Florida Building Contractor Business/Finance Practice Exam

What is the appropriate action for a contractor if the owner requests additional work after project completion?

1. Negotiate a price

2. Write a new contract

3. Inform the subcontractors

4. Complete the work at no charge

The correct answer is: Write a new contract

In the scenario where an owner requests additional work after a project has been completed, writing a new contract is the most appropriate action for a contractor. This is because any work that occurs outside the scope of the original contract must be formally documented to ensure all parties are on the same page regarding the expectations, scope, and compensation for the new work being requested. Creating a new contract establishes clear terms for the additional work, including the specific tasks to be performed, the timeline for completion, and the pricing. This protects both the contractor and the owner by formalizing the agreement and helping to prevent disputes down the road. A new contract will detail the obligations of both parties, ensuring transparency and mutual understanding. While negotiating a price is important, without a formal agreement outlining the new terms, the work may lead to misunderstandings or conflicts regarding payment or scope. Informing subcontractors might be necessary, but it should happen after establishing a new contract to ensure they are aware of the amended responsibilities. Completing the work at no charge is generally not a sustainable or advisable option, as it could undermine the contractor's business model and set a precedent for future requests.