Building & Construction Practice Area: Variation Claims
The Building & Construction practice area focuses on legal issues related to building projects in New Zealand. One important part of this area is called Variation Claims.
What are Variation Claims?
Variation Claims happen when changes are made to a building contract after it has been signed. These changes can be due to many reasons, such as:
- New design ideas that come up during the project.
- Unexpected problems, like discovering bad soil that needs extra work.
- Changes requested by the client for personal preferences.
Why are Variation Claims Important?
Variation Claims are important because they can affect the cost and time of a building project. For example, if a homeowner decides they want a bigger kitchen halfway through the build, this change can lead to extra costs and delays. It’s essential to handle these claims properly to ensure everyone knows what to expect.
How Does the Legal Process Work?
In New Zealand, when a variation occurs, the builder or contractor must usually inform the client and provide a detailed explanation of the changes. This includes:
- How much extra money is needed.
- How long the changes will take to complete.
If both parties agree, they can sign a new agreement. If there is a disagreement, it may lead to a formal claim, which can be resolved through negotiation or, in some cases, legal action.
Conclusion
Understanding Variation Claims is crucial for anyone involved in building projects in New Zealand. Whether you are a homeowner, builder, or contractor, knowing how to manage these changes can help ensure a smoother building experience.