$100K lesson - What contract language protects contractors when hidden conditions change the scope of a renovation job?
Hey all, first post.
I'm Chad, founder of Great Raven Renovations Ltd. We're based on Salt Spring Island, BC, and run renovation, roofing, decks, and structural work across Salt Spring, the Cowichan Valley, and South Nanaimo. Started the company in January 2022 after walking away from a stable off-island job rather than compromise how I wanted to work. Almost four years in now. Has been a hard, useful run.
The reason I'm here: most of what I've learned came the expensive way. Over those years I've put well over $140,000 into building this business — and lost more than $100,000 of it. Failed hires who couldn't hold a craftsmanship standard. Clients who exploited weak contract language to underpay or walk on finished work. Each one left a mark.
What changed isn't that we got smarter on people — it's that we built a system around the kinds of losses that almost killed the company.
A few of the pieces that came directly out of disputes:
Hidden-conditions clause in the master contract. Written after a project where opening a wall doubled the real scope and the client refused to acknowledge it.
Signed change orders with price and schedule impact before work happens. Written after a job where verbal "just add this" requests turned into three weeks of unpaid labour.
Before/during/after photo record on every job, including substrate conditions. Written after a homeowner claimed two months post-completion that something was never done — when in fact it was, and we had nothing to prove it.
Completion walkthrough before the final draw is invoiced. Written after a final-payment dispute that should have been a 10-minute conversation on site.
One accountable point of contact (me) instead of a rotating dispatcher. Written after we tried it the other way and watched communication fail in real time.
None of that came from a course. It came from losses. The process exists because of disputes, not in spite of them.
Curious how others here handle this — specifically the hidden-conditions problem. On older island homes we open walls and find things nobody could have priced. What language are you using in your contracts to protect both you and the homeowner when the unknown shows up? Anyone landed on wording that actually holds when a client pushes back?
Appreciate the community. Looking forward to learning from you.
— Chad
Great Raven Renovations Ltd.
Salt Spring Island, BC