Northern Territory · variations

Variations on Northern Territory subcontracts: getting changed work paid

Most variation money is lost between the site conversation and the paperwork. The standard subcontract lets the builder direct variations unilaterally, gives you a short written-notice window (as little as 2 business days in contracts we've analysed) with an absolute bar behind it, and lets the builder value the work where rates don't apply. Under the Construction Contracts (Security of Payments) Act 2004 (NT), variation amounts claimed under the contract flow through the payment claim process like any other amount.

The three clauses that take the money

Unilateral direction: "the subcontractor must comply with all variation orders" - you're bound to do the work before the price is agreed. Positions builders have accepted: variations agreed in writing before they bind, or a cap (bound only within the general scope, up to a stated percentage of the contract sum).

The notice time bar: a direction you consider a variation must be notified in writing inside the window or the claim is lost - 2 business days appears in real contracts. And valuation: "reasonable rates as determined by the Contractor" puts the price of your work in the other party's hands; a schedule of rates incorporated into the contract, sitting high in the order of precedence, is the fix.

The NT angle

In the NT, a rejected or unpaid variation claim under the contract raises a payment dispute like any other - and the 90-day adjudication window runs from that dispute. The Act's implied provisions also fill gaps where the contract is silent.

The Territory is the last pure West Coast jurisdiction: there is no payment claim / payment schedule exchange at all. A payment dispute arises when a claim under the contract is rejected or unpaid at the due date, and either party has 90 days from that point to apply for adjudication. Where the contract is silent, the Act implies terms, including maximum payment terms.

The 90-second habit

Before leaving site on the day anything changes: one email. "Confirming we discussed [the change] on site today. We're treating this as a variation. Formal notice and pricing follow within the contractual timeframe. Work proceeds on that basis unless you advise otherwise." It anchors the date, creates the record, and starts you inside whatever window the contract sets.

From the Australian Subcontract Index - live data

100%

have time bars that extinguish the claim entirely · 39 of 39

From 54 subcontracts analysed to date · see the full Index

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Frequently asked questions

Do I have to do variation work before the price is agreed?

Under standard drafting, yes - the direction binds first and valuation follows. That's why the pre-signature ask is a written-agreement requirement or a cap, and the on-site protection is same-day written confirmation of every direction.

Can I claim an unpaid variation through security of payment in NT?

Yes - a rejected or unpaid variation claim raises a payment dispute under the NT Act, with 90 days from the dispute to apply for adjudication.

Keep reading

Do variations need to be in writing for me to get paid? →What is a time bar in a subcontract — and when does it kill the claim? →What makes a progress claim one that actually gets paid? →How long can a builder take to pay a subcontractor in Northern Territory? →Time bars in Northern Territory subcontracts: what you lose, and when →Retention on Northern Territory subcontracts: what's normal, and what to watch →How adjudication works in Northern Territory →Not being paid in Northern Territory: when can you lawfully stop work? →

General information for Australian subcontractors, not legal advice. Statutory deadlines change and have exceptions - verify against the Act and current guidance, or with a construction lawyer, before acting on them.