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Payment for Extra Work

9/24/2016

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_Before beginning a job, it is important that you carefully read the requirements of the contract governing payment for extra work and/or extra materials provided to the project. Contracts often have specific notice requirements regarding claims for extra work along with a requirement that you obtain a written order from the other contracting party prior to starting any extra work. North Carolina courts will enforce both the notice requirement and the requirement of a written change order. This means that if you did not provide the required notice or failed to obtain a written change order, the courts may not require payment for the additional work even though all of the parties may have been aware of the claim for extra work from the moment the claim arose.

In sum, to get paid for extra work you have to comply with the contract. If the contract requires written notice, verbal notice of a claim for extra work does not comply with the contract’s requirements. If the contract requires a signed change order before you start the additional work, wait until you have a signed change order.

But what if the contract is silent? Then the issue becomes a matter of proof. With the ease of email in mobile phones, if someone tells you to do something extra on a job, shoot them an email and ask them to just reply and confirm. Be sure to include the material information as to scope of work and payment. This type of proof can avoid people forgetting verbal agreements to pay. This practice may keep you out of court, but if you end up in a dispute, this kind of proof can help you win.

Finally, in order to limit disputes over the value of the additional work, keep detailed records of all of your expenses (labor, equipment and materials). It is also a good idea to keep the other party well advised as to the cost of the extra work. Your chances of payment without a dispute are greater if the other party isn’t surprised by the cost of the extra work.

This article is meant as general knowledge and not meant to substitute for legal advice on specific issues. If you have a question, please call Doug McClanahan at 861-0693.
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    Doug McClanahan

    _Doug has been an active member of the North Carolina Bar Association since 1995. He has been the Technology Chair of Construction Section and a member of the Litigation Section. Currently he volunteers in the Law Related Education Committee of the NC Bar Association. Doug volunteers with a number of other local and state programs including Lunch with a Lawyer, Mentoring, and Job Shadowing. He has been published in various trade and Bar Association publications and has spoken at continuing education functions for accountants, engineers, paralegals and attorneys.

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