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Scope of Works

What is the scope of works and why is it needed?

The scope of works is a document that plays an important role in us deciding what damage to your property is covered by your insurance policy.

The scope of works is a list of home building repair works for your insurance claim. It can help identify and outline what repair or rebuilding work is needed to fix things. It may also be used to obtain repair quotes.

The scope of works outlines the works to be completed by as part of a home building insurance claim. We may need to prepare a scope of works when your home building insurance claim is for a higher value, involves major damage, or is otherwise complex to fix because of the need to coordinate multiple trades or contractors.

The process for developing a scope of works may vary depending on your individual circumstances.

Developing a scope of works can involve several discussions, and even the development of several versions before it is complete. This is to make sure it accurately reflects the extent of work required to complete repairs or rebuild your property.

As you best know your property, you can point out subtle damage caused by the event that our loss adjustor (or other person preparing the scope of works) may not otherwise notice when they visit your property.

The initial scope of works may need to be reassessed once repairs have commenced, if new information becomes available about the damage that needs to be fixed – see variations.

There may be circumstances when specific repairs are not included in a scope of works. This may be because there is damage to your property that is not covered by your insurance policy.

It is important you take the time to properly understand the scope of works.

What is included in the scope of works?

  • Works to be completed by the contractor or their sub-contractor
  • Stages of the works (i.e. demolition, a survey of the site, installation, completion)
  • Description of the tasks involved in carrying out the work
  • Deliverables at each stage of the works

Example:

  • Scope of works for a kitchen renovation:
  • Demolition or removal of existing cabinetry and tiling
  • Installation of new cabinetry
  • Supplying and installing a new benchtop
  • Painting the walls

The scope of works is usually accompanied by a specification of materials and finishes being used.

Variations to the scope of works:

  • Anything that is not included in the scope of works may be the subject of a variation under the contract and may occur in an instance where:
  • You direct a variation where your preferences or requirements for the works change. (e.g. installing a stone benchtop instead of a laminate)
  • The contractor identifies that there is an error or item missing from the scope of works or they come across additional work that was not anticipated at the start of the project.

Negative variation – where an item or part of the scope of works is deleted or omitted. Clear & defined scope of works reduces the likelihood of variations allowing for timely completion.

Does the scope of works need to be signed?

No, the scope of works does not need to be signed.

Further Questions?

If you have any further questions in relation to a scope of works, please contact our office on 1300 552 662 or email dsh@dva.gov.au
 

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