalization:

Execute and archive the approved notice within 30 days of acceptance where possible.

Payment Processing:

Align invoicing to payment cycles after approval to prevent delays.

Key Milestones from Request to Record

A sequential milestone view clarifies responsibilities and expected completion windows for each stage of the change process.

01

Request Submitted

Contractor files the notice and uploads supporting evidence for review.

02

Technical Review

Project manager verifies scope and schedule implications.

03

Commercial Approval

Owner or designated approver agrees to cost and payment terms.

04

Archive and Notify

Signed notice is stored and stakeholders are notified for execution and billing.

How a Change Notice Differs from Related Contract Documents

Compare common document types to choose the correct form and ensure proper routing and enforceability.

Criteria Change Notice Contract Amendment Change Order
Primary Purpose document minor changes modify core contract terms authorize scope/work change
Formality Required less formal more formal project-level formality
Timing near-term adjustments can be retroactive before work proceeds typically
Filing filed with contract records requires amendment numbering linked to specific po/invoice

eSignature Vendor Comparison for Executing Contractor Change Notices

Select an eSignature provider that supports secure signing, audit trails, and any industry-specific compliance required for your notices.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial No No Yes, limited Yes, limited
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Practical Examples of Contractor Change Notices in Use

These brief scenarios illustrate common uses of a Contractor Change Notice and the value of precise documentation.

Construction Project Example

A contractor identifies an unforeseen site condition and submits a change notice with photos and supplier quotes

  • Owner requests a revised schedule and cost estimate
  • After technical and commercial review the owner signs, the project schedule is updated, and payment is processed per the revised terms.

Property Management Example

A property manager requests additional work after tenant damage and issues a change notice with scope and cost

  • Contractor provides a fixed-price estimate and timeline
  • The owner approves electronically, the work proceeds, and the notice is filed with leasing records for accounting.

Practical Tips for Faster, Lower-Risk Change Notice Handling

Apply these best practices to reduce disputes, accelerate approvals, and keep financial records audit-ready.

Be Specific
Describe changes with measurable deliverables, acceptance criteria, and reference drawings to limit interpretation disputes.
Attach Evidence
Include supplier quotes, revised drawings, and time records to substantiate cost and schedule impacts for reviewers.
Use Approved Signers
Restrict execution to designated approvers to prevent invalidated notices and payment rejections.
Archive Immediately
Store signed notices in a central, tamper-evident repository with exportable signed PDFs and audit trails.

Frequently Asked Questions About Contractor Change Notices

Answers to common questions about validity, signatures, notarization, corrections, and storage for Contractor Change Notices.


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