"Fixed price" sounds like exactly what it says, one number, no surprises. In reality, almost every build ends up with at least a small variation somewhere along the way, and understanding why that happens will save you a fair bit of stress when it does.
A variation is simply a written, signed change to what was originally agreed, either to the scope of work or the price. Under standard Housing Industry Association and Master Builders contracts, a variation can generally happen for one of a few reasons. The work might fall outside the original scope. A provisional sum might need adjusting once the actual cost is known. A prime cost item might be finalised at a different price to the original allowance. You might decide to change something yourself partway through. Or a change might be required to meet a statutory requirement that's come up along the way.
The key thing to understand is who's responsible for what. If a variation happens because you've decided to upgrade a benchtop or add a window, that additional cost, plus the builder's margin, is reasonably yours to cover. If it happens because of something outside anyone's control, that's a different conversation, and a decent builder will walk you through the options rather than just handing you a bill.
A proper variation process should always follow the same basic steps. You request a change in writing, the builder confirms whether it's possible, provides a cost, and only proceeds once you've signed off on it. If any of those steps get skipped, that's when disputes happen, usually well after the work is already done and it's too late to have a say.
Having spent years managing budgets and project timelines before I ever built a home, I understand exactly how frustrating it is to feel like a project's costs are slipping without a clear explanation. That's why at INH Moreton Bay we keep you updated on any variations as they come up, rather than saving them all up for one uncomfortable conversation at the end. Nobody wants to be hit with a stack of unexpected costs they've had no visibility of along the way.
The good news is that variations don't need to be something to fear. In most builds, changes are handled quickly, fairly and at a reasonable cost, provided everyone communicates properly and everything is put in writing. That last part matters more than people realise. A conversation on site is easy to forget three weeks later. A signed variation isn't. If you want a builder who'll be upfront with you about costs and changes from day one, that's exactly the kind of relationship we aim to build with every Moreton Bay client.
