In our last Post we promised to ……
“detail the importance of Construction Site Diaries and General Contract Administration – especially for Contract Variations”
So here it is…. And its FREE !!
Note : Below is a Contract Variation Form for FREE – Our competitors charge anywhere between $60 and $1,500 for this form and not one of them covers all of the key items !
First and foremost you need to understand that you are bound by the Contract that you have entered into.
Generally speaking the Contract will require both parties to agree on any variation in accordance with the Contract’s Terms and Conditions.
For example, if the specification or the scope of the work changes causing costs to rise or fall or requiring the completion date to move in or out then the Contractor must provide a Variation with an Extension Of Time (EOT) Claim for the Principal to agree to (approve). Generally speaking most Building & Construction Contracts have time frames for such a process to be completed within.
A record of all Contract Variations & EOT Claims and Approvals thereof should written and circulated to all stakeholders at the time of the Claim and Approval – do not rely on verbal agreements.
As promised is a FREE Contract Variation Form
Make every effort to use this form in every instance and do you best to obtain your clients authorisation / approval.
If for some reason the Contractor is pushed by the Principal to “get the job (variation) done and work out the details later” it is strongly recommended that a detailed record is kept by way of site diary to use as a reference of the facts as they happened (“contemporaneous evidence”).
To keep track of variations and all aspects of your works see our Construction Site Diary www.sitediary.com.au which is a simple and effective way to keep a reliable record of all of the daily activities & issues on a construction site.
A Construction Site Diary kept daily can be the most valuable evidence outside of the Contract itself in a dispute – it is well worth taking 15 minutes each day to keep it up to date.
Kept properly, and together with all necessary correspondence, a Construction Site Diary can be the basis of your Project Administration.
There you have it – be strict with the above and you will be on solid ground when you have a construction dispute or payment claim issue !
In the current uncertain times for the Building & Construction Industry getting all of the above right is more important than ever.
And never forget; Prevention Is The Best Cure.
Peace of mind that you have good admin and record keeping is worth its weight in gold ! Especially when you are having a payment claim determined at adjudication under the Security Of Payments Act legislation.
In our next Post we will detail the importance of the right “Debt Recovery Mindset”.
In the meantime please look through our website for information on how we may assist you further recoup.com.au
In most instances we use the “Building & Construction Industry Security Of Payments Act” for Construction Debt Recovery but not always – there are sometimes more appropriate options.
Traditional Debt Collection methodology can also be appropriate in certain circumstances.