A scope of work is a detailed document that describes every task, material, and cost in your rehab project. It's the single most important document in the entire deal. Without it, you're managing against nothing.
Why Every Investor Needs One
Budget control. The SOW is your budget in document form. Every dollar is a line item. There's nowhere to hide surprise costs.
Scope creep prevention. If it's not in the SOW, it's a change order. Anything added requires written approval with a price. This one feature pays for the SOW many times over.
Contractor accountability. The SOW is what you compare actual work against. "Did the contractor do what the document says?" Yes = pay. No = hold.
Quality definition. "Update the bathroom" is meaningless. "Install 24-inch white vanity with marble top, Delta Ara faucet in brushed nickel, and 12x24 ceramic tile surround" is a quality specification.
Timeline foundation. The SOW breaks into weekly milestones. No SOW, no meaningful timeline.
What a SOW Should Include
For every room and every task:
- Description of the work to be performed
- Specific materials (brand, model, dimensions, color)
- Quantities
- Labor cost for that task
- Material cost for that task
- Who supplies the materials (contractor or investor)
Plus:
- Weekly milestone schedule
- Payment terms (weekly draws)
- Change order process
- What is excluded from the scope
Sample SOW Entry
Master Bathroom:
| Task | Labor | Materials | Supplier | |---|---|---|---| | Demo existing vanity, toilet, tub surround, flooring | $600 | $0 (dumpster in demo budget) | - | | Install 36" white Shaker vanity with cultured marble top | $350 | $420 | Investor | | Install American Standard Cadet toilet, white | $200 | $195 | Investor | | Tile tub surround with 12x24 white ceramic (60 sqft) | $750 | $310 | Contractor | | Install LVP flooring (45 sqft) | $180 | $135 | Investor | | Install Delta Ara widespread faucet, brushed nickel | $150 | $185 | Investor | | Install recessed lighting (2 units) | $250 | $60 | Contractor | | Paint walls and ceiling, semi-gloss, white | $200 | $45 | Contractor | | Bathroom Total | $2,680 | $1,350 | |
That's a SOW. Every dollar visible. Every material specified. No ambiguity.
Getting a Good SOW
Three options:
- Write it yourself. Requires significant experience.
- Have the contractor write it. Risk: they control what's in it and what's left vague.
- Independent assessment. At Seller's Little Helpers, our $150 scope visit produces a detailed SOW independent of the crew doing the work.
The SOW and Weekly Draws
Weekly draws only work with a detailed SOW. The SOW defines what should be completed each week. The draw review compares actual work to the SOW. Payment follows verified completion.
No SOW = no meaningful draws = no accountability. They go together.
Book a $150 scope visit at sellerslittlehelpers.com - start with the most important document first. Call (708) 536-6700 or email info@sellerslittlehelpers.com.