Working With Your Building Client Checklist

10/30/2015
WorkingwithyourbuildingclientchecklistConsumerAffairsVictoria
Consumer Affairs Victoria Businesses Registered businesses Builders and tradespeople

Checklists Working with your building client
Working with your building client checklist

Provide your client with copies of all documents
Use a Variation Notice to change a contract
Notify your client of the cost of any delays the variation may cause
Your client has legal rights to visit the site during construction.
Your client should not have to pay when variations are ordered to deal with issues that you should have
identified before starting work.
Client access to the building site

https://www.consumer.vic.gov.au/businesses/registeredbusinesses/buildersandtradespeople/checklists/workingwithyourbuildingclient
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By law, you must allow the homeowner and their agent reasonable access to the site during construction.
They have this right even if they sign a contract that states otherwise (for example, a contract that limits
visits to business hours only).
The owner should always consult with you about occupational health and safety issues before they
enter the site.
If your client or their agent interferes with the carrying out of building works on the site, they will be
responsible for any costs or delays resulting from their actions. However, you must notify your client within
five business days, in writing, of the cost or delay caused by their actions.
Variations
Variations are changes to the contract that:
you and your client agree to make
the building surveyor orders after the contract has been signed and building work has started.
Your client should not have to pay when variations are ordered to deal with issues that you should have
identified before starting work for example, extra costs to deal with excavation, when you could have
predicted the problem by reviewing the foundation data.
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By law, you and your client must agree in writing to the changes and add the details, including the new
price and completion date, to the contract before the work is carried out.
You are legally required to use a Variation Notice to change the contract, except when you reasonably
believe the changes will not:
require a change to any permits for the project
cause delay
add more than two per cent to the original contract price.
However, we recommend that a Variation Notice is used for all changes to minimise disputes.
When a variation is ordered

When an authorised person (an architect or building surveyor, building inspector or engineer) orders
variations, you must give your client a copy of the order to make the changes and the Variation Notice.
If your client does not agree with the changes ordered, they must advise you in writing within five business
days of receiving the notice.
Prime cost and provisional sum items
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Prime cost and provisional sum items can lead to disputes with your client.
To avoid this, it is better to have specified everything in the contract. This means you can give your client a
fixed price for the work.
Prime cost items are your clients selections of fixtures and fittings (for example: ovens, taps and tiles) that
are listed items in the contract but which are not specifically identified and costed. This is because you or
your client could not determine or agree the make, model or exact price of the item at the time you signed
the contract you could only estimate the price.
Give your client a copy of any invoice, receipt or other document that shows the cost of any prime cost
item.
Provisional sum items are items listed in the contract for possible additional work, such as excavation,
where you cannot give you an exact price of the work at the time you sign the contract you can only
make a reasonable estimate of the cost.
Your client has a legal right to a reasonable estimate, regardless of the contract they sign.
By law, you must make a reasonable allowance for the nature and location of the building site when
estimating supply and delivery in the contract price. For example, if you are building on a rural property or
a steeply sloping site, you must allow for transport and access costs.
Home building completion
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Home building completion

Home building works are only complete when the:
work meets the contract plans and specifications
building surveyor has issued the Certificate of Final Inspection (for extensions and renovations) or
Occupancy Permit (for new homes).
If your client wishes to have an independent building consultant check for defects or unfinished work, you
must allow the consultant reasonable access to the building site.
If you are in dispute about areas of work, contact Consumer Affairs Victoria.
Provide your client with all documents
By law, your client has a right to copies of any report, notice, order or other document related to their
building project that you receive from:
any public statutory authority
utilities such as gas, electricity, telephone, water and sewerage
the relevant building surveyor appointed to issue the permit, or the council municipal building surveyor.
Last updated: 25/09/2015
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State Government of Victoria (Consumer Affairs Victoria) 2015
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Working With Your Building Client Checklist - Consumer Affairs Victoria

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10/30/2015

Consumer Affairs Victoria Businesses Registered businesses Builders and tradespeople

Client access to the building site

When a variation is ordered

Prime cost and provisional sum items

Home building completion

Home building completion

State Government of Victoria (Consumer Affairs Victoria) 2015

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