What is a residential construction scope of work?

As the title implies, a residential construction scope of work documents the work to be performed in a home renovation project. It includes the responsibilities, milestones and other details that clearly define expectations of both the client and contractor. Agreeing to these from the onset helps keep everyone on the same page and can avoid costly change orders and repeated requests for work outside of the scope as the project progresses.

How Does a Residential Construction Scope of Work Differ From a Contract?

While some pros use the word contract and scope interchangeably, they differ. A residential construction scope is part of the contract, not the actual contract. The scope outlines the elements of a job, including deliverables, price and more. The residential scope of work may be attached as a separate document to a contract, or included as a section within the contract. To learn more, see How to Write a Construction Contract.

Why is a Residential Construction Scope of Work Important?

A residential construction scope of work is one of the most important documents you will write. It provides clarity around the expectations for both contractors and clients and can be referenced as the project progresses should disputes arise. It breaks down everything you are promising the client, when it will be delivered and at what price. It sets timeline milestones, start and finish dates, and payment schedules. It also communicates who is responsible for what work on a client’s home.

Once the project gets started, pros use the scope of work to help track the progress. budget and changes as they arise. To avoid scope of work creep, document in writing all changes which stray from those agreed upon in the residential scope of work. This provides documentation on who is responsible for change orders, especially those that impact the project budget.

Who Prepares a Residential Renovation Scope of Work?

The contractor, project manager or designer typically creates the residential renovation scope of work in collaboration with other team members. They outline and detail the work planned on a client’s home, milestones, and timelines. The person responsible for drafting the scope collects all the necessary information, documents and visuals to include in the scope of the work. Then, once everyone reviews and agrees on the details in the scope document, it is distributed to all involved for future reference. 

What Does a Residential Construction Scope of Work Include?

Most residential construction scope of work examples include similar basic information which can be customized for your specific project and needs. Here are the typical sections:

General Project Details - A brief summary of the project basics: Date, client and project name, address, phone number of main contact and contractor’s name and address, and phone number of main contact.

Project Objective - A one sentence description of the overall objective of the work you plan to perform on a client’s home. For example, it might say: Deliver a high quality renovated master bathroom on time and within budget according to the plans agreed upon by the clients. 

Statement of Work/Deliverables - A list of what will be provided, including:

• Materials
• Labor including contractors and subcontractors
• Skills that will be required to perform the work
• Tasks and responsibilities including how they will be delivered and measured and how long each will take

Projected Timeline - This specifies the length of the project, start date and completion date. It may also include the timeline for each deliverable.

Price - List the total price for each deliverable category here. This is likely to include labor, permits and fees, and materials. Also, include product totals depending on the type of project. For a bathroom, this might include a heading for the vanities, tub, toilet and more. Learn more about How to Price Construction Jobs precisely.

Exclusions - Some renovation pros include a caveat to provide clarity of what they are not responsible for. This could be a place to emphasize work typically included in projects that is not part of this scope such as disposal of existing appliances or cabinets should the client choose to sell or donate them. 

Payment Schedule - A list of dates, and payment amounts to be paid by the client at specific milestones. View our Guide to Construction Payment Schedules to learn more.

Acceptance - The document concludes with a space for approval signatures.

Things to Do Before Writing a Residential Construction Scope of Work 

Before you start writing the residential construction scope of work, simply the task with these tips:

Review examples - Imitation is the greatest form of flattery and learning how others format theirs can help inform yours. There are plenty of residential construction scope of work examples and templates available online.

Find or create a template - Use what you learn to create or pick a scope of work template. You can download our free residential construction scope of work template above. 

Understand your client’s needs - Every project and client includes aspects that make it different from another, and it is important to consider those expectations when deciding how to approach the scope of work. Meet with your client in advance to clarify their expectations and the scope of the work they are seeking. 

Collaborate with others - Preparing for a scope of work is a team effort. Ask your subs, vendors, and others to contribute their feedback and documentation.

Have everything ready - Assure that you have all the documents and visuals you need in an easily shareable format before you start writing your residential construction scope of work. Using a management software immensely eases the burden of this task.

How to Write a Residential Construction Scope of Work 

Be Detailed, but Concise - A residential construction scope of work should include all the necessary details to adequately cover the scope of work that will be performed. However, it should also be easy to read by everyone involved. Use simple and concise language, and avoid insider jargon that can be misunderstood by clients.

Use Visuals - Help clients visualize the work with photographs, floor plans and 3D renderings. Visuals back up the details covered in the residential scope of work, provide additional clarity and  break up the written portions.

Be Transparent - Bring everyone on board by sharing the details with your team, subs, clients, and others crucial to the project’s success. Seek their feedback and incorporate it in the scope of work. This helps the project team understand the sequence of their work, and how it interplays with the work of others, helping to avoid surprises down the road. 

Avoid Over Promising - Be as realistic as possible while setting schedules and timelines. Making too many sunny day assumptions can send you back to the residential construction scope of work, seeking adjustments when predicted deadlines are not being met.

Detail Change Request Process - Change is inevitable. Clients seek changes, supply chain issues alter the availability of products and weather does not always cooperate. Clarify how maintenance requests will be handled. Decide what documentation will be required to make changes, terms and conditions, and who will be charged what for changes to the scope of work. 

Get Signatures Besides getting the client’s approval signature, acquire written sign-off from everyone responsible for the deliverables listed in the residential construction scope of work. This includes sub contractors, designers, and more. This is a crucial step in resolving potential disagreements and avoiding confusion on who is responsible for what work.

What to Do After Your Residential Construction Scope of Work is Signed

Congratulations. The residential construction scope of work is approved, signed and ready to be put into action. But don’t put the document away just yet. Make sure you can call it up at any time on any device. This is a working document that will inform the project. Here’s what to do next:

Assign Responsibilities - Make sure everyone involved knows what to do next by assigning the responsibilities outlined in the residential construction scope of work. 

Track Scope vs. Reality - Is the work on the ground matching up with the predictions outlined in the residential construction scope of work? Compare frequently to determine if the labor, materials and timelines are keeping up with the expectations of the project scope. This allows you to correct and change the flow as needed to keep the project on track. 

Adjust as Needed - Document change orders and other adjustments as needed. This should be fairly straightforward if the residential construction scope of work already included parameters on how these changes will be handled. 

Make Your Residential Construction Scope of Work Easy to Create

A residential construction scope of work is one of the most important documents in any renovation project and taking the time to make it as easy as possible to create and replicate will pay off in the long run.  

Sign up for a free trial to learn more about how Houzz Pro all-in-one management software helps renovation pros streamline client communication, nurture leads and share files. Taming these tasks makes running a business more efficient and is especially helpful when creating the kind of residential construction scope of work that helps make projects run smoothly

The information contained in this article should not be relied upon as legal, business or tax advice. We encourage you to seek guidance from your legal counsel, business adviser or tax specialist regarding how this sample interior design contract might or might not apply specifically to your business.