Construction contracts contain important information about the entire project. This document should include the type of work that’s being done, a description of the project, the deadlines, materials that will be used, and payment information.
It’s important to be as detailed as possible when describing the project and what’s covered by the contract. For a contractor, having as much detail as possible can help to prevent scope creep from occurring.
What is scope creep?
Scope creep occurs when the client tries to add components to or change the requirements of the project. This can be done by changing specifications, project guidelines or anything else related to the project. In some cases, the changes come so slowly that they aren’t really noticed.
The issue with scope creep is that it often means the contractor isn’t making the money they should on the project. This is often because of an increase in man hours or materials. For example, if a client hires a contractor to build a fireplace, the elements of the fireplace should be included in the contract. Adding a fireplace mantel to the project could be considered scope creep if the original contract didn’t include a mantle.
When clients want to add or change contract elements, it’s a good idea to review the contract and update it. If the changes come with a change to the timeline or the cost, those should be clearly stated in the new contract. Even if those aren’t changing, the updated contract can help to prevent future issues, such as claims related to failing to meet project expectations.