What is the difference between Addendum & Change Order use in project management ?

A change order is work that is added to or deleted from the original scope of work of a contract, which alters the original contract amount and/or completion date. A change order may fork a new project to handle significant changes to the current project.

Change order. Change Order refers to situations when you have the unilateral right to order a change.  For Buyers to have that unilateral right to make changes by change order the agreement must provide that right and include provisions on how the cost of those changes will be established.  True change orders are used for work where costs of the changes can be easily established by rates or pre-agreed formulas.

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An addendum is an additional document not included in the main part of the contract. It is an ad hoc item, usually compiled and executed after the main document, which contains additional terms, obligations or information.

Addendum is something that “adds to”. Addendum are most commonly used to describe a document that changes a request for bid or request for proposals prior to their due date. Those types of addendum do not require mutual agreement. You may also have Addendums to the agreement that describes documents that are “added to” the agreement prior to signing. In that case the agreement with the addendums requires mutual agreement.

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