Notice of Change in Terms

A notice of change in terms is a formal communication that informs a party to a contract of a modification or amendment to the original terms and conditions. In construction, a notice of change in terms may be used by an owner or contractor to adjust the scope, schedule, price, or other aspects of the work, or to respond to unforeseen circumstances or events. The notice typically includes the identification of the contract and the parties, the description of the change and its reasons, the impact on the contract terms and deliverables, and the effective date and procedure for acceptance or objection. The purpose of a notice of change in terms is to ensure that all parties are aware of and agree to the modification, to document the change in writing, and to maintain the integrity and enforceability of the contract. A notice of change in terms should be provided in a timely and clear manner, in accordance with the contract’s change order or amendment provisions, and with the appropriate level of detail and supporting documentation.