Additional Installation cost for variation

aConcernedAussie · Apr 15, 2023 11:58 am

Hi all,

Hoping to understand the standard process of variation.

I have a house and land package which is closing to completion

During the contract phase, there was an agreement for a variation on the kitchen benchtop (We agreed to pay additional money for a better top)
We've recently received an email from the builder requesting more money for the installation of the top by them (in the thousands)
Some additional info, originally they tried to tell us that the variation-asked-for was 'out of stock'. A quick check revealed it was in stock and they tried to provide us with a lower quality switch
the installation is by them
The 'main reason' I am given is because the 'cost of cut and install has increased by 30% since 2021'

Can a builder simply say there's an additional installation cost of thousands for a benchtop. I find it hard to believe that.

Thanks,
Marko

Ashington Homes · Apr 15, 2023 4:09 pm

Hi Marko

The best thing to do is to have a look at your contract and see how the variation clause is worded.

We use the NSW Fair trading contract and the way that is worded is that the Variation needs to be signed by both parties before it is valid. My guess is that if we were to provide a variation which was then accepted by both of us, we wouldn't be able to vary that later on if prices increased.

But as I said, check your contract and see what it says.

In terms of prices increasing, they have gone through the roof in the past 24 months, especially joinery and labour, so I do believe what your builder is saying. The question is, do they have the ability to pass that onto you now?

All the best

Simeon