A residential contractor discovers structural damage during renovation that wasn't in the original scope. The additional work will cost $8,500. What does Tennessee law require?
Correct Answer
B) Stop work until a written change order is signed
Tennessee residential contractor requirements mandate written change orders for additional work outside the original contract scope.
Why This Is the Correct Answer
Tennessee residential contractor law mandates a written change order signed by both parties before any work outside the original contract scope begins. This protects both the homeowner and contractor by documenting authorization and agreed pricing.
Why the Other Options Are Wrong
Option A: Complete emergency stabilization only
Performing emergency stabilization only and stopping there could leave the structure unsafe and does not fulfill the contractor's obligation to address discovered damage through proper channels. It also does not comply with the change-order requirement.
Option C: Proceed with repairs and bill the homeowner
Proceeding with repairs and billing the homeowner afterward violates Tennessee's requirement for a written change order before additional work begins. This approach exposes the contractor to non-payment disputes and license complaints.
Option D: Document the damage and continue with original scope
Documenting the damage and continuing with the original scope is inadequate β it ignores the structural issue and does not initiate the required change-order process.
Memory Technique
Scope change = Stop, Write, Sign. Any time work falls outside the original contract: Stop work, Write a change order, get a Signature β then proceed.
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A Tennessee contractor has 12 employees with a total annual payroll of $480,000. If the workers' compensation rate for general construction is $8.50 per $100 of payroll, what is the annual premium?
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