When a company or an individual hires a contractor, they sign a legal document in order to secure the rights of themselves and with this agreement, the contractor has to provide the services that he agreed to and the owner or company has to pay the contractor in exchange of the services. In some situations, when the company wants to change the type of work or tasks needed for the company, it rights another contract with the contractor that point outs the changes in the work and the mutual agreement of both parties. This agreement is known as the work change agreement.
Brief Description of Work Change Agreement:
Companies and individuals require private contractors all the time as it is better to hire a professional contractor for providing services or work for the company on an individual rather than hiring the manpower on your own. This way you will need to pay a little more to the contractor but the responsibility of completing the work will entirely fall on the shoulders of the contractor and he will have the headache to complete the work on time. When a contractor is hired by a company or an individual, both parties sign the work or services agreement including the company and the contractor. This agreement secures the rights of each party as the company has the right to demand the mutually agreed services or work from the contractor and the contractor has the right to demand the money in exchange.
Once the agreement is signed, there is no way to make any changes in any terms and conditions by any party i.e. if the contractor wants to increase the rate of his work or if the company wants to decrease the duration to complete the work. With the agreement signed, they both need to stick to the clauses and mutually agreed terms of the agreement. But, there are some situations when the company has to change some works or tasks provided by the contractor and in order to do this officially and legally, the company signs a new agreement with the contractor in which the change in the work is explained and the contractor agrees to carry on the work with the changes made by the company. It depends on each situation if the rate of works or services also changes with the change work or if the contractor still agrees to charge at the same rate as before.
Here is preview of a Free Sample Work Change Agreement Template created using MS Word,
Key Elements to add in the Work Change Agreement:
- Name of the owner/project manager
- Name of the work provider
- Introduction to the company that will provide work
- Details of the work required by the owner
- Minimum quality required for the work
- Specification of the work
- Reasons to change the work
- Duration to provide the work
- Payments and rates for the work
- Terms and conditions of the agreement
- Termination of the agreement
- Violation results of the agreement
- Validation of the agreement
- Signature of both parties and witnesses
Here is download link for above shown Work Change Agreement Template,