Protecting Your Profits: Avoiding Unpaid Variation Disputes in Construction
Construction projects are inherently complex, often involving changes to the original architecture plans or scope of work. While flexibility is essential, it can lead to disputes when contractors are asked to perform additional tasks without proper compensation.
In a recent case, a contractor completed additional work requested by the client, going beyond the initial agreement and architecture plans. However, the payment for such works was refused, with the client claiming the work was unnecessary and citing non-compliance with the original contract.
Unfortunately, this approach is not uncommon and can leave contractors struggling with financial and legal consequences despite acting in good faith. Whether you’re doing construction work for a neighbor or a stranger, it’s essential to remember: always protect yourself with a clear and well-drafted written agreement.
So, what shall be considered to mitigate such risks?
Disputes like this can be simply avoided by taking proactive steps, such as:
- Verbal requests can lead to misunderstandings and disputes. Document every change and ensure both parties agree on the cost and scope.
- For significant deviations, a signed variation order helps clarify responsibilities and prevents disputes. Remember, more documented you are, more secure your business affairs.
- Keep the client informed at every stage in writing, providing updates to avoid surprises or disagreements.
Unpaid additional work is a frustrating and all-too-common challenge for contractors. Our team specialises in resolving these disputes, ensuring you can recover what you’re owed and protect your rights.
Contact us today for expert assistance in navigating construction conflicts effectively.
