What are variations?
Variations are changes to the original scope of work agreed upon in a home construction contract, which may include alterations in design, materials, or construction methods. These changes can impact the overall cost, timeline, and quality of the project.
Related content: Common Disputes Arising from Variations and How to Resolve Them
Why is it important to document variations?
Documenting variations is essential for:
- Avoiding disputes: Proper documentation helps prevent misunderstandings between homeowners and builders regarding the agreed-upon scope of work.
- Ensuring clarity: Written records provide a clear understanding of each party’s responsibilities and expectations.
- Providing evidence in case of disputes: Should a disagreement arise, documented variations serve as evidence of the parties’ agreement on changes.
What happens when variations are not documented properly?
When variations are not documented correctly, disputes may arise, such as:
- Confusion over the agreed-upon scope of work
- Disagreements over costs or timelines
- Legal implications, such as claims for additional compensation or delays in the project
How can homeowners document variations properly?
To document variations effectively:
- Ensure written documentation: All variations should be recorded in writing, detailing the changes to the original scope of work, including costs, timelines, and other pertinent information.
- Get variations signed off by both parties: Both homeowners and builders should sign and date the written documentation, confirming their agreement on the changes.
- Include variations in the original contract: When possible, incorporate agreed-upon variations into the original contract to maintain a comprehensive record of the project’s scope.
What can homeowners do if variations are not documented properly?
If variations are not documented correctly, homeowners can:
- Negotiate with the builder: Discuss the undocumented variations with the builder to reach a mutual understanding and agreement.
- Seek legal advice: Consult with a lawyer experienced in construction disputes to understand your rights and options.
- File a complaint with relevant authorities: If necessary, lodge a complaint with the appropriate regulatory body or seek alternative dispute resolution methods.
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Conclusion
Properly documenting variations in home construction contracts is essential for avoiding disputes and ensuring a successful project. By understanding the importance of documenting variations and following the suggested tips, homeowners can minimise the risk of issues arising from undocumented changes and protect their interests throughout the construction process.
