Additional work?

Discussions about extra work, everyone who builds or has built has to deal with it. And often two parties are left feeling dissatisfied. Wise by trial and error? No, there is still a lot of litigation over extra work claims and settlements that leave both parties unhappy. Back to basics for a moment.

The biggest discussions are often about work that is necessary to realize a sound project, but which the contractor did not count on when concluding the contract ("it's disappointing" for the contractor). When it comes to plan changes (the building still being a bit larger or more luxurious at the client's request), the discussions are more about the markdown, rather than the question of whether additional work can be charged at all.

Whatever type of extra work is involved, the requirements imposed on the contractor have become increasingly stringent, and this is even laid down by law, and they may not be deviated from to the detriment of the client. A contractor must warn of a price change in case of changes prior to execution, unless the client could understand that price consequence by itself. This "unless clause" is not one the contractor should rely on, especially since the client has no expertise in the field of construction. Exactly how concrete the price change should be (a) "it's getting more expensive" or (b) "it's getting exactly amount X more expensive" is a topic on which there are as yet conflicting decisions by judges.

As a contractor, it is therefore better safe than sorry to always provide a concrete quotation prior to the execution of any additional work, including the consequences for the construction period. The client can then make a good decision whether or not he wants the extra work. If the extra work disrupts the construction process, report this in writing (e.g., by e-mail) and set a short deadline for a decision on the quotation. Proceeding without agreement frequently ends badly in procedures.

Conversely, it is important for clients to realize that commissioning additional work can disrupt the contractor's construction process, while you want this process to run smoothly. After all, the contractor must first figure out the desired extra work both technically and financially, and then it must be fitted into the schedule. Both client and contractor therefore benefit from good project preparation. This prevents discussions and disruptions during and after the construction process.