Browse Forums Building A New House 1 May 03, 2012 2:04 pm Before I start, yes I’ve read the contact which states the cost of post-contract variations. In many cases these costs are justified. In others, it’s a punitive overhead which bears no relation to the cost of the work performed Our house has just reached lock-up stage with the staircase installed. After choosing our flooring we’ve realised that the original staircase stain we chose won’t be a good match. We have asked the builder if we could change the stain colour, only to be met with a $200 contract variation fee if we do so. No additional materials, just some paperwork. I’d be cheaper for me to ask for it to be unstained and I’ll stain it myself after handover, but that would also be a $200 contract variation ... What’s your most ridiculous post-contract variation cost? Any tips for others when trying to reason with your builder? Check out our build here: http://ourcheltenhamemperor.net What's your most ridiculous post-contract variation cost? 2May 03, 2012 2:10 pm Our builder has a $500 contract variation fee so we made sure we were happy with everything before we signed. Jasmin Hickinbotham Belmont - modified Signed: February 2011 Slab should go down before 2012 My build thread https://forum.homeone.com.au/viewtopic.php?f=31&t=52310&p=799483#p799483 Re: What's your most ridiculous post-contract variation cost 3May 03, 2012 2:13 pm My builder charges me $500 per change so $200 is alot cheaper.. There is no way you can reason out with them coz thats how it work mate!!! Re: What's your most ridiculous post-contract variation cost 4May 03, 2012 2:46 pm I will be talking with the builder and asking them to wave the variation fee as it is just a different stain colour. They are not going to re-make the stain just use a different one... Preliminary agreement 23/11 Contract 22/03 Prestart 06/04 - finalised on 30/04 Unconditional approval 10/05 Demolition 05/07 Slab 26/08 Brickwork 13/09-06/10 Roof frame started 07/10 viewtopic.php?f=31&t=32292 Re: What's your most ridiculous post-contract variation cost 5May 03, 2012 2:54 pm so in a nutshell, your error, your mistake, but you don't want to accept it.... any thought to the fact that the builder might have placed an order for the stain already? most likely not, but it's the principle here, thats why there are variation costs....even on some of the smallest things.... Us customers (of the builders) get all upset like you have displayed, no wonder most builders prolly adopt the mentality similar, if every customer decides the colour or style is not right, changes their mind and then whines that they dont want to pay any admin or variation costs, even though they signed that they would. Fair is fair, and YOU are clearly in the wrong here. Re: What's your most ridiculous post-contract variation cost 6May 03, 2012 3:13 pm We have a $500 for each variation after the selections were done. i would not be pushing this too hard as (a) you have simply changed your mind and that is not the builder fault and you have a clause in the contract you signed about the cost of variations, and 9b) you are only at lockup stage so if you hassle them about something which is not their problem now they may be less inclined to respond positively to any minor problems you have in the future. Re: What's your most ridiculous post-contract variation cost 7May 03, 2012 3:24 pm It doesn't hurt to talk directly with your site supervisor to see if he can help without raising a variation. If not I will probably pay the $200 and get the right stain unless you are ok to re-do it after handover? Preliminary agreement 23/11 Contract 22/03 Prestart 06/04 - finalised on 30/04 Unconditional approval 10/05 Demolition 05/07 Slab 26/08 Brickwork 13/09-06/10 Roof frame started 07/10 viewtopic.php?f=31&t=32292 Re: What's your most ridiculous post-contract variation cost 8May 03, 2012 5:06 pm As a builder I can tell you that the charge is neither ridiculous nor expensive this is why: 1 Contract administrator has to accept your instructions and amend the colour on your project documentation 2 Change has to be communicated down the chain of command to the supervisor and the tradie 3 Builder is responsible for getting it right or you will be after him to do it again. Most builders don't like variations because they interfere with efficient production. However you can try your luck with the builder. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: What's your most ridiculous post-contract variation cost 9May 03, 2012 5:17 pm Oh my gosh those variations are so much! I understand that charges should be incurred due to all the paperwork, time etc that is required to make changes, however $500 seems a bit excessive, our builders only charge $75 per variation! Kayla Re: What's your most ridiculous post-contract variation cost 10May 03, 2012 5:21 pm Man I've gotta review my fee structure. $ 500 for each change? @builderforlife Building inspector and passionate about construction When you need an expert to take a look. Re: What's your most ridiculous post-contract variation cost 11May 03, 2012 5:30 pm Thinking some more about this the builders would be hard pressed to identify the actual cost of these charges. This is the basis of the current class actions against the banks on exception fees, basically they charge you $ 15 fee when a cheque bounces but their true cost is probably measured in cents. @builderforlife Building inspector and passionate about construction When you need an expert to take a look. Re: What's your most ridiculous post-contract variation cost 12May 04, 2012 8:17 am we were told after our color appointment that if we wanted to change anything it would be $500 for the variation and $500 for the paperwork involved and $300 to make an appointment at the color studio.even if we wanted to change the smallest thing... even a door handle . so I am sticking with everything ive chosen! Re: What's your most ridiculous post-contract variation cost 13May 04, 2012 8:33 am If it were cheap to make changes everyone would do it all the time. The fees are excessive like speeding fines, it's to deter people from making changes to a production of something. Don't blame builders for charging heaps. http://lindeman28.blogspot.com - Our building blog Re: What's your most ridiculous post-contract variation cost 14May 04, 2012 9:05 am Volume builders are focussed on production line where they give you the biggest bang for your buck and no variations during construction. If you want flexibility and personalised service during construction including variations as you go then choose small boutique builder. You will get all that but at a price. You can't have all he flexibility and attention at a budget cheap price. Just as quality is a function of price so is the service. Management of contract variations and management of production for change costs money. The best defence against variation costs is no variations, therefore know what you want at the start. You can consider having things done after handover or pay the price. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: What's your most ridiculous post-contract variation cost 15May 05, 2012 5:36 pm I think the most woeful contract variation goes to a friend of mine who got slugged with a $1500 'NBN fee' - and here I was thinking the NBN is meant to be free!! My Hamptons build (completed): viewtopic.php?f=31&t=63370 Moved in Wednesday 11th Dec 2013 Front landscaping completed June 2016 Re: What's your most ridiculous post-contract variation cost 16May 05, 2012 6:36 pm No fixed variation fee, the builder is flexible and charges for the time the changes take only Re: What's your most ridiculous post-contract variation cost 17May 05, 2012 6:54 pm and what about when they change something? our tiles had to b changed, twice. Funny thing was we got a letter both times stating we wouldn't b charged the 500.00 on this occasion.!! I would speak to the SS, the painters normally buy the paint, stains he could tell them to get the darker color. Re: What's your most ridiculous post-contract variation cost 18May 05, 2012 6:59 pm $1000 is what we get charged for a variation, we have signed contract but have not signed construction drawings or even settled land or confirmed our loan with the bank yet! Might be cheaper to do anything my self! We where debating 'sound proofing' the home theater walls since it shares a bedroom wall, and that's $1000 + cost of variation 2 Re: What's your most ridiculous post-contract variation cost 19May 05, 2012 9:54 pm cinder I think the most woeful contract variation goes to a friend of mine who got slugged with a $1500 'NBN fee' - and here I was thinking the NBN is meant to be free!! NBNCo will install fibre to the NBN box (usually in your garage) for free during your rollout - from there you need a home network hub and the wiring for your phone lines, tv points (and at least one data point) put in by the builder - NBNCo doesn't do any of the networking inside your house for you. Getting that done for $1500 is actually a pretty good price from the builder based on prices other people are being charged if that "NBN Fee" you mention is actually the setting up of the home network that is required. Wrt to the general topic of the thread - the excessive variation fees are to encourage you to get it right at selection time, as frequent changes tend to delay things for the reasons mentioned above by building-expert (builders are good enough at making delays happen all on their own without the customer causing further delays due to variation requests). Some people apparently have nothing better to do than comment on other people's sigs. The worst thing you can do is sign a building contract without a pre contract review. Over the years many people have come to me with disputes where they just signed… 0 8338 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 Thank you. That is really helpful. Once we get the place done and passed for OC we can upgrade in the future once we get back on our feet and not paying mortgage and rent. 4 5713 |