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ARTICLE · 25 MAY 2024

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How to claim for unapproved variations? Quantum meruit in construction contracts

Explains quantum meruit and its application for builders to claim for unapproved variations.

AustraliaReal Estate and Construction
Jace Coaldrake-Redhouse
Jace Coaldrake-Redhouse
Bailey Fraser
Bailey Fraser
Author LinkedIn connections

Building contracts establish the relationship between a builder and owner. Often however, changes are made to the scope of work during the course of a project that are not anticipated in the contract. This can be due to a variety of reasons including design changes, materials shortages, unforeseen site conditions or design changes requested by the owner. These changes are known as variations. Most building contracts will require variations to be documented in writing prior to work on the variation starting.

But what if the variations haven't been documented in accordance with contractual provisions and/or have not been signed off by the owners?

Such work is considered an unapproved variation and can occur for a variety of reasons. In these cases, a builder will, at first instance, not be entitled to claim payment for unapproved variations under the original contract.

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