What is the function of an addendum in contract documentation?

An addendum is fundamentally a tool used in the process of contract management, specifically serving to modify or supplement the original contract documents before bids are submitted. This is crucial in the construction industry, where it is often necessary to clarify or add details that may have been overlooked or require updating based on evolving project requirements.

By issuing an addendum, the parties involved can ensure that all potential bidders are working from the same set of updated information, which helps maintain fairness and transparency in the bidding process. It can include changes to specifications, drawings, or conditions and is an essential part of managing the flow of information and expectations associated with a project.

The other options do not correctly represent the function of an addendum. For instance, it does not serve as the final agreement of the contract, nor does it provide a summary of the original contract or replace the need for a contract itself. Instead, it supplements the original documentation, which is critical for clarity and communication among all stakeholders involved.