Scope (of Work)
The scope of work is the specific set of repairs to be performed on a project as defined by the estimate. The scope of work overlaps with the scope of loss but serves a different purpose: the scope of loss is the adjuster's damage assessment, while the scope of work is what the contractor actually builds from.
What You Actually Build From
The scope of work is the specific set of repairs to be performed on a property, and the gap between the scope of work and the carrier's scope of loss is where most supplement disputes originate. The scope of work overlaps with the scope of loss but serves a different purpose. The scope of loss is the adjuster's damage assessment - what is broken and what the carrier will pay to fix it. The scope of work is what the contractor actually executes. They overlap, but they are not identical, and the gap between them is where most supplement revenue is recovered.
Scope of Loss vs. Scope of Work
These two documents start from the same damage but serve different audiences and often reach different conclusions.
| Scope of Loss | Scope of Work | |
|---|---|---|
| Written by | Carrier's adjuster | Contractor or public adjuster |
| Purpose | Determine insurance payment | Define actual construction work |
| Audience | Carrier, claims department | Crew, project manager, suppliers |
| Pricing basis | Carrier's Xactimate database | Actual material and labor costs |
| Completeness | Often 50-65% of actual repair cost | Should reflect 100% of required work |
Why Scope Disagreements Drive Supplements
Scope disagreements between contractors and carriers are the most common reason supplements exist. If the adjuster's scope says "replace 20 squares of shingles" and you measured 24 squares, that 4-square difference is revenue that needs to be recovered. If the scope excludes ice and water shield that local code requires, that is a supplement. If the scope specifies 3-tab shingles but the existing roof has architectural, that material upgrade is a supplement.
Every line item difference between the carrier's scope and your scope is a negotiation point. Document every discrepancy with photos, measurements, and code citations. The more specific your documentation, the harder it is for the carrier to deny during re-inspection.
Building a Bulletproof Scope of Work
Your scope of work should account for everything the job requires - not just what the carrier approved. Include tear-off, new material installation, code upgrades, flashing, drip edge, ventilation, and any related trades that trigger the three-trade rule for O&P.
Write the scope in Xactimate with proper line items, accurate Sketch measurements, and correct waste factors. A scope of work built in Xactimate is a document the carrier has to engage with. A scope written in a Word document or a handwritten estimate gets ignored.
Frequently asked questions
Scope of loss is the adjuster's damage assessment - what is broken and what it costs to fix. Scope of work is what the contractor actually builds from. They overlap but are not identical; the scope of work may include items the adjuster missed or exclude items the contractor deems unnecessary.
Scope disagreements between contractors and carriers are the single most common reason for supplements. If the adjuster's scope says 'replace 20 squares of shingles' and the contractor measured 24, that 4-square difference is money that needs to be recovered through a supplement.
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