The $500 Variation Myth That Costs Subbies Thousands
Subbies skip the small variations because they're scared of annoying the builder. From the builder's side, the opposite is true: what builders hate is finding out three months later. One five-minute email the day the scope changes protects a claim that can run to $50k or $100k. Here's exactly what to write, and why it's the habit that separates the subbies who get paid from the ones who don't.
Transcript
Here is an uncommon myth that a lot of subbies don't know about or falsely believe. Basically, it is the fact that if they put in a variation for everything, every little change on site, even if it's just 500 bucks, in fear that it's going to piss off the builder and hurt the relationship. Look sometimes if you do it the wrong way or you're too micromanaging type yes there's exceptions to that rule where you might but in the grand scheme of things builders value subbies and tradies that understand and know how to document a project and particularly manage it with respect to changes whether it's in the subcontract the scope whatever it happens to be documenting those and raising that to them what they hate more is a subbie who will just tell them late which the builder's contract with their principal and whether they can
claim it upstream it is very very messy for them to kind of the subbie at the end or like three months later or at the end of the project kind of gather what went on what change occurred the subbies recount of it and it is very difficult then downstream to understand what the actual changes and who needs to be paid for what when no documentation or paper trail or anything written has been kept regarding that variation.
My key tip to subbies is to even if it feels small and like a pain in the ass for admin, put in that variation anyway. Start with a simple email if you have to, if doing actual variation document is too big of a task today start with a written email saying hey builder project manager whoever the sort of project representative happens to be on the builder side just say hey tim letting you know that this scope we're going to proceed with it form is part of a variation to our subcontract something as simple as that and then you can address the actual variation and what they need to see under the subcontract maybe a day or two days later by the end of the week so that you have some breathing room to prepare it properly that single email takes five minutes to send and
can save you thousands like,000 100,000 whatever the claim would end up then boiling out to be can save you thousands so that is why it is so important to build that commercial discipline to create the habit put absolutely everything into riding my tip for you follow along drop a subscribe whatever platform you're watching us on I give out daily tips to help subbies from being screwed down and help them get paid more often.
So I'm Matt Kendi, thanks for watching, I'll see you in the next one.
General information about Australian subcontracts, not legal advice. Get advice on your own contract and facts.