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When parties begin construction they enter into a contract and decide upon the scope of work.
The impact of changes in the scope of work – in terms of money and time – is probably the most disputed issue in construction. In order to keep the project moving toward completion, the following are a few pointers for owners and contractors to consider:
- set out the terms of the contract in writing including a detailed description of the scope of work and explicitly layout the work not to be performed;
- the contractual provisions governing changes to the scope of work should be done in writing and be approved by the owner;
- understand the nature of the contract, whether it is a cost-plus contract or a fixed price contract;
Since there are considerable ramifications in construction contracts, you should seek legal advice as a lien could be placed on your property if the contractor is not paid or if the contractor’s bill is disputed.