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$11,000 post contract variation.. What do I do?

Discussion in 'Development' started by Moist, 15th Oct, 2015.

  1. Moist

    Moist Well-Known Member

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    Hi guys, I'm in the middle of a build and apparently there was sub surface rock that needed to be removed from the site. I believe my contract says that the client would be responsible for any unforseen sub-surface rock. They have varied the contract by $11,448 to remove the rock and I don't think I can afford this due to a huge drop in business recently. What do I do?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    @Moist

    1 - read your contract
    2 - confirm if there are any timeframes which relate to advising you in writing of variations
    3 - confirm if there are any clauses requiring the builder to provide you a price for the variations BEFORE undertaking the works.
    4 - reread the contract
    5 - consult a good contracts administrator/quantity
    6 - possibly need to suck it up if the contract is slanted towards the builder (ie. HIA contract or builder's own contract)

    Here's the NSW Fair Trading contract:
    Refer to Cl 13 Variations

    (I have not read the legal pack/user notes for the OFT Home Building Contract so can't comment upon whether it has been tested in court).
     
    Last edited: 16th Oct, 2015
  3. Be Developer

    Be Developer Property Developer Business Member

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    @Moist

    Most likely(without checking your contract), you will have to pay for that variation.

    you can always get couple of independent quotes!
     
  4. Moist

    Moist Well-Known Member

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    they already did the work.....
     
  5. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    Did they advise you that they discovered the sub-surface rock prior to carrying out the work?
     
  6. Moist

    Moist Well-Known Member

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  7. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    When building from scratch, the most unknown cost is getting out of the ground (as you know). Once out of the ground, you pretty much know what the cost from there on will be.

    You'll probably just have to suck it up and pay the extra. :(
     
  8. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    All seems above board as it's in the contract and you were notified before work was carried out.
    Unless you want to dispute the amount of the variation, I don't think you have much choice but to pay it.
     
    wylie likes this.
  9. Moist

    Moist Well-Known Member

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    Yeah sadly it looks that way. $11k for removing some rock, I don't know why I went to University.....
     
  10. wylie

    wylie Moderator Staff Member

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    We had this when we built a pool and again when digging into the hill when we built under our house. Pool allowance was $1k. We signed the contract and knew anything over $1k was our cost. I think digging cost $3k all up. Digging under the house cost us (from memory) about $14k. We knew it was likely (especially after digging the pool) and signed the contract. We could have stopped earlier but that meant a tiny downstairs area and I'm glad we kept on going.

    What I don't understand is why you are not wanting to pay something you signed off on? Who do you think should pay for a job that you went ahead with, after knowing it could cost more?
     
    Terry_w likes this.
  11. Moist

    Moist Well-Known Member

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    Give me a break, I didn't expect $11k to remove some rock....
     
  12. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    [​IMG]

    The add at the top of this thread.....
     
  13. wylie

    wylie Moderator Staff Member

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    I'm just asking who you think should pay?
     
  14. Moist

    Moist Well-Known Member

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    I think they should have given me some quotes at least
     
  15. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    What if they quoted you $500/hr for equipment/operator and $xxx per tonne or cubic metre or rock/soil removal?
    It really would not make much difference as the unknown factor is not known until the required depth is reached.
    You can't quote an unknown amount and they need to get the job done fast so probably have to use their preferred contacts.
     
    Propertunity likes this.
  16. pinkboy

    pinkboy Well-Known Member Premium Member

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    If you are building don't you have some ancillary buffer money sorted for these situations? If you are that tight then you need to question if it's the right time to build if your cashflow is tight.

    And going to university doesn't automatically qualify you high income, so don't demean those who don't and make good $$$.

    pinkboy
     
    jim1964 likes this.
  17. Scott No Mates

    Scott No Mates Well-Known Member

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    Go back to post #1

    Read your contract
    Engage a qs or a ca.
    Or bend over and smile.
     
    Leo2413, Terry_w and pinkboy like this.
  18. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I don't understand this comment. What does going to university have to do with this?
     
  19. Scott No Mates

    Scott No Mates Well-Known Member

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    @Terry_w - You go to uni to lurn that book readin' stuff 'n nu ideas.

    My uni lernt me to read contracts.
     
  20. See Change

    See Change Timing Lord Premium Member

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    11K for moving rock is not that much .The machines are expensive .

    We spent 80 k excavating on our last PPOR

    I want to excavate some very hard rock for a boat shed . For it only costs me 11 k , I'll be really happy .

    Cliff