Building a custom home is an exciting and rewarding process, but one of the biggest challenges homeowners face is managing variations—unexpected changes that can increase costs, extend timelines, and add unnecessary stress. While some variations are unavoidable due to unforeseen site conditions or council regulations, many can be prevented with careful planning and clear communication.
This guide explores practical strategies to help you minimise variations, keeping your new home project on budget and on schedule.
What Are Variations in Construction?
A variation (also known as a change order) refers to any modification made to the original building contract after construction has commenced. These can be initiated by the homeowner, the builder, or due to external factors such as council requirements or supplier availability.
Common variations include:
Design Changes – Altering room layouts, window sizes, or finishes mid-project.
Material Substitutions – Choosing different flooring, tiles, or fixtures after selections have been finalised.
Structural Modifications – Adjusting rooflines, ceiling heights, or foundations due to site conditions.
Compliance Issues – Changes required to meet building codes or engineering requirements.
Client-Initiated Changes – Upgrades or modifications made at the homeowner’s request.
Every variation typically comes with extra costs for labour, materials, and administration, and they can lead to delays. The best way to avoid variations is to plan ahead and make informed decisions before construction begins.
1. Invest in Detailed Pre-Construction Planning
The more effort you put into planning before construction starts, the fewer surprises you’ll encounter.
a) Set a Clear Budget and Stick to It
Establish a realistic budget with a contingency (typically 5-10%) for unforeseen costs.
Understand that even minor changes can add up due to extra labour and material costs.
b) Finalise Your Design Before Signing the Contract
Work closely with your architect or designer to refine the floor plan before committing to construction.
Consider every detail—window placements, door swings, ceiling heights—to avoid last-minute modifications.
Use 3D renderings or virtual walkthroughs to visualise the space before signing off on the plans.
c) Select Finishes and Fixtures Early
Choose all materials, fixtures, and finishes before construction begins.
Confirm the availability of selected items to avoid delays caused by backorders or discontinued products.
If unsure about selections, request samples or visit supplier showrooms before making final decisions.
2. Choose the Right Builder and Contract
a) Work with a Reputable Custom Home Builder
Select a builder with experience in custom homes and a solid reputation for clear communication.
Ensure they have worked on homes similar to your design and budget range.
Speak to past clients about their experience, particularly regarding variations and additional costs.
b) Sign a Fixed-Price Contract
A fixed-price contract locks in the total project cost upfront, reducing the risk of unexpected expenses.
Be cautious of cost-plus contracts, where you pay for actual materials and labour—these allow for greater price fluctuations.
Ensure the contract includes a detailed scope of work, timeline, and variation clauses.
c) Clarify the Variation Process in the Contract
Ask how variations will be handled—what notice is required, how costs will be calculated, and how long approvals take.
Ensure the contract specifies that no work will proceed without written approval for variations.
3. Conduct Thorough Site Investigations
Many variations arise due to unexpected site conditions. Investing in proper site investigations early can prevent costly surprises.
a) Order a Soil Test and Site Survey
A soil test (geotechnical report) will determine if your land requires additional foundation work (e.g., piers, slab reinforcement).
A site survey will help identify boundary lines, easements, and potential drainage issues.
b) Engage Engineers Before Finalising the Design
A structural engineer can review your plans to ensure they align with the site conditions.
A civil engineer can assess stormwater management and any excavation challenges.
4. Understand Local Regulations and Approvals
a) Ensure Your Design Meets Council Regulations
Research zoning laws, setback requirements, and height restrictions before finalising plans.
Engage a town planner if necessary to avoid costly design changes later.
b) Obtain All Approvals Before Construction Begins
Ensure you have Development Approval (DA) or Complying Development Certificate (CDC) before starting work.
Delays in approvals can lead to forced design changes if regulations have been updated.
5. Communicate Clearly and Regularly
a) Hold Regular Meetings with Your Builder
Weekly check-ins can help track progress and address concerns before they escalate into costly issues.
Keep written records of all decisions to avoid misunderstandings.
b) Be Decisive and Avoid Last-Minute Changes
Changing your mind mid-build can create a domino effect of variations.
Stick to your original selections unless absolutely necessary.
c) Use a Project Management System
Many builders use online project management tools to track selections, progress, and approvals.
Request access to these systems to stay informed and reduce misunderstandings.
6. Expect Some Variations but Minimise Their Impact
Despite careful planning, some variations may still occur. The key is to reduce their impact:
Limit Changes to Non-Structural Elements – Swapping a paint colour is far easier than moving a wall.
Negotiate Variation Fees Upfront – Some builders charge high administration fees for variations, so clarify costs early.
Plan for a Contingency Budget – Have a small buffer (e.g., 5% of the total cost) to accommodate essential variations.
Final Thoughts
Avoiding variations when building a custom home requires meticulous planning, clear communication, and proactive decision-making. By finalising your design, selections, and approvals early, conducting thorough site investigations, and working with a reputable builder under a fixed-price contract, you can significantly reduce the risk of costly changes.
While some adjustments may be unavoidable, having a well-structured process in place will ensure your home-building experience is as smooth, cost-effective, and stress-free as possible.