Browse Forums Building A New House Re: When do you pay for Post Contract Variations? 7Oct 01, 2010 1:25 am viewtopic.php?f=31&t=37229 - our Iris 4! Re: When do you pay for Post Contract Variations? 12Mar 10, 2020 10:20 am What happens if your total variations are a negative $$ amount after signing the contract ? We signed the contract, then spent some money at prestart, and then we deleted approximately $10k of items from the contract eg. driveway concreting. Our variations total after signing the contract and approx. $10k. Will this $10k be deducted from the final payment amount ? eg. practical completion bill will drop from $64k to$54k ? Re: When do you pay for Post Contract Variations? 13Mar 10, 2020 11:20 am nat000 What happens if your total variations are a negative $$ amount after signing the contract ? We signed the contract, then spent some money at prestart, and then we deleted approximately $10k of items from the contract eg. driveway concreting. Our variations total after signing the contract and approx. $10k. Will this $10k be deducted from the final payment amount ? eg. practical completion bill will drop from $64k to$54k ? Hi Nat, Our experience with this is that the amount was taken from the total contract amount, I.E. a build of say 200k with -10k variations our builder would change the total build cost to 190k with the progress payments reflecting percentage of the new total cost. I hope this makes sense. We're building now so this example is a very recent one. Re: When do you pay for Post Contract Variations? 14Mar 10, 2020 11:24 am Hi Nathan Yeah that definitely makes sense. Our progress payments (we've made 2 already) are still based on the orginal contract higher price. So I not sure if they'll just take the $10k off the last payment. Re: When do you pay for Post Contract Variations? 15Mar 10, 2020 11:32 am Nat, In that case they probably will. They cannot charge you more for what you have been supplied with, especially if you have the variations from them. When you got the variation(s) did it come with a new total contract price or was it just what it was removing/adding? Re: When do you pay for Post Contract Variations? 18Mar 10, 2020 12:02 pm Yeah I won't pay the higher orginal total and wait for a refund cheque for the -$10k in variation. I really should ask them now to confirm the last payment will be $10k less. I just like to go in with some knowledge from others. Re: When do you pay for Post Contract Variations? 20Mar 12, 2020 12:45 am I'm not sure what the HIA contract says in other state but in WA the variation is due at the next progress payment claim after the work is completed. We (I work for a builder) will alter the progress payment claim schedule if Variations go over $20k, makes it fairer for both parties, any credit variation are adjusted at the final progress payment, that's how it is written in the contract. 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 8510 So AFAIk the outcomes of the BAL ratings form part of a clause that allows them to pass these costs on to you. However the more relevant detail is how did it go from 19… 1 9165 The fastest thing a builder will do is bank your cheque, those systems work perfectly with lightning speed, everything else is slow burn. Just the way it is. 1 8710 |