Variation Fees.......... What are they?




This piece of advise could save you hundreds of dollars from the cost of your new custom built home......


Did you know that your builder will charge you a variation or administration fee every time you change your mind or change a decision on anything to do with your new home?


For example – When you signed your contract, your builder had allowed for a 20mm Stone bench-top to be included in your new kitchen.


Since signing your contract, you have decided that you would like to upgrade to 40mm Granite bench-tops for your kitchen.


Obviously, you are aware that the cost to change from 20mm stone to 40mm Granite is going to be more expensive, but what you may not be aware of, is that there will also be a variation fee or an administration fee on top of the extra cost of the materials.


This is not an un-usual charge, and it is one that you builder had you agree to when you signed your building contract, but it is one that most people may be un-aware of.


If you are making a large number of changes throughout the construction process, I’m sure you can imagine how quickly this can add up to hundreds, if not thousands of dollars. One simple way to minimise variation and administration fees, is to complete as many of your new home selections before you sign your building contract.


This way, your builder will ensure that your correct choice is listed as a specification in your contract, and the cost of your specifications has been allowed for in the contract price.


All of this means that right from the beginning, you know exactly what inclusions you will have in your new home and exactly how much it is going to cost, giving you peace of mind throughout the construction process.