ARTICLE
1 October 2024

Extra Work In Construction Contracts

With all construction projects situations arise that will require work outside the original scope of the contract. What is the correct way to add additional work?
United States Real Estate and Construction

With all construction projects situations arise that will require work outside the original scope of the contract. What is the correct way to add additional work? Once a contract is signed by the parties it can only be changed in writing and signed by both parties. What does that mean for contractors? If you do not have a written change order describing the work, the cost and the signature of the person that hired you, you are not entitled to be paid for the extra work. Meaning if you do work outside your original scope without a change order you are working for free.

Change Orders for Residential Construction

For residential contractors, when you are on the project and the homeowner asks you to change something or do something extra that will cost more, you can usually comply with the change order requirement by an email or a text message. Meaning get approval for the extra work in writing via text message or email before you do the work. I have had many clients who would get verbal approval for extra work during the project, but when it came time to get paid for the extra work the homeowner denied that they gave approval and my clients were not paid for the extra work.

Change Orders in Commercial Construction

Getting paid for extra work on commercial construction projects is more complicated. Make sure you read the specific provision in your commercial contract that deals with change orders, who must approve them and how. When it comes to extra work in commercial construction projects, disputes often arise whether the requested work is extra or not.

What to Do When Extra Work Disputes Arise

When this situation arises, I advise my clients to submit a change order request for the extra work detailing how the extra work is not included in the original scope of the contract. Even if the change order request is denied move forward with doing the extra work, because if you don't you will likely be terminated. If they still refuse to pay you for the extra work after it is completed, file a lien for the amount that you are owed. I know this is not an ideal situation, but if you are terminated, it will be difficult to get paid any amount you may be owed.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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