What is a Construction Addendum?
Definition: What Does the Term Addendum Mean?
This is a formal notification of a change in the project. This change can be in the form of an increase or a decrease in the scope of the work, a scheduling change, a change in the insurance requirements, the bonding requirements, a change of ownership, etc. Any formal change on a project should be accompanied by a formal addendum to the contract. The addendum becomes a formal part of the signed contract and is a legal representation of the current status of the project. In many cases, several addendums are issued to bidders on a project prior to the finalization of the bidding procedure. Addendums can be issued to change the bid date, add or delete scopes of work, add unit price requirements, change project conditions, etc. Addendum management during the bidding process is extremely important both for the issuing side of the process as well as the recipient of the addendum. Missing or ignoring addendums can result in disaster for the contractor as well as the owner.