CSLB Contractor's Law & Business Practice Exam

If an owner decides to have additional work done after a job is completed, what should the contractor do?

1. Continue without a new contract

2. Document the additional work only

3. Write a new contract

4. Informally agree on the changes

The correct answer is: Write a new contract

When an owner requests additional work after the completion of a job, the proper course of action for the contractor is to write a new contract for the additional work. This ensures that both parties have a clear understanding of the scope of the new work, costs, and timeline, allowing for a legally binding agreement that protects the interests of both the contractor and the owner. A new contract is crucial because it clearly outlines the specifics of the additional work, including any changes in payment or deadlines. Without a formal written agreement, there can be misunderstandings regarding the extent of the work to be done and the corresponding compensation. Documenting the work informally or without a new contract could lead to disputes if expectations differ or if there are disagreements about the cost and payment terms. In the construction industry, it is essential to maintain a clear and formal record of all agreements to mitigate risks and ensure compliance with legal and regulatory obligations. Thus, a new contract serves as an important safeguard for both the contractor and the property owner.