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Contractor glossary

Scope of work

Updated

Definition

A scope of work is the written description of exactly what a job includes and what it excludes: the tasks, materials, quantities, locations and standards of finish. It's the part of an estimate or contract that defines what the price buys, so anything outside it needs a change order.

Also called: SOW, Job scope, Work description

Why it matters

The price on an estimate means nothing without the scope next to it. "Replace roof, $14,000" leaves the customer to imagine what's included, and they'll imagine more than you priced. A clear scope is what lets you say "that wasn't in the job" without starting an argument, and what lets another crew show up and do the work without calling you.

Customers are told to look for it. The FTC tells homeowners that a written estimate should describe the work, the materials, the completion date and the price 1. Some states put scope requirements into law. Massachusetts, for example, requires home improvement contracts over $1,000 to be in writing, with a detailed description of the work and the materials to be used and the start and completion dates 2. Rules differ by state, so check with your state's licensing board or attorney general's office.

What goes in it

  • Tasks, in the order they'll happen: remove, install, connect, test, clean up.
  • Materials by brand, model or spec, with quantities. "Standard materials" isn't a spec.
  • Locations: which rooms, which walls, which side of the house.
  • Standards of finish: what "done" looks like, such as "patched and primed, ready for the customer's paint."
  • Permits and inspections, and who pulls and schedules them.
  • Cleanup and disposal, including haul-away of old equipment.
  • Exclusions, written out.
  • Assumptions the price depends on, and how you'll handle it if one turns out wrong.

Example: A vague scope reads "Install new bathroom fan, $450." A clear one reads: "Remove existing fan. Install one 80 CFM fan with humidity sensor in the same ceiling opening, ducted through the existing roof cap. Connect to the existing switch. Excludes drywall repair beyond the fan opening and any roof work. Assumes the existing duct is intact; if it isn't, we'll stop and get written approval before replacing it." When the duct turns out to be crushed, the second version makes the fix a simple change order instead of an argument. The numbers are made up for illustration.

Common mistakes

  • Leaving exclusions unsaid. "Drywall patching not included" heads off a dispute. Silence starts one.
  • Scope by conversation. What was said at the kitchen table isn't the scope. If it matters, write it down.
  • Copying the last job's scope. Every house is different. Edit it to match this one, or it will promise work you didn't price.
  • Doing extras for free and unrecorded. Small favors outside the scope quietly become part of it. If you do one, write "no charge" on the job record.

How it connects

The scope is the baseline everything else is measured against. A change order amends it, a punch list checks the finished work against it, and good-better-best pricing gives each option its own scope. When you're the one pricing a scope someone else wrote, as on a bid, read it line by line and price exactly what it says. How to handle change orders covers what to do when the work moves outside it.

Go deeper

GuideHow to Handle Change OrdersA contractor's process for change orders: the contract clause, what to say on site, what the form must include, how to price changes and how to bill them.Plumbing guideHow to Write a Plumbing EstimateHow to write a plumbing estimate: fixture-by-fixture scope, allowances, permits, code items, exclusions, camera findings, repipe options and changes.Roofing guideHow to Write a Roofing EstimateWhat goes in a roofing estimate: squares with pitch and waste, line items adjusters expect, code items, decking allowances, photos, warranties and payment terms.HVAC guideHow to Write an HVAC EstimateHow to write HVAC repair estimates and replacement proposals: Manual J sizing, AHRI certificates, SEER2 ratings, line items, warranties and options.
EstimateAn estimate is a contractor's expected price for a job, based on the scope as it's understood before work starts. It tells the customer the price could change if the work turns out different, but whether it binds you depends on its wording, the customer's acceptance and your state's law.Change orderA change order is a written amendment to your contract that changes the scope of work, the price or the schedule, approved by the customer before the changed work starts. It records what changed, the added cost or credit, the new contract total and any new completion date.BidA bid is a firm price a contractor submits to win a job, usually in competition with other contractors and priced to plans, specs or a scope someone else wrote. If it's accepted, you're expected to do the work for that price on the terms of the bid.Punch listA punch list is the written list of small items still to finish or fix at the end of a job, such as touch-ups, missing trim or adjustments, that the contractor completes before the customer signs off on the work and pays the final balance.Good-better-best pricingGood-better-best pricing means presenting a customer with three options for the same job, each a complete solution at a different price, instead of a single take-it-or-leave-it number. The tiers differ in materials, features or warranty, never in whether the job is done right.DepositA deposit is a payment the customer makes before work starts, credited toward the final price. Contractors use it to cover materials bought for the job and to hold a place on the schedule. Some states limit how much a contractor can collect up front on home improvement work.

See every term in the glossary

Sources

  1. How To Avoid a Home Improvement Scam Federal Trade Commission
  2. Home Improvement Contract Requirements, Details, and Sample Language Commonwealth of Massachusetts

Rules and figures change, and many requirements vary by state and city. Check the current version of each source and your local authority before acting, and talk to a licensed professional about your specific situation.