Variation claims are a common battleground between plumbers and builders. You’ve done extra work, but now the builder refuses to pay, disputes the cost, or outright rejects your variation claim. So what can you do?
Here’s a step-by-step guide to handling rejected variation claims and ensuring you don’t lose money.
🔹 Step 1: Find Out Why the Builder Rejected the Claim
Before jumping into a dispute, understand the builder’s reasoning. Common excuses include:
❌ “This wasn’t an actual variation.”
❌ “We never approved this.”
❌ “Your price is too high.”
❌ “You should have included this in your original quote.”
❌ “We’ll pay later” (but they never do).
📌 What to Do:
✔ Ask the builder for a written explanation of why they are rejecting the claim.
✔ Review your contract and emails to see if their reason holds any ground.
💡 Key Tip: If the builder is just delaying payment, they might be trying to push costs onto you. Stay firm!
🔹 Step 2: Check Your Documentation 📑
The strongest weapon you have in a variation dispute is solid paperwork. If you’ve kept good records, you can prove your case.
✅ Signed Variation Approval – Did they approve it in writing?
✅ Emails, Site Instructions, or Drawings – Proof that they requested the change.
✅ Before & After Photos – Shows the work was actually done.
✅ Time Logs & Material Receipts – Justifies your costs.
📌 Example:
If you were asked to relocate a fire hydrant and have an email from the site manager confirming the request, they can’t deny that it was a legitimate variation.
💡 Key Tip: If you don’t have written approval, the builder may argue it wasn’t authorized. This is why you never start a variation without written confirmation!
🔹 Step 3: Negotiate With Facts, Not Emotion 🤝
Builders reject variations hoping you’ll give up or lower the price. Instead of arguing, take a professional and firm approach.
📌 What to Say:
“Per our discussion on [date], the variation for [work done] was requested due to [reason]. Attached are the emails, site instructions, and cost breakdown. Can we revisit this to reach a fair resolution?”
✔ Keep your tone calm and professional.
✔ Show that your claim is justified with facts.
✔ Be open to a reasonable negotiation (but don’t let them walk all over you).
💡 Key Tip: Builders respect strong business operators. If they see you as someone who stands their ground professionally, they’re more likely to pay.
🔹 Step 4: Offer Payment Alternatives 💲
Sometimes, builders reject variations simply because they don’t want to pay upfront. You can suggest:
✔ Progress Payments – Split the cost over multiple invoices.
✔ Offset Against Future Work – Apply the amount to a future variation or invoice.
✔ Partial Approval – If they argue about pricing, see if they’ll pay a fair portion.
📌 Example:
“If full payment is an issue right now, would you be open to paying 50% now and the rest on the next progress claim?”
💡 Key Tip: Giving some flexibility can help get at least part of your variation paid.
🔹 Step 5: Refer to the Contract 📜
If the builder still refuses to pay, go back to the contract or terms and conditions that were agreed upon.
✔ Most contracts clearly outline that variations must be paid for.
✔ If the contract states that the builder must approve variations in writing, use that as leverage.
📌 Example:
“Clause 12.3 of our contract states that all additional works beyond the agreed scope must be billed as variations. As this work was requested, we expect payment as per the terms.”
💡 Key Tip: Builders know that contract terms hold weight. If you refer to them professionally, it adds pressure to pay up.
🔹 Step 6: Use a Payment Reminder & Formal Notice
If the builder is ignoring your claim, send a formal reminder.
✔ First, send a polite reminder via email:
📌 “Hi [Builder’s Name], just following up on Variation #XYZ. Please confirm when we can expect payment.”
✔ If ignored, send a Final Notice:
📌 “As per our agreement, Variation #XYZ remains unpaid. If we don’t receive payment within [X days], we may need to take further action.”
💡 Key Tip: Most builders don’t want legal threats—they’ll usually pay once they see you’re serious.
🔹 Step 7: Stop Work or Withhold Future Services
If the builder refuses to pay and keeps ignoring your claims, you may need to take stronger action.
✔ Stop working on their site (if you have unpaid variations).
✔ Withhold final certifications (if applicable).
✔ Refuse to work with them again in the future.
📌 Example:
“Unfortunately, we cannot proceed with further work until outstanding variations are settled. Please let us know how you’d like to resolve this.”
💡 Key Tip: Many builders will pay up when they realize non-payment could affect their project progress.
🔹 Step 8: Consider Legal Action (Last Resort) ⚖
If all else fails, you may need to escalate legally. Options include:
✔ Debt Collection Agencies – They chase unpaid invoices for a commission.
✔ Adjudication or Dispute Resolution – Some states have construction dispute processes.
✔ Small Claims Court – If the amount is small enough, you can file a claim.
📌 Example:
“As this variation remains unpaid, we will be referring the matter to our debt recovery team.”
💡 Key Tip: Legal action is a last resort, but just mentioning it sometimes forces builders to pay up.
🚀 Final Thoughts: Protect Yourself From Variation Disputes
To avoid these headaches in the future:
✔ Always get variations approved in writing before doing the work.
✔ Keep detailed records (emails, site instructions, photos, receipts).
✔ Price variations properly, including all costs and margins.
✔ Stand your ground professionally—don’t let builders push you around.
✔ Have clear contract terms to protect yourself.
👉 Need help pricing variations? SNZ Plumbing Estimating can provide accurate variation pricing and documentation to help protect your profits! Get in touch today. 💼📊
Disclaimer: We are not legal experts & this is not a legal advice and should not be taken as one. This is an opinion which could be right or wrong.