Claim variations under the ACT Lump Sum Residential Building Contract

Members are reminded to comply with their obligations under the contract during the course of the construction, in particular, when claiming a variation under the contract. It is important for the builder to identify any work that might be considered a variation before it is undertaken.

The MBA ACT Lump Sum Residential Building Contract provides for a variation to be issued 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.

The builder must ensure that a valid variation is issued – this is done by checking the contract for the process and complying with the detail and service of the variation.

Failure to comply with the administrative requirements of the contract might result in you not getting paid for the additional costs that occurred.

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