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How scope creep exposes construction projects to risks

On Behalf of | Jan 14, 2025 | Construction Law |

Scope creep is a common issue in construction projects. It refers to the gradual expansion of a project’s scope beyond the original plan, often without proper approval or adjustments to the expected budget and timeline.

Imagine you are hired to build a residential home with a set of plans that include three bedrooms and two bathrooms. Halfway through construction, the homeowner decides they want an extra room added and some changes to the kitchen’s layout. If these changes aren’t formally approved, accommodating them may delay the project and lead to other complications.

The financial and legal risks

One of the most immediate consequences of scope creep is its impact on the budget. When the scope of work increases, so do the costs. It means extra material, labor and more time to complete the project. The project can quickly spiral out of control financially, and you may find yourself footing the bill or entering into disputes about who’s responsible for the extra costs involved.

Scope creep also exposes you to legal issues. Disagreements can lead to breach of contract claims or lawsuits. Additionally, improperly managed scope creep can lead to violations of local building codes, safety regulations or other legal requirements, potentially causing delays or fines.

Take proactive action

The key to avoiding such risks is to manage scope creep effectively. Always have a clear, written agreement about the project scope from the start and ensure any changes are well-documented, approved by all parties and reflected in the budget and timeline. Open communication is also essential to staying on track and minimizing the risks of scope creep.

Seeking legal guidance early in the process can help prevent such issues and ensure the project stays within the agreed-upon scope, budget and timeline. It can also protect your interests if you encounter such challenges along the way.