What action must a contractor take if they exceed their normal service charges?

Get ready for the Contractors Business and Law Exam. Enhance your study experience with flashcards and diverse multiple-choice questions. Each question is designed with hints and thorough explanations to boost your readiness for success!

The most appropriate action for a contractor who exceeds their normal service charges is to notify clients in advance. This is important because transparency and communication build trust between the contractor and the client. By informing clients ahead of time about the change in charges, the contractor ensures that clients are aware of potential costs and can make informed decisions regarding the continuation of services or seeking alternatives. This proactive approach helps to maintain a good working relationship and can prevent disputes or misunderstandings related to billing.

While documenting charges strictly is a good business practice and reviewing licenses may be important for compliance, these alone do not directly address the situation of exceeding normal charges in a way that fosters client trust and satisfaction. Reporting to the Division of Professional Licensing (DOPL) may not be necessary unless there are violations or unethical practices, which is not implied in the context of merely exceeding service charges. Thus, notifying clients in advance stands out as the most necessary and effective action in this scenario.

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