Can I change the terms of a building contract?

A homeowner engaged a builder to renovate their bathroom. Midway through the build the homeowner decided to save money by reducing the level of tiling in the bathroom. The builder was unhappy as they had already ordered the tiles and sought advice legal advice about their rights.

Changes to contracts are called ‘variations’. Variations are changes to what parties have agreed to after they have both signed a contract. 

It is important to have a robust and efficient variation procedure in the building contract that outlines what happens if a party wants to change something in the contract.

So the first place to look for answers to the builder’s problem is the signed contract between the parties.

If there contract isn’t helpful, the Building Regulations outline a default variation procedure.

 If a client requests a variation which impacts the contract price or the completion date, within 10 working days the contractor must advise the client of:

• The work required to achieve the variation.
• Information around approvals and consent.
• The effect of the variation on the quoted or estimated price for the work.
• The effect on the due date for completion.

It is also important to consider the timeframe needed to reassess, negotiate, and agree to, any variations by both parties.

This part of the process is susceptible to problems if a clear and concise process is not adopted.

For example, clients may try to get out of paying for variation work that was requested verbally, and the contractor may not be entitled to claim the cost of variation if they cannot prove a variation occurred.

Another common dispute is whether an alleged variation is in fact a variation. This can arise if the initial project plan and design is too vague and does not detail the specifics about the project.

Disputes can arise in this case as to whether the unspecified work done was agreed to as part of the initial project plan or not.

If you are unsure, it pays to seek legal advice from a legal professional when drafting a variation procedure clause to avoid disputes in the future.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.