What is the difference between "change order" and "supplemental agreement"?

The distinction between a change order and a supplemental agreement revolves primarily around their purposes and the aspects of the contract they each address. A change order specifically refers to a modification made to the existing scope of work within an ongoing project. It acknowledges alterations that may arise during construction, which can involve adding, deleting, or altering specific tasks, thereby impacting the original project plans.

On the other hand, a supplemental agreement generally encompasses broader contractual modifications. This could involve alterations to the terms of the contract itself, such as adjustments in pricing, extended timelines, or changes in responsibilities that may not directly correlate to the daily scope of work, therefore accounting for aspects beyond merely the project tasks.

Ultimately, understanding this distinction is vital for contractors and clients alike, as it clarifies how project changes are processed and documented, ensuring both parties remain aligned on contractual obligations and expectations. This understanding aids in successful project management and the minimization of disputes.