Building and construction/Variations

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Introduction

Variations to a contract may be additions to or deductions from the works to be executed.

Variations are generally requested by the client or the architect but may be generated by the builder due to unforseen circumstances or at the request of the principal certifying authority. It is preferable to have variations approved prior to their execution.


Web resources

  • HIA NSW Residential contracts, authority for; final payments, variations to contracts, extensions of time, notice for practical completion-documents can be purchased on line


Sample Documents

  • HIA NSW Residential contracts, authority for; final payments, variations to contracts, extensions of time, notice for practical completion-documents can be purchased on line


Key points

1. Contracts will always include procedures for processing variations.

2. Variations can be created due to unforseen matters that could not reasonably be predicted by a competent and skilled contractor at the time the contract was entered in to. For example excavation work where the foundation is suspect or unknown.

3. If a variation is requested by the contractor due to an error on his behalf the owner should not be liable for an increase in the contract price.

4. Approved variations should be paid for at the time of the next progress payment after completion of the varied works.

5. It is not a requirement to get written approval for a variation if there is a danger to persons or a risk of damage to property if the work is not done immediately.

Case studies


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