1. Does the Contractor’s Extra Work Fall Outside the Original Contract?
A charge labeled “extra work” may concern an addition, an allowance adjustment, or work already included in the price. Start with the contractor’s original obligations. This guide addresses private projects under California jurisdiction. Public works and federal projects follow different statutory requirements.
Compare the Scope, Plans, and Allowances
Read the construction contract with incorporated drawings, specifications, exclusions, and amendments. Check which document controls conflicting terms. Pricing also matters: a fixed price, cost-plus arrangement, and allowance allocate costs differently. For an allowance adjustment, compare the budgeted item with the actual selection, documented cost, and agreed markup.
Identify Who Approved Price and Schedule Changes
Match the change request to its approval, price, and schedule adjustment. Confirm whether the person giving instructions could authorize added costs. A technical response from an architect does not necessarily approve a price increase. Covered home improvement contracts have specific written change-order requirements concerning scope, price, and payment or completion effects. Missing signatures do not automatically defeat every claim, however. Applicable law, contract terms, and the parties’ conduct still matter.
2. Which Records Show Who Caused the Construction Delay?
Late completion alone does not establish responsibility. Compare the agreed schedule with records of owner decisions, contractor performance, deliveries, and inspections. Identify which events affected completion and whether their effects overlapped.
Trace Events against the Project Schedule
Preserve the baseline schedule, dated updates, daily reports, delivery notices, and correspondence. The critical path is the sequence of activities controlling completion. A late delivery may cause no completion delay if the item was not yet needed, while an unanswered approval request may hold up dependent work. Overlapping causes may require expert scheduling analysis.
Separate Time Extensions from Compensation
The contract may permit more time without additional payment. Compare delay notices, extension requests, and responses before assessing costs or deducting liquidated damages, meaning an agreed amount for specified delay. Approved extensions, owner-caused events, contractual limits, and enforceability can affect the result. A construction dispute requires evidence connecting the event, schedule impact, and claimed loss.
3. How Can Owners Check the Amount Being Claimed?
Approval of added work does not establish that every associated charge is payable. Check quantities, rates, markups, credits, and prior payments against the agreed pricing. Separate additional work, delay costs, and corrective work before comparing the totals.
Reconcile Bills, Change Orders, and Payments
Use a ledger showing the original price, approved changes, disputed amounts, credits, and payments. Match each charge to its supporting record and check for costs appearing in both change orders and later delay claims.
| Claimed Amount | Supporting Records | Key Question |
|---|---|---|
| Extra work | Approvals, time records, invoices | Was it outside the original scope? |
| Delay costs | Schedules, daily reports, rental records | Did the asserted delay cause the expense? |
| Allowance adjustment | Allowance, selections, purchase records | Does the agreed calculation support it? |
| Unpaid balance | Progress bills, credits, payments | Has any portion already been paid? |
Extra work
- Supporting RecordsApprovals, time records, invoices
- Key QuestionWas it outside the original scope?
Delay costs
- Supporting RecordsSchedules, daily reports, rental records
- Key QuestionDid the asserted delay cause the expense?
Allowance adjustment
- Supporting RecordsAllowance, selections, purchase records
- Key QuestionDoes the agreed calculation support it?
Unpaid balance
- Supporting RecordsProgress bills, credits, payments
- Key QuestionHas any portion already been paid?
Keep Defect Repairs Separate
A construction defect concerns deficient work, design, or materials. Correcting deficient original work does not become an owner-funded addition simply because the contractor invoices it separately. Distinguish repairs from requested upgrades using specifications, photographs, inspection findings, and estimates. Preserve evidence before repairs alter the condition, document any resulting delay separately, and avoid counting the same loss twice.
4. What Should Owners Check before Responding to a Payment Claim?
Identify disputed items and reasons while checking notice and payment obligations. Disputing one charge does not necessarily justify withholding unrelated amounts. An invoice, formal statutory claim, and recorded mechanics lien require different responses.
Check Contract Notices and Statutory Procedures
Civil Code § 8850 covers qualifying private-work contracts entered into on or after January 1, 2026, excluding residential projects that are not mixed use and do not exceed four stories. For qualifying claims sent by registered or certified mail with return receipt requested, owners generally must identify disputed and undisputed portions within 30 days, subject to a written extension agreement. Undisputed portions generally require payment within 60 days after that statement. Further conference and mediation requirements may follow. Silence generally means denial, not approval, and does not eliminate statutory obligations.
Distinguish Payment Demands from Mechanics Liens
An invoice requests payment, a preliminary notice preserves potential lien rights, and a recorded mechanics lien asserts a claim against the property. None alone proves the amount owed. Check the claimant, work, notices, payment history, and releases. Paying the direct contractor does not necessarily eliminate unpaid subcontractor or supplier lien rights. A construction attorney reviewing construction payments can assess these issues alongside the disputed charges and applicable deadlines.
15 Sep, 2026
