The Classic of Construction Disputes: "Let's Get It Done, We'll Talk Money Later!"

In construction and renovation work, it is common that the total scope of work may not be precisely known when the contract is concluded. During the course of work, it may become clear that more work needs to be done than originally planned to achieve the desired goal. This raises the question of whether the additional work is covered by the original contract price or whether it is extra work for which a separate payment must be agreed upon?

"A typical point of dispute is when verbal agreements are made in the style of 'do the work, we'll discuss payment later'. Since the budget is binding according to law, disputes easily arise from whether the work was covered by the original contract price or whether additional compensation must be paid," describes Henri Torop, an attorney at law at the law firm RASK.

In practice, it is common for additional work to not be documented in writing or for necessary evidence to not be collected. However, if additional work has been done but there is no clear overview of who did what, it can be difficult later to determine whether it was part of the original contract or additional work.

According to Torop, random correspondence and messages are often subject to multiple interpretations, and the parties may understand differently whether an agreement was reached regarding additional work, what exactly was agreed upon, and at what price.

"During the course of work, problems may arise that cannot be foreseen initially, such as mold in the walls or unexpectedly poor condition of the plumbing. If the contractor does not immediately notify in writing of such discoveries and the parties do not separately agree on additional work, a dispute arises over whether the contractor had the right to demand additional compensation or not," he explains. One classic source of dispute is also the fact that additional work often extends the deadline for completion of the construction work.

How to reduce the risk of disputes?

To mitigate risks, Viviana Vilter, an attorney at the law firm RASK, recommends always concluding a written agreement regarding additional work: "It should describe the content, scope and price of the work. Even a simple email with the mentioned terms, to which the other party responds in writing 'agreed', makes it possible to avoid later disputes."

Additionally, the employer should not begin additional work and the client should not demand the start of work before a written agreement is formalized. "Work handover and acceptance acts and other documents should be used. Even a simple list of work with the date and signature helps avoid future disputes," explains Vilter.

Therefore, the safest thing is to keep photos, a work diary, measurements and correspondence, meaning document everything necessary. Similarly, when it comes to additional work, the extension of the deadline should also be agreed upon in writing if the additional work affects the completion date of the work.

According to the attorneys, an agreement on additional work means that both parties have expressed their consent on the same terms for performing the additional work. "Both parties must ensure that they have evidence of the conclusion of the agreement. This helps prevent disputes or, if necessary, protect one's rights," emphasize the legal advisors.

If a dispute over additional work has already arisen, negotiations should be initiated and a compromise should be sought if possible. "If no agreement is reached, you can order an independent expert's assessment regarding the necessity, scope and price of the work. This helps the parties reach a common understanding. Court proceedings could rather be left as a last resort," add the attorneys from RASK.