Home Construction Contractors: 8 Must-Ask Questions About Scope of Work
One easy way that a residential contractor can get into trouble is by taking for granted the importance of a clear scope of work in your contract.
There’s a comfort in not having to do the pain-staking work of detailing every component of a potential customer’s project. Maybe because it’s hard, or it’s time-consuming, or you want to appear “flexible” and “easy to work with” for a new customer by telling them we’ll work all that out later.It’s a huge mistake. Don’t do it.
First, it’s not honest, or real. Both you and the customer deserve -and need- to know what you’re getting yourself into.
And skipping over the details of your work scope can create huge — and potentially expensive — problems for you if your scope of work for a project isn’t dialed in.
It’s just not enough to state in a proposal, “Contractor to remodel master bathroom per the Homeowner’s drawing.”
Remember, most customers have never done this before. So they are inherently relying on you to be their “expert.”
So before entering into an agreement, ask these 8 questions about the project:
- Does the design cover everything?
- Is there sufficient detail and dimensions in the drawing?
- Are the selections clear and detailed?
- Does the contract or proposal tie to the drawings or specifications, and does it account for things that are not decided upon yet – whether through an allowance, a contingency, or just a known change order when a decision is made?
- Will that future decision impact the time of the work or adjacent work and the costs thereof?
- Are you being hired as a design/builder — i.e. there is no design, but rather the homeowner is relying on you to turn their general vision into a reality?
- If “yes” to #6, are the customer’s objectives clear?
- Is the design and specification process laid out to create at least the majority of the constructable design before work begins?
There’s a good chance that the customer might not understand the effects that their decisions — or indecision — can have on the project as a whole.
For example, a customer asking for a finished basement may not be aware that, if they haven’t decided on their electrical needs until after framing begins, there will be more (and costly) work required to install switches, outlets, and fixtures later.
If nothing else, your contract must be clear about how designs or decisions made later will have an impact on the duration and cost of the job.
Those details should also be explained to the customer in person, or at least over the phone, to ensure they understand.
If you’re a home construction contractor and would like help with your residential construction contract, fill out our contact us form. Reference this article and you’ll get a complimentary consultation with one of our legal team members.
You can also find more related information in our Guide to Avoiding Residential Construction Contract Nightmares.
