A homeowner hired a builder to renovate their bathroom but decided midway through the project to reduce the level of tiling to save money. The builder, who had already ordered the tiles, sought legal advice on their rights. This scenario involves contract changes known as ‘variations.’

Understanding Variations in Building Contracts

Variations are modifications to the original terms agreed upon by both parties after the contract has been signed. It’s crucial to have a clear and efficient variation procedure outlined in the building contract to manage such changes.

Steps to Take When Dealing with Variations

1. Check the Signed Contract: The first step is to review the signed contract for any provisions or procedures related to variations.
2. Default Variation Procedure: If the contract does not provide clear guidance, refer to the Building Regulations, which outline a default variation procedure.

Default Variation Procedure

When a client requests a variation that impacts the contract price or completion date, the contractor must inform the client within 10 working days about:

– The work required to achieve the variation

– Any necessary approvals or consents

– The effect of the variation on the quoted or estimated price

– The impact on the due date for completion

Importance of Clear Communication

It’s essential to have a clear and concise process for handling variations to prevent disputes. Both parties need time to reassess, negotiate, and agree on any changes.

Common Issues with Variations

1. Verbal Agreements: Clients may attempt to avoid paying for verbally requested variation work. Contractors might not be able to claim costs without proof of the agreed variation.
2. Vague Project Plans: Disputes can arise over whether certain work is a variation or part of the initial project plan. This often occurs when the original project plan and design lack specific details.

Seeking Legal Advice

If you’re unsure about handling variations, it’s wise to seek legal advice when drafting a variation procedure clause. This can help avoid disputes in the future.

At Core Legal, we offer a range of fixed-price Initial Consultations to help you quickly understand your options. Our experienced team is ready to answer your questions and guide you through the process. Contact us today to get on the right track.