“Consultants always know that when you see the light at the end of the tunnel…order more tunnel.” – David Tickner
What is an Addendum?
Generally speaking, an addendum is an item of additional material added at the end of a book or other publication.
In terms of business, an addendum is a document or information attached or added to clarify, modify, or support the information in the original document or written work. In construction industry for example, an addendum issued by a client during the bidding process becomes part of the contract documents when the contract is awarded.
An addendum is also an agreement between the parties that have concluded a contract by which they agree to its modification, completion or subsequent termination. In commercial contracts, addendum has an important role because these parts perform updates and breakdowns of contracts lengthy or materialized mutual obligations assumed under framework contracts.
The addendum can also serve a purely informational purpose, such as a supplement to a book or documents that demonstrate a particular issue within a contract. In these cases, the information may also contain drawings or diagrams if the information is needed to clarify the particulars of an agreement.
As with other portions of the contract, addendums often require signatures for all parties involved in the negotiation. This process provides acknowledgement that the new information has been reviewed and accepted by the parties involved and becomes a binding part of the contract it may be associated with. The signing may require a witness to ensure validity.
Addendums and Amendments
While both addendums and amendments provide for changes to previously created documents, addendums are added to works in progress, or contacts that are in the development phase that have not yet been executed. In contrast, amendments are used on documents that were previously considered complete, fully agreed upon by all parties, and were executed in their original form according to Investopedia.
Addendum or Addenda
Addenda is the plural form of addendum. If you have more than one addendum, use addenda, not addendums.
Addenda is the original Latin plural. However, addendum has been an established English word since the mid-sixteenth century, and as such has taken on the English plural of addendums.
To put it in a nutshell: an addendum is an addition to a completed written document. Most commonly this is a proposed change or explanation (such as a list of goods to be included) in a contract, or some point that has been subject of negotiation after the contract was originally proposed by one party. Real property sales agreements often have addenda (plural of addendum) as the buyer and seller negotiate fine points (how payments will be made, what appliances will be included, date of transfer of title, the terms of financing by the seller and the like).
Although often they are not, addenda should be signed separately and attached to the original agreement so that there will be no confusion as to what is included or intended. Unsigned addenda could be confused with rough drafts or unaccepted proposals or included fraudulently.