Why Variations in Building Contracts Can Be Costly — And How to Manage Them

April 7, 2025

If you’re building a new home and thinking about making changes after signing the contract, you’ve probably heard this warning:
“Be careful—variations can be expensive.”

And it’s true. Building contract variations often come with unexpected costs that can add up fast if you’re not prepared. In this article, we’ll break down:

  • What a variation is
  • Why they often cost more than expected
  • When changes are easiest to make
  • How to keep variation costs under control

We’ll also explain how Today Homes handles variations to give you a real-world example of what a transparent, client-focused process can look like.

What Is a Variation in a Building Contract?

A variation is any change to the agreed specifications, plans, or materials in your building contract. This might include:

  • Changing the floor plan
  • Upgrading fixtures or finishes
  • Adjusting the electrical layout
  • Adding features like skylights or storage

Variations can happen at any stage in the building process—but the timing of your request will directly affect the cost and complexity of the change.

Why Are Variations So Expensive?

There are several reasons why contract variations can lead to higher costs—especially once construction has started:

1. Rework or Disruption on Site

If a change requires undoing completed work (e.g. moving a wall, re-routing wiring), it can affect multiple trades and delay the schedule.

2. Administrative and Project Management Time

Variations need to be quoted, approved, rescheduled, and communicated to all involved. This adds admin and coordination time to the project.

3. Supplier Pricing Changes

If your new selection involves different materials or finishes, prices may differ from the original contract or require special orders.

4. Builder Margins

Some builders add margin or fixed admin fees on every variation as a risk buffer—sometimes making the cost higher than the change itself.

When Is the Best Time to Make Changes?

The earlier, the better.

Making changes before your plans are lodged with council is usually the most cost-effective time. After consent has been granted and work has begun on-site, variations can become complex, costly, and in some cases, may require resubmitting for council approval.

How to Minimise Variation Costs

To avoid unexpected costs and delays, follow these tips:

Plan Thoroughly Upfront

Spend time on your design, layout, and specifications before signing the contract. Ask lots of questions and make sure you fully understand what’s included.

Clarify the Variation Process

Ask your builder upfront how variations are handled. Do they charge admin fees? Will you be credited if your change reduces costs?

Get Variation Requests in Writing

Always get a written quote before approving a variation. This should include the cost breakdown, impact on timeline, and any supplier lead times.

Be Aware of the Build Stage

Once construction has started, be extra cautious about making changes—especially structural or layout-related ones.

Variation Example: How Today Homes Handles It

At Today Homes, variations are welcome—within a clear and structured process designed to keep things fair and transparent.

  • Pre-consent flexibility:
     From contract signing until building consent is lodged, clients can make as many changes as needed. Only the actual cost (or credit) of the variation is charged—no admin fees or markup.
  • Fixed plans post-consent:
     Once the plans are lodged with council, the design is locked in. This ensures clarity and prevents delays during the build phase.
  • Transparent pricing:
     Every variation comes with a clear cost breakdown before approval, helping clients make informed decisions.

This model helps avoid the “variation shock” that many buyers experience and supports a smoother building experience.

Final Thoughts: Don’t Fear Variations—Just Understand Them

Variations are a normal part of the home building process, but they need to be managed carefully to avoid unexpected costs and delays. The key is knowing when changes are best made, understanding how they’re priced, and working with a builder who’s upfront about the process.

By planning ahead and asking the right questions, you can make confident decisions—and still get the home you want, without blowing your budget.