A homeowner contracts for $45,000 in renovations but the contractor performs $52,000 in additional work without written authorization. Under Tennessee residential contractor law, what amount can the contractor legally collect?
Correct Answer
A) $45,000 only
Tennessee law requires written authorization for additional work beyond the original contract. Without proper authorization, the contractor can only collect the original contract amount.
Why This Is the Correct Answer
Tennessee residential contractor law strictly requires written authorization for any additional work beyond the original contract amount. When a contractor performs $7,000 in unauthorized additional work, they forfeit the right to collect payment for that extra work, regardless of its quality or necessity. The contractor can only legally collect the original contracted amount of $45,000, as this was the only work properly authorized in writing.
Why the Other Options Are Wrong
Option B: $49,500 (original plus 10% change order allowance)
Tennessee law does not provide a 10% change order allowance for unauthorized work. This option incorrectly suggests there's an automatic buffer allowing contractors to exceed the contract amount by 10% without written authorization. The state requires explicit written consent for any additional work, regardless of percentage.
Option C: $47,000 (original plus 10% emergency provision)
There is no 10% emergency provision in Tennessee residential contractor law that allows unauthorized additional work. This option misapplies emergency concepts that might exist in other contexts. Even emergency situations require proper documentation and homeowner consent for additional compensation beyond the original contract.
Option D: $52,000 if the work was necessary and beneficial
Even if additional work was necessary and beneficial to the homeowner, Tennessee law does not allow contractors to collect payment for unauthorized work. The necessity or quality of the work is irrelevant without proper written authorization. This protects homeowners from contractors who might perform unwanted additional work and demand payment.
Memory Technique
Remember 'Written or Wasted' - in Tennessee, any additional work without written authorization means the contractor has wasted their effort and cannot collect beyond the original contract amount.
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