Quote protection
The discovery clause: price the job you can see, not the one you can't.
Most quotes are written before the wall is open. A discovery clause says the price covers the visible scope, and that rot, bad wiring, leaks, or code surprises found during demolition get priced separately before work continues. It protects the contractor from eating hidden work and protects the customer from a mystery invoice.
Direct answer
A discovery clause is one or two sentences in the quote stating that the price assumes existing conditions are sound, and that hidden damage or code issues discovered after opening walls, floors, or fixtures will be documented and approved as a separate change order before the added work starts.
01Workflow
How to use a discovery clause without scaring the customer
- 1
Add the clause to every quote, not just risky jobs, so it reads as standard practice.
- 2
Point at it during the walkthrough and explain it protects both sides.
- 3
When you find a hidden condition, stop and photograph it before touching anything.
- 4
Write the added scope and cost, and get approval before continuing.
- 5
Attach the photos and approval to the job record for invoice day.
02Practical notes
What matters in the field.
The clause sets the expectation. The change order does the work.
A discovery clause alone does not authorize extra billing. It tells the customer surprises may cost more. The signed or texted change order for the specific discovery is what makes the added cost stick.
Photograph the discovery before you fix anything.
A photo of the rotten subfloor or the burnt junction box taken the moment it is found is the strongest evidence you will ever have. Once it is repaired, your proof is gone.
Customers accept surprises they were warned about.
Most invoice fights over hidden work happen because the customer heard the price as a guarantee. One sentence at quote time turns the same discovery from a betrayal into a known risk.
The federal government uses the same clause.
US government construction contracts include FAR 52.236-2, 'Differing Site Conditions', used by agencies like the Army Corps of Engineers. Its core rules translate directly to residential work: give written notice promptly and before the conditions are disturbed, and no price adjustment is allowed without that notice. If the largest builder-client in the country needs this clause, a one-person crew does too.
03Checklist
Discovery clause checklist
Clause included in the written quote
Mentioned out loud during the walkthrough
Photo of the hidden condition before repair
Written scope and cost for the discovered work
Customer approval before the added work starts
Approval and photos saved with the job record
Example
Example discovery clause wording
This price assumes existing framing, wiring, and plumbing are in serviceable condition.
Hidden damage, rot, code issues, or other conditions discovered after opening walls, floors, or fixtures are outside this quote.
Any such discovery will be documented with photos and priced as a written change order for your approval before work continues.
04FAQ
Common questions.
Does a discovery clause let me bill for anything I find?
No. It sets the expectation that discoveries cost extra, but each discovery still needs its own documented scope, price, and customer approval before the work happens.
Will the clause make my quote look less competitive?
Careful customers read it as professionalism. A bidder without one is either padding the price to absorb surprises or planning to fight about them later.
Is there an official version of this clause?
Yes. Federal construction contracts use FAR 52.236-2, 'Differing Site Conditions'. It requires the contractor to give written notice promptly, before the discovered conditions are disturbed, and makes the equitable price adjustment conditional on that notice. The wording above is a plain-language residential adaptation of the same idea.
See what the approval record looks like.
Open the sample PDF first, then download SiteTicket AI if this is close to how you handle added work, customer approval, and invoice backup.
Related guides
Change order with signature: what to capture before extra work starts.
When a contractor needs a signed change order, what to include, when to collect the signature, and how to keep a clean approval record.
Extra work approval text: wording to send before continuing.
Copy-ready wording contractors can send when a customer asks for extra work while the job is already underway.
Contractor change order template for small extra work.
A practical contractor change order template for extra work, added cost, customer approval, and invoice handoff.