Performance : Amendments : Contract Amendments

Contract Amendments

The language included in every A&E contract contains details for handling changes in the contract’s performance period or terms. The reasons for amending a contract vary widely, but a contract amendment cannot be used to change or enlarge the scope of work beyond the contemplation of the parties, or the purpose or intent of the original contract.

Reasons for contract amendments may include:

  • minor changes in the scope of service or deliverables
  • revise the expiration date
  • increase or decrease the dollar amounts
  • terminate the contract
  • establish agreement on claims settlements
  • name change of firm

No matter what the reason for the amendment, the process takes time – can be two months or more including the ADM 2042 approval – and getting approval is the most critical part of the process. The sooner you begin the better.

At Caltrans, you must obtain additional HQ approvals using the A&E Amendment Pre-Approval Form (ADM 2042) for contract amendments, except for amendment for a name change.

The common practice is to create new contracts rather than amending existing agreements so proper planning is required when you are getting close to the end of your contract (about 6 months) or low on funds (about 30% left). HQ management may not approve an amendment. Discuss the need or allowability for an amendment with your DPAC coordinator at the earliest possible moment.