Scope of Work

The scope of work is the central document in the construction industry that describes all work and supplies to be provided for a construction project in a complete, unambiguous, and exhaustive manner. It forms the basis for soliciting bids, concluding contracts, and subsequent billing. An incomplete or contradictory scope of work is one of the most common causes of change orders, cost overruns, and construction disputes.

Types of Specifications

The VOB/A (§ 7) distinguishes between two basic types:

• Bill of Quantities (BQ, itemized description): A complete list of all work items with quantities and units; bidders price each item → basis for quantity comparisons and change order management
• Functional scope of work: The contractor is provided with a description of the desired outcome (function, quality) and decides independently on the method of execution and resources-typical for general contractor agreements and design-build projects

The choice of form has a significant impact on the project’s risk profile. In the case of the bill of quantities, the client bears the quantity risk (incorrect quantities lead to change orders), while the contractor bears the execution risk. In the case of the functional scope of work, the contractor bears both risks-which generally leads to higher bid prices, as they factor in a risk premium.

Structure of a Bill of Quantities

A structured Bill of Quantities (BoQ) in accordance with VOB/C is divided into:

1. General Technical Contract Conditions (ATV) - serve as the basis unless otherwise agreed
2. Technical Preliminary Remarks - project-specific additions and restrictions
3. Item Numbers (OZ) / Items - each service item with a number, short text, long text, unit, quantity, and unit price

Today, digital specifications are created using AVA software (tendering, awarding, billing), which automatically enables quantity calculations, price lists, and change order management. Widely used systems include ORCA AVA, G&W AVA, and RIB iTWO-standards employed in particular by architectural firms and general contractors.

Common Errors and Their Consequences

• Incomplete long text: Bidders interpret unclear descriptions differently → bids are not comparable
• Incorrect quantity determination: Quantities that are too low lead to change order bids that the client can hardly refuse
• Contradictions between specifications and drawings: In case of doubt, the technically more sensible solution applies; disputes are inevitable
• Missing quality specifications: “Floor tiles, suitable” instead of “Porcelain tile, R10, minimum size 30×30 cm” opens the door to substandard workmanship
• Missing ancillary services: Waste disposal, site setup, and cleaning are often overlooked and then appear as costly change orders

Preventing Change Orders Through Precise Description

The greatest economic significance of the scope of work lies in preventing change orders. Change orders-that is, additional services for which compensation is paid but which were not included in the original scope of work-are one of the most common cost drivers in construction projects. The Federal Court of Justice (BGH) has consistently ruled that contractors are entitled to adjusted compensation in the event of genuine additional quantities or modified services. To prevent this, the scope of work must be described completely and unambiguously-and the quantity survey must be carried out carefully. An experienced architect or project manager who takes the scope of work seriously as a planning task can significantly reduce the potential for cost overruns.

Practical Tip for Property Owners in Nuremberg and Franconia

Private builders in Nuremberg often hire contractors without a written scope of work-running the risk of ending up in a dispute over the scope of services. This is particularly problematic during renovations of Wilhelminian-style buildings in Gostenhof, St. Johannis, or Steinbühl, where unforeseen issues (old pipes, mold, insufficient load-bearing capacity) frequently arise and the scope of work remains unclear.

We recommend creating a brief written scope of work-even for small renovations (bathrooms, kitchens)-and attaching it to the quote. For medium-sized projects, a structured scope of work with detailed descriptions should be created. Architectural firms and experienced trade coordinators from the Nuremberg region can help create practical descriptions even for smaller projects, thereby avoiding future disputes.

Frequently Asked Questions

Who is responsible for creating the scope of work?

When building with an architect, the architect takes on the task of creating the scope of work (HOAI Service Phase 6 - Preparation for Award). In a general contractor agreement, the general contractor prepares the functional scope of work and submits it to the client for review. In the case of a direct contract with a tradesperson, the responsibility lies with the client-those who cut corners here risk disputes over the scope of work.

As the client, can I make changes to the scope of work after the fact?

Yes, but any change made after the contract is signed constitutes an amendment that will be repriced. Requests for changes during construction are more expensive than those made during the planning phase - therefore, it is important to describe the scope as completely as possible before the contract is awarded. According to Section 650b of the German Civil Code (BGB), the contractor is entitled to a reasonable adjustment of the remuneration if the client orders a change in services.

What is the difference between a scope of work and a bill of quantities?

The scope of work is the umbrella term for all documents that define the scope of services. The bill of quantities is the most common concrete form of the scope of work in the German construction industry-a detailed itemized list with quantities and units. A functional scope of work, on the other hand, is a form without specific items or quantities, in which only the desired result is specified.

How detailed must a scope of work be?

The more detailed, the better-with a view to comparing bids and preventing change orders. The minimum standard is as follows: each individual service item (material, method, quality) should be described in such a way that an unknown bidder can prepare a mathematically correct bid without having to ask the client for clarification. Short descriptions are sufficient for small projects; for complex construction projects, detailed descriptions with quality characteristics and technical requirements are mandatory.

What role does the scope of work play in legal disputes?

In the event of a construction lawsuit, the scope of work is the central piece of evidence regarding the scope of the contractually owed services. Courts interpret the scope of work objectively-the decisive factor is how a reasonable, knowledgeable contractor would have understood it at the time the contract was concluded. Unclear or incomplete descriptions generally work to the client’s disadvantage, as they are the ones who defined the scope of work. The Nuremberg Higher Regional Court has confirmed the Federal Court of Justice’s principles regarding the interpretation of scope of work in various rulings: If the scope of work does not contain an explicit provision regarding a service that, according to generally accepted technical standards, is essential for complete completion, the contractor is nevertheless obligated to provide it-unless the price does not reflect this scope. For private builders and commercial clients in the region, we recommend clarifying contentious issues as soon as the bid is received and resolving ambiguities in writing before placing the order, rather than leaving them to the judge.

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