Consumer Building Guide NSW- Contract Variations
Before you sign a contract, be confident that you have thought of everything. Once you and
the builder sign the contract, any change you need to make is known as a variation, because
it is a change or adjustment to what has already been agreed to.
The builder or tradesperson may need to vary the contract because of a council requirement
or unforeseen circumstances such as a rise in the price of materials.
All variations must be in writing and include the signature of both parties to the contract.
This includes changes to plans, schedules, attachments to the contract and other documents
referred to in the contract. Approved variations then become subject to all contract conditions.
In almost all circumstances, any variation (addition or deletion) to a contract will have an impact
on the contract price. In most cases, this will result in a price increase but in some circumstances,
a price reduction might occur. Ideally, documents authorising variations should contain a
statement explaining the cost implications of the variation and the impact on the overall contract
price, and the basis for the calculation of the price change should be shown rather than just
a simple dollar amount.
Before the work commences on the variation or addition, the builder or tradesperson should
give you:
• a written description of the work
• any plans or specifications for the work
• the extra cost, and any extra time required to complete the work.
Both of you should sign this written notice if you agree on the work and price.
If the variation is needed because there is likely to be a danger to someone or damage to property,
there may not be time to put the details in writing. In this case, the written variation may be done
after the work has been carried out.
Following these procedures for additions and variations will help to protect you if there is a dispute
about the work later on.
Reference- NSW Fair Trading viewed 15/2/12, image source google
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