The project started at 15% margin. It's finishing at 5%. Where did the money go?
Scope creep. Death by a thousand small additions that nobody tracked until it was too late.
Here's how to catch it before it buries you.
How Scope Creep Happens
Scope creep isn't dramatic. It's gradual:
"While you're there..."
- "Can you add one more outlet?"
- "Can you run that duct over here instead?"
- "Can you connect this too?"
Direction without documentation:
- Verbal instructions from the GC
- Field changes directed by the architect
- Coordinator decisions that add scope
Assumption drift:
- "I thought you were including that"
- "The last project you did this"
- "It's industry standard"
Gray area work:
- Work that's arguably in your scope
- Work nobody explicitly excluded
- Work that falls between trades
Each item is small. Together, they're profit killers.
The Cost of Untracked Creep
A few examples:
| "Small" Addition | Actual Cost |
|---|---|
| 10 extra outlets | $2,500 |
| Route duct around beam | $1,800 |
| Add access door | $450 |
| Move diffuser locations (5) | $1,200 |
| Extend pipe to new location | $800 |
Total: $6,750 on "small" items that nobody documented.
Now multiply across the project. Scope creep of 5-10% of contract value isn't unusual.
Building a Creep Detection System
Layer 1: The Weekly Scope Check
Every week, the PM asks:
- Field team: "Any work this week that wasn't on the original plans?"
- Foreman: "Any direction from the GC we should document?"
- Yourself: "Any assumptions I'm carrying that might not be in the contract?"
This surfaces issues early, when documentation is fresh.
Layer 2: The Direction Log
Every directive from the GC or owner goes in a log:
| Date | From | Directive | In Scope? | Action |
|---|---|---|---|---|
| 1/15 | GC Supt | Move diffuser per arch markup | No | CO drafted |
| 1/16 | GC PM | Add outlet in break room | Maybe | RFI submitted |
| 1/18 | Inspector | Relocate panel per code | Yes | Doc in file |
"In Scope?" requires a quick check against contract documents. If uncertain, it goes to the RFI/clarification process.
Layer 3: The Daily Awareness
Foremen need to recognize creep in the moment:
Train them to ask:
- "Is this on our drawings?"
- "Is this in our contract?"
- "Did we quote this?"
Train them to document:
- Photo before and after
- Note who gave the direction
- Note the date and time
Train them to report:
- Same-day notification to PM
- Don't wait for weekly meeting
When Creep Is Discovered
If Caught Early:
- Stop the work (if possible without impacting schedule)
- Document the direction in writing
- Notify the GC that this is additional scope
- Propose resolution: pricing, T&M authorization, or formal change order
Example notification: "Per direction from [name] on [date], we have been requested to [description]. This work is not included in our contract scope per Drawing [X] and Specification [Y]. Please provide written authorization to proceed. We will track this work on a T&M basis pending change order approval."
If Caught Late:
- Document everything you can while memories are fresh
- Gather any contemporaneous evidence: photos, emails, daily reports
- Prepare change order with full backup
- Submit promptly with clear entitlement narrative
Late discovery is harder but not impossible. Documentation quality determines recovery.
The Creep-to-Change-Order Pipeline
Build a process:
Stage 1: Identification Someone notices potential extra work
Stage 2: Verification PM checks against contract—is this really extra?
Stage 3: Notification GC is notified in writing before work proceeds (when possible)
Stage 4: Tracking Work is performed and tracked (hours, materials)
Stage 5: Submission Change order submitted with full documentation
Stage 6: Resolution Negotiation and approval
Every item must go through all stages. Skipping stages creates gaps.
Gray Areas and How to Handle Them
"It's Implied"
GC says the work is implied by the contract documents.
Response: Request specific reference. If they can cite a drawing or spec, check it. If they can't, it's probably extra.
"You Did It Last Time"
GC references past project scope.
Response: Each contract stands alone. Prior projects don't modify current scope.
"It's Industry Standard"
GC claims any reasonable contractor would include this.
Response: Industry standard doesn't override contract language. Document your position in writing.
"We'll Figure It Out Later"
GC wants work to proceed without addressing scope.
Response: Confirm in writing that you're reserving claim rights. Track on T&M basis.
Using AI to Identify Potential Creep
After receiving field reports or direction:
Compare this work description to the contract scope:
Work performed: [Description from field]
Contract scope:
[Paste relevant inclusions/exclusions]
Is this work clearly within scope, clearly outside scope, or ambiguous? Explain the reasoning.
This helps PMs quickly assess whether to pursue a change.
The Weekly Creep Review
Add to your weekly project review:
Creep check:
- Any work performed without clear scope coverage?
- Any direction from GC documented?
- Any gray area items to clarify?
- Any change orders ready to submit?
- Any pending creep issues to escalate?
This keeps scope management visible instead of buried.
What's Next
Tracking creep recovers costs. Preventing creep protects relationships. The next step is building scope clarity at project start—so there are fewer gray areas that become creep opportunities.
TL;DR
- Scope creep is death by a thousand small additions—each one seems minor, together they kill margin
- Build a weekly scope check: what work this week wasn't on the original plans?
- Log every directive and check if it's in scope before proceeding
- Train foremen to recognize and document creep in the field
- When creep is discovered, notify GC in writing and track on T&M pending resolution