Home renovations rarely proceed exactly as planned. Once construction begins, a contractor may discover hidden water damage, outdated electrical wiring, structural concerns, or other conditions that were not visible when the original quote was prepared. A homeowner may also decide to change the design, upgrade materials, or add new features.
In these situations, additional work may be necessary, and the contractor may reasonably expect to be paid for work that falls outside the original agreement. Problems arise, however, when a renovation company performs additional work without clearly explaining that it is outside the original quote, fails to provide a price, and later sends a substantially higher bill.
The homeowner may not have understood that a casual conversation amounted to authorization for extra work. The contractor, meanwhile, may argue that the homeowner knew about the issue, instructed the contractor to proceed, and benefited from the completed work.
When the homeowner refuses to pay, the contractor may threaten to register a builders’ lien against the property or commence a lawsuit. In these circumstances, advice from our Calgary construction lawyers at OP Lawyers LLP may help homeowners understand their rights and determine how best to respond.
The problem: when a quote becomes a larger bill
Consider the following example.
A homeowner hires a renovation company to renovate a bathroom. The contractor provides a written quote for $25,000. The quote includes demolition, plumbing, tiling, cabinetry, painting, and installation of fixtures.
After demolition begins, the contractor tells the homeowner that the existing plumbing is “not up to code.” The contractor also says that the subfloor is uneven and that additional waterproofing would be advisable. The homeowner is unfamiliar with construction and responds, “Do what needs to be done.”
The contractor performs the work but does not provide a written description of the changes, an estimate, or a revised price. At the end of the renovation, the contractor sends an invoice for $35,000 — $10,000 more than the original quote.
The homeowner disputes the extra charges, arguing that the contractor never explained that the work would cost more or obtained approval for a specific price. The contractor responds that the homeowner was informed about the problems, authorized the work, and benefited from the improvements. The contractor then threatens to register a builders’ lien.
Whether the homeowner must pay the additional $10,000 will depend on the evidence, including the original quote, communications between the parties, the nature of the work, the homeowner’s knowledge, and the parties’ conduct.
The law regarding extra renovation work
There is no automatic rule requiring a homeowner to pay every amount claimed by a contractor. Courts generally examine whether the contractor has proved that the disputed work was genuinely additional work and that the homeowner authorized it in circumstances giving rise to an obligation to pay.
In Ridge Rock Construction Ltd. v. Beckmyer Builder Ltd., 2006 ABQB 850, Hughes J. adopted a passage from Kei-Ron Holdings Ltd. v. Coquihalla Motor Inn Ltd., [1996] B.C.J. No. 1237 (S.C.). The passage provides a useful framework for determining whether payment is owing for extra work.
The court identified the following questions:
- Was the work actually “extra work,” meaning that it fell outside the scope of the original contract?
- Did the owner expressly or implicitly instruct the contractor to perform the work, or was it otherwise authorized?
- Was the owner informed, or necessarily aware, that the additional work would increase the cost?
- Did the owner waive a contractual requirement that changes be made in writing, or otherwise acquiesce in proceeding without written changes?
- Can the contractor prove these elements for each item claimed?
If the contractor proves these elements, the homeowner may be required to pay a reasonable amount for the extra work.
The same general principles were considered in Impact Painting Ltd. v. Man-Shield (Alta.) Construction Inc., 2017 ABQB 743. The important point is that a contractor cannot necessarily recover simply by proving that additional work was performed. The contractor must connect the work to the homeowner’s authorization and demonstrate why payment is legally owing.
Our Calgary construction lawyers at OP Lawyers LLP can assist homeowners in reviewing the original agreement, disputed invoices, communications, and evidence relating to alleged extras and advise on how these legal factors apply to your situation.
When a homeowner may be responsible for extra work
A homeowner may be required to pay for additional work in several circumstances.
The work was outside the original quote
The first question is whether the work was actually outside the scope of the original agreement. A quote to install cabinets may not include repairing hidden structural damage behind those cabinets. Similarly, a quote to replace flooring may not include extensive levelling of a severely uneven subfloor.
If the additional work is genuinely outside the contractor’s original obligations, it may qualify as extra work. However, the wording of the quote is important. Broad terms such as “complete renovation” or “all work necessary for completion” may create disputes about whether particular tasks were already included.
The homeowner expressly authorized the work
The clearest case arises where the homeowner directly instructs the contractor to proceed. For example, a text message stating, “Please replace the damaged wiring and let me know the cost,” may support a claim for payment.
Authorization does not always have to be documented in a formal change order. It may be established through emails, text messages, site instructions, meetings, or other communications. Nevertheless, the contractor should still be able to prove what was authorized and, ideally, the price or method used to calculate the cost.
The homeowner implicitly authorized the work
Authorization may also be implied from the homeowner’s conduct. A homeowner who watches additional work being performed, discusses how it should be completed, selects replacement materials, and allows the work to continue may be found to have authorized it.
This may be particularly relevant where the work addresses an urgent problem, such as active water leakage, a dangerous electrical condition, or an immediate structural concern. A homeowner may not be able to insist on a formal document before every step if delay would cause further damage.
The homeowner knew the work would cost more
The homeowner’s awareness of the financial consequences is important. If the contractor clearly states, “This will be an additional $3,000,” and the homeowner approves the work, the obligation is relatively clear.
Even if no precise price is given, the circumstances may show that the homeowner knew the work would result in an additional charge. A homeowner who requests upgraded fixtures, expands the design, or chooses more expensive materials may be responsible for a reasonable additional amount.
When a homeowner may not be responsible
A homeowner may have a strong defence where the contractor cannot prove that the work was authorized, that the homeowner knew it would cost more, or that the amount claimed is reasonable.
The work was already included in the quote
A contractor generally cannot charge extra for work included in the original scope. If the quote includes permits, standard preparation, disposal, installation, or required finishing work, those items may not properly be reclassified as extras.
Homeowners should compare every disputed charge against the wording of the quote, plans, specifications, allowances, and exclusions.
The contractor performed the work without approval
A contractor may not be entitled to payment merely because the work benefited the homeowner. If the contractor unilaterally decides to perform upgrades or additional tasks without informing the homeowner, the homeowner may argue that there was no authorization to incur the expense.
This is especially important where the contractor could have obtained instructions before proceeding and where the work was not urgent or necessary.
The homeowner was not told that there would be an additional charge
A casual conversation about a construction problem does not necessarily amount to an agreement to pay an undisclosed amount. A homeowner may agree that a problem should be addressed without understanding that the work falls outside the quote or will substantially increase the price.
For example, saying “make it safe” may not establish agreement to pay thousands of dollars for unrelated upgrades. The contractor should identify the problem, explain the proposed solution, and communicate the likely cost before proceeding.
The amount claimed is unreasonable or unsupported
Even where extra work was authorized, the contractor may still need to establish that the amount charged is reasonable. A homeowner can request an itemized invoice showing labour, materials, subcontractor charges, taxes, and applicable markups.
An invoice stating only “additional work - $10,000” is more difficult to assess than a detailed breakdown tied to specific instructions and dates.
The facts of each case are different, and therefore it is important to speak with a lawyer before taking on decisions that could affect your case against your builder. Our construction lawyers at OP Lawyers LLP regularly advise homeowners and builders on navigating communications when a dispute arises.
Builders’ liens and disputed renovation invoices
A contractor or subcontractor may threaten to register a builders’ lien when payment is disputed. A lien can affect title to the home and may complicate refinancing or a sale. However, the existence of a lien does not automatically prove that the claimed amount is valid.
In Alberta, builders’ lien rights are governed by the Prompt Payment And Construction Lien Act. A homeowner who receives notice of a lien or court proceeding should obtain legal advice promptly instead of ignoring it.
Homeowners should preserve the original quote, invoices, photographs, plans, payment records, inspection reports, text messages, emails, and notes of conversations. These documents may help establish what was included, what was authorized, and whether the amount claimed is reasonable.
If you receive a lien notice, demand letter, or lawsuit, our Calgary construction lawyers at OP Lawyers LLP can help you assess the claim and consider an appropriate response.
Best practices for homeowners
Homeowners can reduce the risk of unexpected renovation bills by taking the following steps:
- Use a written contract. The agreement should identify the scope of work, price, payment schedule, allowances, exclusions, warranty terms, permits, and responsibility for delays.
- Require written change orders. Every change should describe the work, added or reduced price, and effect on the completion date.
- Avoid vague instructions. Instead of saying “do whatever is necessary,” ask the contractor to identify the issue, explain the options, and provide a price before proceeding.
- Confirm verbal discussions in writing. Send a follow-up email or text summarizing your understanding and asking the contractor to correct anything inaccurate.
- Request itemized invoices. Original contract work should be separated from extras, with supporting details provided where appropriate.
- Pay undisputed amounts on time. If only part of an invoice is disputed, identify the specific disputed items and explain why.
- Keep project records. Save photographs, progress reports, inspection documents, invoices, and all communications.
- Obtain advice promptly about a lien. Do not assume that every lien threat is empty, but do not assume that every claimed extra is enforceable either.
- Ask for proof of insurance. Homeowners have a legal right to sue the insurance company of the builder if the builders are unable to pay for damages. It is important for homeowners to have a copy of the insurance policy to be aware of any exclusions under such policies.
The safest approach is to treat every proposed change as a new agreement. Clear written communication protects both the homeowner and the contractor and may prevent a renovation disagreement from becoming an expensive legal dispute.
The information in this blog is not legal advice. Every renovation dispute depends on its specific facts, contract, communications, and applicable legislation. If you are facing an unexpected renovation invoice, a builders’ lien, or a dispute with a contractor, you should consult our construction lawyers at OP Lawyers LLP.