Why extra work becomes disputed
Extra work often becomes disputed when the contractor and customer remember the conversation differently. The risk grows when the changed scope, price, and schedule impact are not documented before the work begins.
- Verbal authorization
- Scope ambiguity
- Price not documented
- Schedule impact not documented
- Scattered text messages
Worked fictional example
This example uses fictional numbers to show the math. It is not an industry benchmark and should not be treated as a prediction.
| Extra-work requests per month | 12 |
|---|---|
| Average request value | $1,250.00 |
| Started before written approval | 40% |
| Later disputed | 25% |
| Average write-off or discount | 50% |
| Administrative time per dispute | 90 minutes |
| Owner/admin hourly cost | $60.00 |
| Active months | 12 |
| Annual extra-work request count | 144 |
| Annual extra-work value | $180,000.00 |
| Value started before approval | $72,000.00 |
| Estimated disputed request count | 14.4 |
| Estimated disputed value | $18,000.00 |
| Estimated write-offs or discounts | $9,000.00 |
| Estimated dispute-administration cost | $1,296.00 |
| Combined estimated annual exposure | $10,296.00 |
| Monthly exposure equivalent | $858.00 |
What written extra-work approval should document
A written approval should make the customer response clear before the work begins. The correct form and process depend on the contract and applicable law.
- Changed scope
- Price
- Schedule impact
- Customer response
- Date and time
Limitations
Contracts differ, local laws differ, and emergency-work procedures differ. This calculator estimates exposure based on your assumptions; it does not determine legal entitlement or guarantee collection.