A scope of work isn't the same as a contract, and any contractor telling you differently wants to deceive you

This is the time of year when homeowners may be zeroing in on hiring a general contractor to complete that long-desired kitchen or bathroom remodel before the holidays.

As you interview your contractor candidates, and start dialing in on one, here's a phrase you might hear that should send up a big red flag: "I don't do contracts. I just give you a scope of work. It's basically the same thing."

Well no, it isn't, by a long shot. A contractor who tries to convince you otherwise is actually explaining exactly how he plans to avoid being held to anything. The difference between a scope of work and a contract matters more than you may realize until it's too late.

Two documents, two different jobs

"Scope-only" contractors are angling for a blank check with your name on it. A scope of work is built to describe your bathroom project, not to protect the people paying for one.

Think of it this way: A contract spells out what happens if. What happens if he's late? What happens if you've paid and the work stalls? What happens if a sub doesn't get paid and a lien shows up on your title? What happens if either side wants out? It establishes the parties' legal and financial obligations.

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A scope of work describes what the contractor will provide: the materials, brands, model numbers, square footage, and finish level. A good scope is detailed and includes instructions.

Some contractors choose to conflate elements from both a scope and a contract, creating a hybrid document. They present you with a "scope-plus-some-contract-terms" as if that combination equals a contract. They might insert a payment schedule into a scope (often front-loaded, with up to 60 percent due before their first truck ever shows up); include vague language about change orders; or "forget" to include tax in the bid.

Some problems in a contractor's scope are obvious. Beware vague language with no breakdowns, like "flooring TBD," "purchase and install cabinets," or even a lump "kitchen remodel, $48,000."

Often, though, problems hide inside a scope proposal that appears to be organized. For example, an allowance schedule can quote precise-looking numbers for flooring, tile, fixtures and so on. But the contractor has set them so low they cover only the cheapest available option. You don't find out you're over budget until you've already picked the finishes you actually want. By then, if you've already signed, you're committed to paying the difference.

Another red flag is if you are given an itemized list (Demo Labor, Framing, Plumbing Trim, Drywall, Flooring Install, etc.) that names categories and gives brief descriptions, but no specific dollar figures. Perhaps the grand total is the only place where there's a specific dollar figure. You aren't given the information you need to verify how $150,000 allocates across trades. That means you can't tell if drywall or electrical got lowballed.

One of my favorites in "scope-plus-some-contract-terms" papers belongs in the Museum of Artful Ambiguity: "Make Everything Beautiful: Fix or touch up any items that need to be. Replace any damaged items."

When a problem arises, the crooked contractor already knows what he will say: It wasn't in the scope. That work wasn't specified. There isn't a written deadline. You agreed to the scope. We didn't break it, it came that way.

A real contract usually includes a scope of work, attached as an exhibit. It's a part of a contract. A contractor handing you only that part and calling it the whole shebang is intentionally omitting the parts of the deal that can protect you.

Don't be led to believe a scope substitutes for a contract. It is thin, informal documentation that's easy for a contractor to walk away from and hard to enforce.

This dodge doesn't fly elsewhere

California requires a written contract for any home improvement job over $500, and it's pretty specific.

For example, down payments cap at $1,000, or 10 percent of the project's price, whichever is less. Progress payments have to represent the actual value of work completed in each phase, not a percentage tied to a vague milestone like "usually when cabinets are installed." Change orders only count if they're written and signed before the extra work starts. And all lien releases have to be furnished before the next payment is accepted.

California's home improvement law requires the contract to state a total price in dollars and cents. So an open-ended time-and-materials or cost-plus arrangement, one that never locks in a total, runs afoul of the law. Noncompliance can make the contract unenforceable and put the contractor's license at risk.

New York requires a written contract with lien warnings, cancellation rights, and a defined payment structure. It also goes further than Washington on enforcement. A homeowner can rescind the deal and recover damages if the contractor misleads them in the contract. On top of that, the state attorney general can bring legal action.

None of that exists here.

Washington doesn't mandate what has to be inside a construction contract at all. A contractor is free to only ever give you a scope of work with a payment schedule stapled to it. Olympia isn't protecting you.

You need to protect yourself, in writing, with a contract, before money changes hands.

A scope of work tells you what a contractor says he's going to build. Only a contract tells you what you're entitled to if he doesn't.

If you've run into this, or you're dealing with it right now, share your experience in the comments.

QUICK SUGGESTIONS:

• Get a complete and detailed payment schedule up front. Get it tied to inspected milestones, not just calendar dates.
• Require a timeline that includes a start date and completion date, and one that spells out the consequence if either date slips.
• Get warranty terms in writing. What's covered, and for how long, if something fails.
• Address termination rights. If the contractor stops showing up, the contract should spell out what you're owed and how you collect it.
• Ask exactly how and when change orders get priced. Insist that this happens before the work starts.
• Require per-line pricing, not a lump sum at the bottom of a page, so you can see where your money is actually going.
• Ask for lien releases from subcontractors and suppliers with every draw, or request joint checks made out to you and the sub directly, so you have proof they were actually paid with your money before you release the next payment.