Browse Forums Building A New House 1 Feb 16, 2010 9:56 pm Hi all, In our contract we have a $2000 provisional amount for Crane hire, double handling, wet weather access etc. Our builder has sent through a post contract variation totalling $5000 for two items. Item one is the same as the one in the contract being for crane hire, we weather access etc but with an additional charge of $3000. Item two is for Traffic management ($2000). The two items in the variation are provisional amounts. My questions are: - Item 1 is already in the contract with a provisional amount so should we be accepting a variation for a provisional amount? - Item 2 (traffic management) is a new item. The site is in a court so do they really need traffic management? Can they add new items in the variations? They have not yet started on the site and already we are getting variations. Has anybody else experienced this? What are our choices here? Thanks in advance for any advice. Re: HELP Post Contract Variation by Builder (Crane,Traffic mgmt) 2Feb 16, 2010 10:14 pm Normally the provisional amount is worked out when your contract is made up, an amount they foresee could possibly be needed. This amount can then be used up, added to if need be, or not used and then given back to you at the end. I don't understand why they need to raise a variation for a provisional sum... unless it's a new provisional sum ie. the traffic management. I'm not sure if they are suggesting the amount will exceed the amount in the contract and are therefore letting you know so you don't get a surprise at the end, or if they are trying to pull a shifty and saying here pay this coz we said so. Sorry.. a bit confusing. Built with New Generation (Summit Homes) We own land!... with a slab on it! Plus a shell of a house with stuff inside ! Re: HELP Post Contract Variation by Builder (Crane,Traffic mgmt) 3Feb 17, 2010 8:31 am Thanks Candylea... It sounds very odd to me too... I have questioned them about what has changed to warrant the varations and they are not able to tell me. I dont know what to do. Re: HELP Post Contract Variation by Builder (Crane,Traffic mgmt) 4Feb 17, 2010 9:58 am Could it be a local council requirement? I know our builder had to cordon off the main road out the front of our property and have traffic controllers when they were delivering the concrete. Think from memory we had something like 20 trucks delivering to our site that day and they had traffic signs and coordinators everywhere to stop and assist traffic flow. Some things are worth waiting for. Re: HELP Post Contract Variation by Builder (Crane,Traffic mgmt) 5Feb 17, 2010 10:07 am They are now saying it is a OH&S requirement. Surely if this is the case, then it is always the case and they would have known about it when they put the contract together, not as a variation? Re: HELP Post Contract Variation by Builder (Crane,Traffic mgmt) 6Feb 17, 2010 3:18 pm I would tell them you're not accepting the variation until they explain why it's required. And also get a satisfactory explanation of why it was not included in the original contract. Given that it's a provisional sum, it's not really going to affect what you pay. But I would make a point that they cannot vary your contract without explaining why. Then they won't try to do it again. My builder added about $2,000 to our contract, but it was all clearly explained, and all changes were due to the fact that the initial contract was made before works on the site had been completed (it's in a new estate). Metricon Riva 33 - http://herlihy-riva.blogspot.com Site start 15/03/2010 - Handover 23/12/2010 9 months and 8 days (284 calendar days) from site start to handover I work with owner, he/she is my man on the ground and I instruct them when to visit the site and take photos and I have other tools in the bag. 4 15244 It seems very clear to me that your contract states that a security account does NOT need to be established so the answer to the builder is NO. If in doubt find a contract… 1 8501 Looking for advice on whether this variation in tile colour is acceptable. The large tile on the left was used in my main bathroom renovation 1 year ago. My ensuite… 0 8393 |