Extra Work and Change Orders

In California, a home improvement contract must describe the project and the significant materials and equipment. By law, it must also contain a section headed “Note About Extra Work and Change Orders.”

That section must state that extra work and change orders “become part of the contract once the order is prepared in writing and signed by the parties.” A change order “must describe the scope of the extra work or change, the cost to be added or subtracted from the contract.”

The Engagement Letter

Since March 4, 2002, New York has required lawyers to give most clients a written letter of engagement “before commencing the representation,” or within a reasonable time afterward where that is impracticable or the scope is not yet known. It must contain an “explanation of the scope of the legal services to be provided,” and an explanation of fees, expenses and billing practices.

When the scope or fee changes significantly, “an updated letter of engagement shall be provided to the client.”

Limited Scope

Under the American model rules for lawyers, “A lawyer may limit the scope of the representation if the limitation is reasonable under the circumstances and the client gives informed consent.”

The commentary gives examples. A lawyer hired by an insurer may limit the work to “matters related to the insurance coverage.” A lawyer and client may also agree “that the lawyer’s services will be limited to a brief telephone consultation.”

Ask for One

The Federal Trade Commission’s guide for homeowners hiring a contractor gives plain advice: “Even if your state doesn’t require a written agreement, ask for one.” The contract “should be clear and concise and include the who, what, where, when, and cost of your project.”

Changes go on paper too. “A change order is a written authorization to the contractor to make a change or addition to the work.”

The change order

The American answer to scope creep is a document. Either party proposes a change in writing, the supplier delivers an impact assessment naming the effect on fees, timeline and acceptance criteria, both sides approve, and only then does the work proceed.

The standard clause is blunt: work performed without an approved change order is performed at the consultant’s risk and may not be billable.

The American supplier is not defending the boundary of the work. He is building the machinery to price its expansion.

Scope creep

A named American business phenomenon with its own literature, its own software features and its own prevention advice: the gradual expansion of a project beyond what was agreed, without any corresponding change to fee or timeline.

It begins small. One more interview, a slide deck summarising the findings, a follow-up workshop. A consultant contracted for three research workshops and a report can end up delivering forty percent more work for the original fee.

The word exists because the behaviour is normal enough to need a name. Creep is the giveaway — nobody decided it, and it happened anyway.

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