Once your contract is in place and work has begun, your project will begin taking shape. At this point you will have made some major decisions, however there are a number of additional things that can come up. In some cases, these may require you and the contractor to change the terms of the contract or establish additional written agreements. Here's what this can involve:

Hidden Deficiencies - Contracts can only be based on the best information available to you and the contractor. Because renovation and repair work involves uncovering areas of your home not normally visible, there is always some potential for unanticipated problems. For instance, if a wall is opened up and the contractor finds old wiring that is hazardous, it must be replaced to meet Code requirements.

Where this is a potential issue, your contractor will have noted in the contract that the agreed price does not cover hidden deficiencies. Should such a deficiency be found, the contractor will need to determine what additional work is needed, and present you with this and a summary of the costs involved. Once you have approved this change, it becomes part of your contract.

Contingencies - Where some aspects of the project can only be determined once work in underway, contracts will often set aside a budget contingency. For example, if you suspect that your roof sheathing is in poor condition, you can only assess the situation properly once the existing shingles have been removed.

A contingency budget allows you and the contractor to resolve specific details as the work progresses, have the funds needed and amend the contract accordingly.

Change Orders - It is also quite common for homeowners to change their minds about details of a project once work has begun. For instance, once you see what the new flooring looks like, you may decide you want it installed in other areas of your home as well.

Change orders are used to accommodate this type of thing. The change order is like a mini-contract that defines the new work that is additional to that already covered in your contract, including the payment terms for this change. Change orders need to be signed by both you and your contractor.