Financial Management
How do variation claims work in Australian home building contracts?
A variation is a change to the agreed work, price or time. The rules depend on the contract and your state. Consumer Affairs Victoria says that, for domestic building contracts there, the parties must agree to changes in writing, including the new price and completion date, before the work is carried out. Other states have their own written requirements, so check yours. A good practice in any state is to agree the scope, price and time impact in writing before the work starts, have both parties sign, and update your budget and programme straight away. Work done without a signed variation is a common cause of disputes, so get advice before agreeing to pay or refusing to pay a variation claim.
In MyBuildHub: record each variation against its contract, update the forecast cost and Timeline, and save the signed variation in your project documents.
Check yourself: Consumer Affairs Victoria, your state fair trading body, and a lawyer.
This is general information only. It is not legal advice, and MyBuildHub is not a law firm. Laws differ by state and change over time. Speak to a lawyer or your state regulator about your situation before you sign or act.