The Practical Benefits of Clause 18: Variations

Clause 18 of the NSW HIA Lump Sum contract requires that any variations to the construction project be in writing and signed by both parties. This clause serves a crucial purpose in avoiding or resolving disputes between builders and homeowners. 

Here are some of the practical benefits of Clause 18:

  • Having variations in writing provides clarity and specificity, ensuring that both parties understand and agree to the changes in scope, cost, and timeline.
  • Clear and specific agreements help avoid misunderstandings and disputes that can arise when expectations are not aligned.
  • Clause 18 ensures that variations are properly documented and agreed upon, reducing the likelihood of disputes and misunderstandings.

Clause 18 provides practical benefits for both builders and homeowners by ensuring that any changes to the construction project are properly documented and agreed upon in writing. This can help avoid misunderstandings and disputes that can arise when expectations are not aligned.

Mitigating Disputes Through Clause 18

Disputes can arise in home building contracts when there are changes to the original scope of work, cost, or timeline.

Here are some examples of disputes that can arise from variations:

  • Disagreements over the cost or scope of the variation
  • Delays in completing the variation
  • Disputes over who is responsible for paying for the variation

Clause 18 can help mitigate these disputes by requiring that any variations be in writing and signed by both parties. This provides clear and specific agreements on the changes to the construction project, reducing the likelihood of misunderstandings and disputes.

There have been many cases where disputes have been resolved or avoided through Clause 18. For example, a homeowner requested a variation to add a second-story deck to their home, but the builder did not complete the deck to the homeowner’s satisfaction. However, because the variation was in writing and signed by both parties, the homeowner was able to take legal action and receive compensation for the incomplete work.

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Related content: Managing Risks in Construction: The Role of Dilapidation Reports in Preventing Third-Party Disputes

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Clause 18 of the NSW HIA Lump Sum contract plays a crucial role in mitigating disputes that can arise during the construction process. By requiring that variations be in writing and signed by both parties, Clause 18 ensures that both builders and homeowners are aware of their rights and responsibilities. This can help avoid misunderstandings and disputes, and ensure that the construction project proceeds smoothly.

To ensure that variations are properly documented and agreed upon, it is recommended that both parties carefully review and understand the terms and conditions of the contract. It is also recommended that any changes to the construction project be agreed upon in writing and signed by both parties.

As a specialist construction lawyer with over 10 years of experience, I regularly advise on the NSW HIA Lump Sum contract and represent both owners and builders in court and the NSW Civil and Administrative Tribunal. If you have any questions or concerns about your home building contract, please do not hesitate to contact me for guidance and support.