Variations are a hot topic for us right now, we seem to be handling a lot of them. Whether you’re a homeowner worried about unexpected costs, a subcontractor wanting to ensure you get paid, or a builder aiming to improve processes, this is something you need to understand.
To be honest, writing this was just as much for me as it is for anyone else. I wanted to clarify my own thinking around variations and how we process them, so putting it into a blog made sense.
What Is a Variation?
At its core, a variation is any change to the original scope of work. Most commonly, this happens when a client or architect requests a modification. Simple enough, right?
The reality, however, is that many variations don’t come from direct change requests, they come from missing details or discrepancies in plans. Most architects and consultants do a solid job detailing projects, but a 100% comprehensive set of plans that eliminates all guesswork is expensive, and most clients aren’t willing to pay for that level of detail. As a result, there are often gaps in documentation, leading to interpretation once construction begins.
Take stormwater design, for example. If an engineer hasn’t been engaged to complete a detailed plan, a plumber might arrive on-site and realise additional pits or larger pipes are required. That’s a variation. But if the plumber’s quote wasn’t detailed enough to specify exactly what was allowed for, it’s difficult to determine the actual cost difference.
With a complete set of drawings, variations like this are minimised because subcontractors can price their work based on an established design, rather than making adjustments on the fly.
For Subcontractors: Don’t Work Without Variation Approval
One of the biggest mistakes we see subcontractors make is starting work on a variation before it has been formally approved. Yes, waiting for approval takes extra time and might cause delays, but it’s the only way to guarantee you’ll get paid.
It’s far easier to discuss additional costs months in advance than to argue about payment after the work is done. If you’re constantly chasing unpaid variations, take a hard look at your process. Get clear documentation, submit variations in writing, and don’t proceed without approval.
Variations must go through a formal approval process so the client has the opportunity to say yes, ask questions, or reject the variation if they don’t see the value. If you proceed without formal approval, the builder may not be liable to pay you.
For Architects: Be Mindful of How Changes Impact Cost
If you’re representing the client, every change impacts the budget. Communicating these impacts is critical so the client can make informed decisions. A minor design tweak on paper can translate into thousands of dollars in real-world costs.
For Homeowners: Take Responsibility for Understanding Your Build
One of the best things you can do as a client is fully understand what you’re getting. Ask more questions. Know what’s included in your contract. A builder’s job is to execute the plans, but as the person funding the project, you need to take some ownership in understanding how your home is coming together.
For Builders: Communicate Early & Follow Up on Variations
The moment a variation is discussed, flag it with the client. Make sure subcontractors submit their variation requests before starting work – and if they don’t, it’s on you to chase them up. Variations that aren’t documented properly lead to disputes, delays, and unnecessary headaches.
Another point that often gets overlooked is how variations impact the timeline. Every change pushes out the completion date, which then disrupts the start of our next project. It’s not just about delays, it also means extra months on-site with running costs we can’t pass on to the client.
There’s a misconception that builders profit from variations. The reality? We don’t. At least, I know Lou Projects certainly doesn’t. Most variations are small, and by the time we account for the admin hours spent pricing them, processing them, and communicating with all parties, any markup barely covers the hassle. Variations disrupt workflow, slow down projects, and cause unnecessary stress – so trust me, we’d rather not have them.
The Best Way to Reduce Variations
The most effective way to limit variations is to start with a well-documented, detailed set of plans. When a client fully understands their design, materials, and spaces upfront, there’s far less room for changes later.
If you’re looking for an architect or designer, ask them for examples of a full doc set of plans. Compare these to their preliminary designs and see the difference in detail.
Additionally, engage a builder early in the design process. A good builder will spot gaps before construction starts, saving everyone time, money, and stress. Builders (like us) have strong relationships with our trades and can call on them during pricing to explore cost savings and optional extras – something rarely accounted for in project budgets. And yes, pay your builder for this service. It’s one of the most valuable steps in the process, yet almost always overlooked. But that’s a discussion for another day.
Final Thoughts
Variations aren’t going anywhere. But how they’re handled can make or break a project.
While changes can be frustrating, at the end of the day, we’re working on high-end custom residential homes, not project builds. Clients and architects will always have some level of change, and while that can be challenging, it also means we get to build incredible homes and push the boundaries of craftsmanship.
Whether you’re a homeowner, subcontractor, architect, or builder, understanding your role in the process will reduce disputes, keep work moving smoothly, and lead to better project outcomes for everyone involved.
