Commercial contracts are important documents between one or more parties which can solidify business relationships.

Depending on the nature of the contract, there may be ongoing negotiations involved between your business and the other parties to ensure that you reach an agreement that benefits everyone involved. As these negotiations unfold, you may need to make changes to your contract to reflect any new arrangements. 

You may also need to make amendments to your existing contracts if your business undergoes any changes or restructuring.

Contract amendments will help you address these changes in a smooth way that doesn’t damage the underlying commercial relationship.  

What Is A Contract Amendment?

Contract amendments can range from adding a clause to a contract to more extensive changes to the agreement.

The extent of the amendments needed may depend on whether you’re making significant changes to your business. Or maybe you’ll need to make major changes to your agreement based on feedback you’ve received from the other party following negotiations. 

If you find that you need lengthy and extensive amendments to your contract, it might be better for you to create a new contract altogether. This could be a cost-effective and efficient option for you. 

When Do I Need Contract Amendments?

Whenever your business circumstances change and your original commercial relationship strays from the original contract, you must consider getting a contract amendment. 

This is because you want your contract to reflect the current understanding between you and the other parties. 

There are a range of situations which may affect the business relationship between the parties in your contract. Some reasons you may need to amend your contract include:

  • Changes in the scope of work: a party may be required to complete a new set of obligations under the contract
  • Regulatory and legislative changes: for example, the ACCC now requires mandatory wording for warranties against defects
  • If a provision isn’t working as planned, amendments can be made to ensure that it is removed from the contract or altered to reflect the current business practices 

So, in most circumstances, it’s best to get a contract amendment any time you and the other parties to the contract agree to a change in your commercial relationship.

An Example 

Monica has been running a distribution company for five years and has built a long term relationship with her supplier. 

Due to the growth of her business, Monica requires her supplier to increase the amount of shipments made each month. 

She takes this request to her supplier who agrees to the change.
To ensure this change in the business deal is solidified, Monica requires an amendment to her existing Supply Agreement to reflect the new terms of the deal. 

And, with the increasing amount of shipments, there may be additional risks involved as there is a lot more at stake. This is all the more reason for Monica to get the original contract amended.

Need Help With A Contract Amendment?

An up-to-date commercial contract with relevant contract amendments are important to securing and maintaining your commercial relationships. 

Having a lawyer draft your Contract Amendments will ensure your contracts reflect the current practices between your business and the other parties to the contract. 

Feel free to get in touch with us to have a chat to us about your business and your questions about a Contract Amendment. You can reach us by giving us a call on 1800 730 617 or via email at

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