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08 January 2024

How Builders Sneak Variations into Your Project

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When schools undertake construction or expansion projects, every dollar carries weight. This is especially true for projects funded under AISNSW BGA Grants, where accountability, transparency, and adherence to the approved scope are paramount.

A trusted school builder plays a vital role here—not only in delivering the physical structure but also in safeguarding the integrity of the project against cost blowouts and unnecessary variations. Understanding how and why variations arise is the first step toward keeping your project aligned with its original vision and budget.

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What is a Variation?

In school design and construction, a variation refers to any change made after the contract is signed—whether it’s a modification to design, materials, or scope. While some variations are legitimate and even beneficial, others emerge from oversights or ambiguities that can quietly inflate costs and delay completion.

For schools working within strict BGA funding frameworks, managing variations isn’t just a matter of financial prudence—it’s a matter of compliance. Every change must be justifiable, documented, and approved within the conditions of the grant.

 

5 Methods Builders Use to Sneak in Variations

  1. Lack of Detail in Design Documentation: A school builder might use vague design documents to justify variations, which could impact the overall project budget and affect the commercial viability of the BGA Grant-Funded Project. Therefore, precise and detailed designs are essential.

  2. Poor Project Estimation: Builders may underestimate project costs, leading to additional scope and increased expenses. Choosing a school builder with a strong estimating team can mitigate this risk.

  3. Lack of Due Diligence: Failing to confirm the availability of specified materials or products can lead to unplanned variations. This is particularly important for school projects with specific material requirements.

  4. Exceeding Scope of Works: Some builders might add extra work, claiming it was always part of the contract. This can be a significant issue in school construction, where budget adherence is crucial.

  5. Adding Variations During Construction: Unmonitored builders may introduce changes during the build phase, especially in large projects like those often seen in AISNSW school constructions.
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How to Avoid Variations in Your Next Project


Design and Construction or Early Engagement Method. This approach is beneficial for managing AISNSW school builder projects. The design and construction firm comprehensively understands the project, reducing the likelihood of unapproved variations.

Fixed-Price Contracts. Signing a fixed-price contract with your school builder can help control costs, especially when managing a BGA Grant budget.

Understanding the Project Scope. Ensure that all parties, including the builder, fully understand the project scope and agreed costs. This is particularly important in school construction projects requiring compliance with AISNSW BGA Grant terms.

In Summary

Variations can erode both trust and value in a school construction project. They often stem from the very practices that transparency and early collaboration are designed to prevent.

By partnering with an experienced school builder who values open communication, rigorous documentation, and accountable processes, schools can protect their budgets, uphold grant compliance, and achieve the learning environments they set out to create.

Informed decisions and clear expectations aren’t just good practice—they’re the foundation of a project that stays true to its purpose.

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