Contracts & ExecutionQuestion 190 of 1632

An owner asks a contractor to add an unforeseen scope of work mid-project. To be paid for the extra work, the contractor should FIRST:

a.Get a written change order signed by both parties before starting it
b.Perform the extra work and add its cost to the final invoice
c.Get the owner's verbal go-ahead on site and note it in the daily log
d.Bill the extra work as a time-and-materials allowance at closeout

Explanation

On a home improvement contract, B&P §7159(c)(5) makes a change order part of the contract only if it is in writing and signed by the parties before any work covered by it begins, and §7159(d) says the same of any change to the contract. Doing the work first and adding it to the final invoice leaves the contractor arguing over an unauthorized extra. A verbal go-ahead with a log entry is not a signed writing, however contemporaneous the note. Calling the extra an allowance at closeout relabels the billing without supplying the signature the statute requires.

Law Reference: B&P Code §7159(c)(5), (d)

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