How to Protect Against Scope Creep in Contracting Agreements in Bahrain
In Bahrain’s contracting industry, one of the most common and costly challenges is scope creep. This occurs when additional work, changes, or modifications are added to a project without proper contractual adjustments to time, cost, or resources.
If not managed correctly, scope creep can erode profits, delay completion, and create disputes between employers and contractors. This blog explains how contracting agreements can be structured to prevent scope creep, the legal tools available under Bahraini law, and practical measures to control project scope.
What Is Scope Creep?
Scope creep happens when:
- Additional tasks are requested informally without variation orders
- The employer changes design specifications after work begins
- Stakeholders add new requirements without assessing the impact on cost or time
- The contractor agrees to changes verbally without documenting them
While some changes are inevitable, uncontrolled scope expansion can lead to financial losses and legal disputes.
Legal Protections Against Scope Creep in Bahrain
- Detailed Scope Definition
- Include precise specifications, drawings, and measurable deliverables in the contract.
- Clearly list exclusions to avoid misunderstandings.
- Variation Order Procedures
- Require all changes to be formally approved through a signed variation order.
- Define how cost and time impacts will be calculated before work proceeds.
- Payment Adjustment Clauses
- Link payments to agreed variations to ensure fair compensation for extra work.
- Protect against unauthorized deductions for disputed changes.
- Documentation & Record Keeping
- Maintain written records of all change requests, instructions, and approvals.
- Use site meeting minutes as evidence if disputes arise.
- Notice Requirements
- Include clauses requiring timely written notice of any requested changes.
- Failure to give notice can waive entitlement to additional payment or time.
Risks of Ignoring Scope Creep
- Unpaid extra work due to lack of formal approval
- Delayed completion without extension of time protection
- Increased material and labor costs not recoverable from the employer
- Damage to client relationships due to disputes over responsibilities
Example:
A contractor in Bahrain was engaged to build a high-end residential complex under a lump-sum contract. Midway through, the employer requested luxury interior finishes instead of the standard ones specified.
The contractor agreed verbally and carried out the changes without issuing a variation order. When the final payment was due, the employer refused to cover the additional cost, arguing the finishes were part of the quality expectations.
A lawyer reviewing the dispute found that, because the contract required written variation orders for any changes, and none were issued, the contractor had little legal ground to recover the extra cost. This highlights how failure to follow variation procedures can turn legitimate work into unrecoverable expenses.
Best Practices
For Contractors:
- Never start additional work without a signed variation order.
- Train project managers to identify scope changes early.
- Keep detailed records of all instructions and approvals.
For Employers:
- Use formal variation processes to control costs.
- Evaluate the time and budget impact before approving changes.
- Avoid giving informal instructions that bypass contractual procedures.