During a project, the owner requests additional work valued at $35,000. The contractor verbally agrees and completes the work, but no written change order was executed. What is the contractor's position for payment?
Correct Answer
B) May have difficulty collecting without proper documentation
While the contractor may still have legal remedies for payment, the lack of a written change order significantly complicates collection efforts. Most contracts require written change orders for additional work, and proper documentation is essential for payment.
Why This Is the Correct Answer
Option B correctly identifies that while the contractor performed legitimate additional work and may have legal remedies available, the absence of a written change order creates significant documentation challenges that complicate payment collection. Most construction contracts specifically require written change orders for additional work to be enforceable. Without proper documentation, the contractor faces an uphill battle proving the scope, value, and authorization of the work, even though they may still pursue payment through legal channels such as quantum meruit or unjust enrichment claims.
Why the Other Options Are Wrong
Option A: Automatically entitled to full payment since work was completed
This option is incorrect because completion of work alone does not automatically entitle a contractor to payment, especially when proper contract procedures weren't followed. The lack of written documentation means the contractor cannot simply demand payment without potentially facing disputes about authorization, scope, or pricing.
Option C: Can only collect material costs, not labor
This option is incorrect because there is no legal principle that limits recovery to only material costs when written change orders are missing. If the contractor can prove their case, they would be entitled to reasonable compensation for all work performed, including both materials and labor.
Option D: Must wait until project completion to request payment
This option is incorrect because the timing of payment requests is not the primary issue here. The contractor can request payment for additional work at any appropriate time during the project, but the main problem is the lack of proper documentation, not the timing of the payment request.
Memory Technique
Think 'CYA Documentation' - Cover Your Assets with proper paperwork. Verbal agreements = Vulnerable position for payment collection.
Reference Hint
Florida Building Code - Chapter 1, Contract Administration section, or Florida Statutes Chapter 713 regarding construction liens and payment procedures
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