Tips for reducing Building Variations
Worried about variations blowing out your budget? Fair enough, I get it! There are things you can do to mitigate this - but first, let’s chat about what a variation actually is…
Some builders will refer to variations as ‘change orders’ (CO) which is basically the same thing, it just sounds nicer because it’s exactly what it is.
What is a Building Variation?
A variation is a change to the scope of work the builders contract sum has been based on.
Here are a list of things a variation might cover:
Firming up a Provisional or PC Sum now that the actual cost is known
Additional permit fees
Crediting back a cost saving on something onsite
Changing your mind about the specification of something (could be nil cost or +/-)
Contingency draw for something unexpected
How do you minimise variations during your build?
Some are unavoidable - like additional permit fees; but the risk of variations can be minimised for sure!
Here are my tips:
Know your scope! - If you properly understand it upfront, you can build in Provisional and PC Sums or even nut out the actual cost of it in your budget to reduce the risk of variations later on
Check any exclusions in your contract - it’s critical you are across what's in and out of your building contract.
Monitor ordering of materials - The construction industry can frequently face unforeseen supply chain issues that affect a builder's ability to procure the required materials for your home. Consider identifying long lead time items and discussing with your builder whether they can be procured early.
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Written by Annelyse, Building Contract Enthusiast, Project Manager, and founder of Build Together Project Management.
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