A homeowner requests a change order to add a 200 square foot room addition. The original contract was for $180,000. Michigan law requires change orders to be:
Correct Answer
B) Written and signed by both parties
Michigan construction law requires all change orders to be in writing and signed by both parties, regardless of amount, to be legally enforceable.
Why This Is the Correct Answer
Michigan's Michigan Occupational Code and residential construction statutes require change orders to be in writing and signed by both parties to be legally enforceable. This requirement applies regardless of the dollar amount, protecting both homeowners and contractors from misunderstandings.
Why the Other Options Are Wrong
Option A: Notarized if over 10% of original contract value
Michigan law does not require notarization of change orders at any threshold. Notarization is a distractor. The law simply requires written form and mutual signatures.
Option C: Verbal agreements are sufficient if under $5,000
Verbal agreements for change orders are not legally sufficient in Michigan regardless of the amount. This is a common misconception — even a $500 change should be documented in writing.
Option D: Approved by the local building department first
Building department approval is required for certain work (permits), but it is a separate process from the contractual change order between contractor and homeowner. Approval from the department does not substitute for a signed change order.
Memory Technique
Change = Change in writing. If anything CHANGES about the contract, it must be WRITTEN and SIGNED by BOTH parties. Think: no paper, no promise.
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