Contract changes and variations

What is a variation

Changes to the contract after it is signed are referred to as ‘variations’. Variations should be kept to a minimum to avoid cost overruns and potential confusion on site.  

Failure to properly and accurately record and approve variations before they are implemented is one of the most common causes of serious building disputes. It is very important to ensure these changes are properly documented so everyone is on the same page.

Documenting an agreed variation

The QBCC Act requires that before you, as the contractor, commence the variation work:

• you must present the variation to the home owner in writing
• the home owner must agree to it in writing. 

The variation may be given to the home owner (and the home owner needs to respond):

• in person
• by post
• email
• in accordance with any provision in the contract providing for the service of notices.

You can find a variation form template for use with our contract templates. Held within the drop downs for contracts on this page, you will find a list of forms and schedules – variation forms are listed as a Form 4 or Form 5 within this list, depending on the contract type.  

Inclusions in a variation document

The document that outlines the variation must:

• be readily legible (easy to read)
• describe the variation
• state the date of the request for the variation
• if the variation will result in a delay affecting the subject work—state the building contractor’s reasonable estimate for the period of delay
• state the change to the contract price because of the variation, or the method for calculating the change to the contract price because of the variation
• if the variation results in a change to the contract price—states when the increase is to be paid or the decrease is to be credited.

See changing, cancelling or amending home warranty cover for information on what to do when the contract is varied. This is also your responsibility.

Once agreed

You, as the building contractor, must give the home owner a copy of the variation in writing before the first of the following happens:

• the domestic building part of the variation work starts
• 5 business days from the day both parties agree to the variation.

The only exception is if the variation work is required to be carried out urgently and it is not reasonably practicable, in the circumstances, to produce a written copy of the variation before carrying out the work.