A New Contract for a Takeover Project: Scope, Exclusions, Provisional Sums and Concealed Conditions

Attach the verified scope

The contract should incorporate current drawings, specifications, issue register, incomplete-work schedule, accepted defect scope and owner-funded changes. Each document requires a revision and order of precedence.

State whether investigation, access, testing, certification and reinstatement are included. General wording such as complete all remaining work invites disagreement.

Define responsibility for existing work

Record which components were installed by the first builder and the extent to which the replacement builder is relying on them. The contract should explain inspection obligations, exclusions and what acceptance occurs when new work connects to old work.

An exclusion should not be so broad that no one is responsible for delivering a functional final system. Interfaces need an agreed method.

Use provisional sums honestly

Concealed work may be impossible to quantify before opening-up. A provisional sum should state the assumed quantity, rate or scope, evidence required for adjustment and approval process. It should not be used to make an unrealistic contract total appear competitive.

Include schedule-of-rate mechanisms for likely discoveries and emergency protection.

Align programme and payment with recovery reality

Set commencement conditions such as site possession, legal termination, insurer authority, new HBCF certificate, lender approval and certifier review. Progress claims should reflect measurable completed work and separate approved variations.

Include hold points for inspection and evidence before concealment. Clarify ownership of reports, photographs, certificates and project records.

Practical takeaway: The contract should make uncertainty visible and manageable. Clear boundaries protect the owner, replacement builder and insurer from later responsibility disputes.

How ARK Houses can help

ARK Houses uses a recovery contract that identifies existing work, scope revisions, concealed-condition mechanisms, hold points and responsibility interfaces. This gives the owner a workable path when certainty cannot honestly be provided before opening-up.

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