What happens if I make changes to my house design after signing the Building Contract?
What happens if I make changes to my house design after signing the Building Contract?
When it comes to building a new home, there is a perfect time for everything.
One of the most important things for new homebuilders is achieving a design that's going to suit your family and last through years of happy memories. It's everyone's goal to have a layout of a home that's going to perfectly suit your family.
One thing that isn't spoken about enough is when the right time is for designing and locking in that perfect design. When building a new home, the right time to focus on design is before the Building Contract is signed. To avoid extra costs and variations during your build, it is so important that before you sign the building contract you are feeling confident that your design won't need to change during construction.
This blog post shares insights into the realities of what happens if you do make changes to your new-build design during construction and tips on how to achieve that perfect design and get your build finished on budget and on time.
Can I make changes to my house design after signing the building contract and construction has started?
If you are thinking of making a design change after signing the construction contract, you must be prepared for the variation costs and increase to building timelines that will follow.
Thinking making a change to your build (no matter how small) won't incur cost and time impacts is a common misconception for first-time home building clients!
Every time a change is made to your plans during construction, the following two things automatically happen:
Variation costs will be incurred
Your Builder may ask for an Extension of Time to complete the change
No matter how small the change is, it is perfectly reasonable for your builder to submit a variation for the costs and the time impact of that change. Take changing the joinery in your kitchen for example—more often than not, your builder has already negotiated all the costs with that joinery subcontractor, and that subcontractor has started making the plans, organising staff, and ordering materials for the design that you agreed to at the start. As soon as you change your kitchen joinery design, it makes all of the effort that your builder and their subcontractor has already done abortive because they now need to start again at square one with your new change. We need to be considerate of our builders and once the Contract is signed, allowing them to start and continue building without change. The best home building clients know they need to commit to a design and resist making changes wherever possible.
One of the biggest tips I tell all my clients: sticking to your plans & reducing the urge to change will save you a bunch of time & money throughout your build!
The time to change is during design!
If you do need to make a change, talk to your builder about the time and cost impacts of the change. Being informed before locking into anything is essential.
How can I avoid variations to the contract price with my home builder?
Over half of all homes built in Australia end up costing more than they were originally budgeted for. It's really important that when you start a new build, you understand that there will be variations that come up and the reasons for these variations are all documented in your building contract.
One of the smartest things you can do is dive into the details of your building contract so you know exactly what is in there—what has been excluded, what to be aware of, and to be wary of. This is what I go through in detail during my personalised Home Building Contract reviews. During these reviews, I educate clients on what's in their building contract so they can sign with confidence. We also discuss tips to avoid variations specific to the details of their new home build.
Here are some of the tips that I share with Building Contract review clients to help keep costs down when building a new home:
General tips for keeping costs down during a build & avoiding variations:
Seek out education on what’s in your building contract before signing
Avoid whenever possible making changes to the design or specifications once construction begins - changes almost always lead to additional costs & time
Ensure plans and specifications are as detailed as possible before signing the contract
Request materials to be ordered early, especially items with long lead times like windows, doors and custom items
Have regular communication with your builder about potential variations or extensions of time
Keep a contingency budget of 5-10% for unexpected issues
Create a scope reduction list to offset new variations costs when needed
Document all discussions about costs and get variations in writing before work proceeds
Building Contract reviews for New Home Builds & Renovations
If you're looking for a personalised review of your Building Contract at a reasonable price, you can find out more information about my Building Contract Health Checks here.
I support clients with their HIA and Master Builders Home Building contracts from all states in Australia, including Victoria, ACT, Queensland, New South Wales, Tasmania, WA, and the Northern Territory.
Building Contract reviews with me are for people who want to understand their contract better before they sign.
If you're a person like me who wants to dive into the details, wants education on what makes a good contract, and what to look out for - then you're a great match for a Building Contract Review with me.
Ultimately, I want you to walk away from our session with confidence to proceed with signing your contract.
We go through any of your questions like what to watch out for and how to keep costs within your original building quote.
Thanks for reading and catch you on my next post :)
Annelyse
Construction Management | M. Construction Law
