Contracts & ExecutionQuestion 205 of 1632
A subcontract should clearly state the scope of work primarily to:
a.To fix the price the owner pays for every change order made
b.To keep disputes from arising over what counts as extra
c.To settle which of the parties must pull the building permits
d.To decide which trades must carry their own license
Explanation
A precise scope prevents gaps and overlaps, making clear which work the subcontract price already covers and which is extra work that needs a change order. What a change order costs is set by the contract's pricing terms, not by the scope. Permit responsibility is its own provision. And license classification is a legal requirement that the parties cannot assign to each other in a scope clause.
Law Reference: Subcontract scope / change orders (industry practice); B&P §7159 (change orders in writing)This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)