A contract is formed any time two people make an agreement to do, or not to do something. Contracts can take on many forms, from a verbal agreement sealed with a handshake, to a formal complex written contract. Certain types of contracts, involving commercial transactions, must be in writing in order to be valid. The parties may only modify written contracts through written agreement. In addition, if an estimate is incorrect or the scope of work changes in a contract, the parties need to write an addendum and both parties need to sign it to modify the original agreement.
Business clients can rarely define every requirement and foresee every implication that may result. Project managers cannot foresee every risk or problem that may come up on their projects. The key to successfully managing the project is to make sure that there is agreement on a process for revising the requirements when needed. Amendments should contain the same degree of specificity for changes that the original contract contained. The principle areas where changes are made and for which amendments are required include scope of work, costs, and period or performance. (www.ofm.wa.gov)
The contract between Span and Citizen-Schwarz (C-S) is a very complex contract
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