What Should be Included in the Scope of Work?
The scope of work is one of the most important pieces of a construction contract because it outlines the work to be performed on a project. Ideally, it will provide enough detail for all parties involved to understand the work expectations with no ambiguity. It should also make clear that no other contract documents change it without your express written approval.
So, what details should be in the scope of work section of your contract, and what language should you include to ensure that other parts of the contract don’t modify the scope? Read on to find out.
What is the purpose of the scope of work?
The scope of work defines what you are obligated to do to fulfill the contract and the dates that you should complete those obligations.
If your scope is inaccurate or incomplete, it can lead to misunderstandings and conflict between your company and the other party of the contract. Spending time upfront to define the scope clearly will save you time in the long run and help you avoid expensive litigation in the future.
The process of defining the scope begins at the bidding stage but continues to evolve during contract negotiations. It’s important to remember that the bid is not your contract, and getting the bid is only the first step in negotiating the final scope of the project.
The elements that belong in the scope of work
A complete, detailed scope of work should include the following:
The goals of the project
Guidelines for how the work will be completed
Deliverables that finely detail the work expected to be completed at the end of the contract
Deadlines
Costs
Other details that are often in the scope include:
Qualitative and quantitative performance requirements
If the project is construction or design-related, notices and drawings will be included
The tools and equipment that will be necessary for the job
Identification of additional resources needed to complete the work
The scope will also include a payment section that breaks down costs either as a whole or per individual task.
Beware of contract documents that can change the scope of work
Often, contractors pay a lot of attention to detailing the scope of work in a bid but don’t pay as much attention to the scope in the final contract. Remember, your bid is NOT your contract! Haphazard contract negotiations can be disastrous for contractors if there is language outside the scope of work section that requires subcontractors to do any of the following:
Identify site defects and the defective work of others
Be responsible for subsurface conditions
Be liable for incomplete plans
Add incidental work to the scope
Absorb price increases for incomplete plans
Protect your work after you leave the project
Protect the work of others
Being accidentally saddled with any of these responsibilities can quickly degrade your profits on a job and turn it into a financial loss.
How to protect yourself from additional responsibilities outside the scope of work
One way to protect yourself from taking on responsibilities outside the negotiated scope of work is to include some of the following language in your contract (Please note that this language is just an example. You should always consult with your attorney before making modifications to a contract.):
Subcontractor’s scope of work is limited to the Subcontractor’s Bid Proposal. The Scope of Work excludes the following:
A
B
C
(In this initial section, you would expressly exclude responsibilities outside the Scope of Work on which you based your bid.)
Examples of language you may include in the above list are:
Subcontractor’s obligation to examine documents, project site, and materials, and work furnished by others is limited to notification of Contractor that any defects or deficiencies that a person in the trade of Subcontractor would discover by reasonable visual inspection.
No testing beyond reasonable visual inspection shall be required.
Subcontractor is entitled to rely on the accuracy and completion of plans, specifications, and reports of the site provided to the Subcontractor.
Subcontractor is not responsible for incidental or inferable work.
Unknown or unidentified subsurface conditions are not part of the Scope of Work.
A change in the price of an item of material of more than 5% between the date of the Subcontractor’s Bid proposal and the date of installation shall warrant an equitable adjustment in the subcontract price.
Subcontractor shall not be liable for any damage to the work caused by others.
Failure to give notice within a particular time is not a waiver of any Subcontractor rights.
Language and clauses like those listed above can save you from significant losses, a legal battle, or being forced to meet unfavorable contract conditions.
Before making any changes to a contract or signing off on the scope of work, you should hire an attorney to help you review the document. If you need assistance negotiating or reviewing a contract for an upcoming project, get in touch with Daffern Law Firm today.
