Scope of Work Template for Flip Contractors

Why does a flip need a written scope of work?

The budget says how much. The scope says what. Without a clear scope, two bids for "redo the kitchen" can differ by thousands and both be honest.

• Comparable bids. Every contractor prices the same work.
• Fewer change orders. Disputes usually start with "I thought that was included."
• Faster draws. Lenders and inspectors check completed work against the scope. The live Axelrad guide on cash to close and rehab draws recommends a line-item scope tied to current condition, separating essential repairs from optional improvements.
• Cleaner exits. Buyers' inspectors and appraisers see a consistent finish.

What goes into a good scope of work?

Each line should answer five questions: what (the task), where (room or area), spec (material, model, finish, quantity), who supplies (contractor or owner), and done looks like (the standard for completion).

Scope of work template (copy and fill in)

Fill in the sections below, working through the header, general conditions, exterior, systems and interior, then copy each result into your bid package. Each line should name the task, the spec, who supplies it and what done means.

Section 5: Exclusions. List what is not included, for example: hidden structural repairs, mold remediation, items behind walls not yet opened, owner-supplied materials, appliances. Exclusions prevent arguments later.

Section 6: Change order process. "Any work outside this scope requires a written change order with price and time impact, signed by both parties before work begins."

Section 7: Payment tied to completion. Map payments to completed sections, not to calendar dates. Align them with your lender's draw stages.

How detailed should a flip scope be?

Detailed enough that a contractor who has never seen the house could price it from the document and photos. "Paint interior" is vague. "Paint all walls and ceilings, two coats, a named paint brand and line, walls in a named color in eggshell, ceilings flat white, trim semi-gloss, approx. 1,400 sq ft floor area" is a scope.

Scope review checklist before you send it out

Tick each item before you send the scope to contractors.

How do you use the scope to compare bids?

Send the identical scope and photos to at least three contractors and ask them to price it line by line, using your line numbers. When bids come back, put them side by side. Big gaps on a single line usually mean someone misread the spec or plans to substitute materials, so call and ask. A low total with a missing line is not a low bid. It's an incomplete one.

Example (hypothetical numbers): three bids on line S2 (electrical) come in at $3,200, $3,600, and $7,900. The outlier priced a panel upgrade the other two didn't. Now you know to ask whether the panel needs replacement, which is a question worth answering before you close.

When should you update the scope?

Update it whenever the plan changes, and date each version. If you open a wall and find something new, write the added work into the scope as a change order, price it, and adjust the budget. Keep your lender informed of material changes so draw inspections match the current scope.

Is a scope of work a contract?

On its own, it's a specification. It usually becomes part of the contractor agreement as an exhibit. The agreement itself (payment terms, insurance, liens, warranties, dispute resolution) should be reviewed by a real estate attorney in your state. Building code and permit requirements vary by jurisdiction, so confirm them with the local building department and licensed trades.

Key takeaways

• A scope says what, where, to what spec, who supplies, and what "done" means.
• Match scope lines to budget lines one for one.
• List exclusions and a change order rule.
• Tie payments to completed work that lines up with your lender's draws.

Put the scope with the budget

When your scope and budget match line for line, include both when you submit your deal. Program details are on the fix-and-flip loan page.