Builders and Contractors - variations must be in writing

Our message on building and construction matters is alwaysto get your paper work right!

Remember, the contract is your contract. It contains the terms on which you will complete the works.

If the contract is to be varied, the terms on which it is to be varied (including the price!), are for you to decide.

Don’t be pressured to undertake building work that you don’t want to do. Don’t accept terms (including a price!) that are not favourable to you. It is your contract. It is your decision.

BUT... if you decide to vary the contract, then the obligation is on you to ensure that you comply with your contract and the Domestic Building Contracts Act 2000 (the ‘DBC Act’). Your contract probably requires the variations to be in writing and signed off by you and your owner before the work is done.

The DBC Act requires variations to be in writing and signed, otherwise you aren’t entitled to be paid … unless QCAT approves that payment. You won’t get QCAT’s approval unless you satisfy the Tribunal that:

• There are exceptional circumstances OR you would suffer unreasonable hardship; and

• It would not be unfair to the Owner for you to be paid.

These days, when everyone knows that variations must be in writing, QCAT takes a very dim view of contractors seeking its approval.
Members often come to see me when they have allowed themselves to be ‘persuaded’ to do building work or to accept a price, that is not in their best interests... so they end up in a position where their ability to perform the contract on their terms, is compromised.

Or they have agreed to vary the contract but have not put the variation in writing.

Remember, you control the contract... you control the job.

You should not agree to build something that is contrary to good building practice. Even if you are simply complying with the Owner’s request, you will be held responsible for that work.

That is not to say that all requests to vary the work or the contract, are unreasonable. The majority of them are quite reasonable ... but, before you agree to any variation, you must be satisfied that it is in your best interests and that you are adequately compensated (… and paid!…) for it.

And you must put the variation in writing.

The circumstances where Contractors come unstuck are not new. The best way for you to protect your contract and your profit is to only agree to vary the contract if it is in your best interests and then, only on terms that are acceptable to you.