A change order must be approved by which parties before it becomes legally binding?

A change order must be approved by both the owner and contractor before it becomes legally binding because these two parties are typically the primary stakeholders in a construction contract. The owner, as the party financing the project, has the final say in any changes that affect the scope, cost, or timeline of the work being performed. The contractor is responsible for executing the work and needs to agree to the changes in order to adjust planning, resources, and schedules accordingly.

The agreement on a change order ensures that both parties understand and accept the modifications, which is crucial for maintaining project integrity and legal compliance. While other parties such as architects and subcontractors may be involved in the discussion or evaluation of the changes, the formal legal approval lies between the owner and contractor. This maintains a clear line of authority and responsibility in the contractual relationship.