Not all construction projects stick to the initial scope of work. Modifications commonly happen. And while they are, in most cases, formally written and approved, at times, they are added without formal change orders.
Scope creep is a major problem in the construction industry, often leading to budget overruns, missed deadlines and increased disputes. But what causes it?
Vagueness in the contract
A construction contract with vague language increases the likelihood of scope creep. If the scope of work clause is not clear, leaving room for different interpretations, a project owner can add work, and a contractor or subcontractor may not have much protection.
Poor communication
Typically, construction projects involve several parties, including the owner, stakeholders, contractors, subcontractors, architects, designers and so on. If all involved parties are not on the same page about what’s included and excluded in the project, scope creep can occur.
Examples include:
- A client telling a subcontractor to include an additional feature, bypassing the general contractor
- An architect changing a wall’s location or a room’s layout without formal change orders
- A designer upgrading finishes, such as flooring material, because the material choice was not specified in the contract
Besides scope creep, poor communication can lead to misunderstandings that can negatively impact a project.
Gold plating
A professional working on a construction project may add unrequested features to exceed a client’s expectations. This is called gold plating. It’s often done with good intentions, but it often leads to scope creep. Adding a high-end flooring material can impress a client, as it adds value to the project. However, it can lead to more work.
Changes to the scope of work should be formally approved and compensated. If you are a contractor or subcontractor dealing with issues caused by scope creep, legal guidance is crucial in protecting yourself.
