Why Do Builders Charge for Variations

I bet you have heard from your friends who have started a build or built before that they feel like their builder has ripped them off due to being charged a fee for a variation to the contract. I don't mean just for the extra work; I mean an admin fee for collating and organising the variation.
 
Before we get into this, let's start with a variation and how they may arise to give you more insight. 

What is a Building  Variation 
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A variation is construction works, or a material or fixture and fitting change decided on after the final build plans and signed contracts.   

Typically, before construction work starts with a  builder, you finalise your building plans and engineering. Then the builder puts together the final fixed price quote, which outlines all work items, materials, and fixtures and fittings included in your contract.
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Now, if you get underway with your builder and want to make a change, for example, you want to replace the tap with a different one or move a few light switches or light fittings. Or maybe you want to increase the size of your decking area in the alfresco. These things would result in a variation to the contract because they were not initially noted or included in the contract hence the name "variation".

How to Avoid a Builders Variation 
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The best way to try and avoid variation is to plan better upfront and do plenty of research in the pre-design and design stages.

The more research you do, the better informed and knowledgeable you will be around what you want from your home.

There are plenty of courses out there that can help you with this. I will note my favourite here by the fabulous Amelia Lee: The Home Method.

I cannot stress this enough, by pre-planning your renovation or build and selecting all your materials and fixtures and fittings upfront with your builder. Getting it all priced into the contract and detailed on the working drawings  (builders plans) will save you massive heartache in the construction phase.
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If you have put in enough effort from the get-go, you will hopefully not need to swap anything out during construction, and you will not want to make too many changes to the floor plan. 

The Variation Process for a Builder  
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Some variations are just unavoidable as no matter how prepared you are, sometimes you will change your mind due to a change in heart, or it may be that now that you see the walls are up and you can better visualise your new spaces.
 
 This change in heart or ability to better visualise may create the desire to make those variations.
But what is the actual process, and what is involved from the builders perspective to ensure that construction runs smoothly and those said variations do not get missed by the trades onsite?
 
Each variation is different to the rest, but generally, the process goes something like the below
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1. The owner requests a variation to the builder
2. Builder contacts suppliers and or sub-contractors for a quote for the variation
3. Builder to discuss with trades the implications of the new works or material and resolve any issues
4. Builder to physically write up the variation and get it signed off by the homeowner
5. Working drawings may well need to be amended y the draftsman to ensure this is not missed on site
6. Builder to send all relevant trades the new up to date plans and ensure they understand the new works
7. Builder to then supervise and ensure the works get completed and invoiced appropriately

 
Depending on the type of variation work requested, the minimum time to prepare a variation for a builder for a simple swap of a fixture would be 1 hour. However, some other variations can take anywhere between 2-5 hours of just administrative time alone. 

Why Do Builders Charge for Variations  
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So you can see from the above that builders will take anywhere between 1-5 hours to prepare and administer a variation. Because of this amount of work involved, the builder needs to be charged for the administration hours as these hours have not previously been costed into the contract price.

 If a homeowner was to do ten variations on one job, this could result in over a week's worth of work!

Now granted, the builder will also receive a builders margin on any works. However, a  profitable builder operates by charging a margin on all works, including administration. Therefore if a builder is not charging for variation admin, they are essentially losing money on the job.
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Most homeowners agree that they would prefer their builder to remain profitable, especially throughout their build.
Now, this hopefully sheds some light on the reasoning behind why a builder may charge for a variation. 

Conclusion
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A variation to a builder's contract is simply a builder undertaking works that were not initially priced for in the contract and detailed on the plans. A variation can be avoided by pre-planning better upfront in the pre-design and design stages.

However, variations may still arise for many reasons, and when they do, the builder has to follow a process to ensure the variation proceeds correctly. Therefore, due to this administrative work involved, the builder must charge a fee to the homeowner to cover the cost.  
 
The biggest takeaway from this blog post is to make sure you prepare for your renovation or newly built home.  
Spend more time in the planning stage and design stages with your team of professionals to ensure the outcome during construction will be to have fewer variations.  No matter how you look at it, whether from a cost point of view or not, the process of variations slow the construction works down and can create stress at an already stressful time.
 
If you are thinking of building or renovating, do reach out to us. We are happy to help you and consult with you and your designer on price and buildability throughout the initial design stages to ensure that you get the home you desire and are suited to your budget.