Variations invoice 8 months after completion

Arnie85 · Sep 06, 2017 12:11 pm

Our house was completed in December 2016.
It is now 8 months later and we have received a variations invoice that is much more than we anticipated. Being so late, we didn't even know if they were going to send us an invoice 🤣!

We were always happy to pay 17k worth of variations and deductions that we agreed to and were given written consent by us, however the other 11k is full of stuff that we were not aware of being extras. Is it the builders responsibility before they go ahead to inform us of addional costs from our contract?

Throughout the build we asked numerous times for a variations schedule so we knew were we were at in regards to extras and deductions. We always emphasised we did not want to be hit with a large bill at the end of the build as we simply would not be able to afford it.

Does anyone have any experience with this sort of stuff and do we have a leg to stand on?

We are in NsW and it's a master builder contract.

Thanks in advance,
Arnie85

bashworth · Sep 06, 2017 12:31 pm

I am away from home so can't check my copy of the master builders contract but most contracts i have seen require a consent from you before variation work is done.

That would mean that the claim should be invalid.

Arnie85 · Sep 06, 2017 2:16 pm

[quote="bashworth"]I am away from home so can't check my copy of the master builders contract but most contracts i have seen require a consent from you before variation work is done.

That would mean that the claim should be invalid.[/quote

Hopefully, thanks !

Saint Mike · Sep 07, 2017 9:49 am

As a matter of interest - when you say you asked - or requested - or emphasised - etc - did you do this in writing or orally ?

Tend to agree with BW. Should be paperwork approving/requesting action.

I've found builders tend not to do things, rather than do them - without paperwork.

Arnie85 · Sep 07, 2017 8:58 pm

Saint Mike

As a matter of interest - when you say you asked - or requested - or emphasised - etc - did you do this in writing or orally ?

Tend to agree with BW. Should be paperwork approving/requesting action.

I've found builders tend not to do things, rather than do them - without paperwork.

No waa always just orally! if things had of been on paper with the price then we would have had the ability to say no. As we knew we had deductions as well we just always assumed we would coke out close to even on the other end as the builder just always had a very relaxed 'she'll be right' attitude to anything.

Arnie85 · Sep 07, 2017 9:37 pm

bashworth

I am away from home so can't check my copy of the master builders contract but most contracts i have seen require a consent from you before variation work is done.

That would mean that the claim should be invalid.

Like ⋅ Add a comment ⋅ Pin to Ideaboard ⋅

What do you think about the 2% part here?

StructuralBIMGuy · Sep 07, 2017 10:11 pm

Arnie85
Check you MBA contract here in wa
in the std contract clause 16. d variations
1.To comply with any written direction Given by a building surveyor
2.because of circumstances that could not necessary be foreseen by the builder at the time was entered into
16.d.2 is the killer... get out of jail free, clause for the builder...goodluck

Arnie85 · Sep 07, 2017 11:02 pm

StructuralBIMGuy

@Arnie85
Check you MBA contract here in wa
in the std contract clause 16. d variations
1.To comply with any written direction Given by a building surveyor
2.because of circumstances that could not necessary be foreseen by the builder at the time was entered into
16.d.2 is the killer... get out of jail free, clause for the builder...goodluck

Oh okay.i don't really get it...I'll pass it on to my husband! Cheers!

StructuralBIMGuy · Sep 08, 2017 9:35 am

Arnie85
.some things are unforeseeable and builders take advantage of this clause
to pass on price increases, otherwise there would be more building bankruptcies than there are.hth.
BTW. here in WA there is no 2% clause in the MBA contract I doubt the state government and the voters would put up with that Cr@p!

building-expert · Sep 08, 2017 10:47 am

It is more than likely that if the variations were not raised in accordance with the contract (read your contract) they will be invalid and you can refuse to pay, however if it goes to the tribunal then any claims will be assessed on their merit.You should get a good building consultant(experienced in building contract administration) to assist you.

Arnie85 · Sep 08, 2017 10:58 am

Thanks!
Yeh hubby went over the contact last night and there is nothing about 2% in our contract either.

It's something the builder mentioned when we raised concerns about the initial invoice. And it was only last night I came across it on that website, however it is Victorian consumer one not NsW.

We live in a border town, we are in NSW and the builder is in Victoria (across the river), however our contract is definity a NSW one , with nothing about the 2% in the contract.

Arnie85 · Sep 08, 2017 11:01 am

Thanks.

there is literally nothing written in the contract in regards to any variations. the only prices we ever got told about are the prime cost items such as carpet, tiles etc.
I will look into getting a building consultant. we are in country NsW so might be difficult

Saint Mike · Sep 09, 2017 8:02 am

Our price actually went down at the end. They'd estimated a few things (driveway etc) and they were cheaper than predicted.

Believe it or not file !

StructuralBIMGuy · Sep 09, 2017 9:18 am

Saint Mike

Our price actually went down at the end. They'd estimated a few things (driveway etc) and they were cheaper than predicted.

Believe it or not file !

When I hear this it makes me wonder? here's why
Drive ways are always over quoted and money for jam

Also, builders don't give money back unless there is something wrong, they are trying to cover something up literally and there is a high chance it might come back and bite them
Did you take photos of the rebar,etc?
I see cracked footings, driveways & Slabs all the time with, inadequate foundations, little or no rebar incorrectly placed, items estimated accidentally left out,etc,etc
I always ask how's a token credit going to fix that ... it isn't

Saint Mike · Sep 09, 2017 10:21 am

No - all good - 5 years on.

They'd given figures and I kept an eye on them. It was always understood there might be change (no pun intended).

Your comment tends to paint all builders with a tarnished brush - and they are not all that way. We generally only ever hear of the negative side - and the vast majority are positive.

Use to be the same with Hotels - only the problems got reported. Now - with Trip Adviser etc - we get a much better picture. I've had more positive dealings than negative in my 4 house builds.

StructuralBIMGuy · Sep 10, 2017 9:10 am

Agreed the majority are OK
and we can thank strict regulations, national standards, Code compliance & engineers for that
I accept people (ie builders, designers & Engineers) make mistakes..just fix them
years ago mistakes were hidden, forgotten and overlooked that was the norm...no so these days.
Some builders & contractors still want to treat clients like mushrooms, LOL keep them in the dark & feed them Bu11sh!#
think again.