Claiming variations: you must comply with the procedure in the contract

It is important that you follow the contract when there is a variation, whether it is upon your client’s request, or otherwise triggered under the contract. This means you must comply with the process and requirements for issuing variation notices that are set out in the variation clause. If you use MBA ACT Home Building Contracts, you are required to identify any work that might be considered a variation before undertaking the work and to follow the procedure set out in the contract to notify your clients. Failure to comply with the requirements set out in the contract may result in disputes and you not getting paid for additional costs you incurred for performing variations.

Builders may not be entitled to any variations, but variations that are prescribed under the contract. Builders who use the MBA ACT Lump Sum Residential Building Contract (2024 version), are entitled to claim variation in the following circumstances:

1. extras or omissions
2. additional work
3. changes in the character or quality of any material or work
4. changes in the levels, lines, positions or dimensions of any part of the Works
5. changes in the price of trades or materials due to a shortage of trades or materials that was not foreseeable at the date of the contract, or
6. extras or missions associated with compliance to altered statutory provisions.

Compliance with your contract is the key to minimising disputes between you and your client. Although it may not prevent your client from raising a dispute or bringing a claim, you will be well-placed to respond or defend if you have complied with the requirements set out in the Contract.

If you need any contract advice, please reach out to our Workplace Relations and Legal Team on 02 6175 5900.