How does a subcontractor claim variations from a head contractor?
A subcontractor claims under its own subcontract, not the head contract. Give notice on time, prove the instruction and price the change, then send the claim to the head contractor.
Know your own contract
The subcontract sets your rights. It may pass down terms from the head contract, such as notice periods. The head contractor may have shorter time limits than you expect, because it must pass your claim up the chain.
Ask for a copy of the relevant head contract clauses if the subcontract refers to them.
Steps for the claim
- Get the instruction in writing from the head contractor.
- Give written notice within the time in the subcontract.
- Price the change with labour, plant, materials and margin.
- Attach the records that prove the work.
- Submit the claim and track the reply.
Payment rights
Every Australian state and territory has its own security of payment law that covers subcontractors, each with its own time limits. For example, Queensland uses the BIF Act. A payment claim is usually made within 6 months of the work or the contract time if shorter. The head contractor then has 15 business days to give a payment schedule.
If the head contractor does not pay, adjudication may be open. In Queensland an application is usually made within 30 business days of the payment schedule.
Related answers
Questions
Can the head contractor refuse because the client has not paid?
Many laws limit pay-when-paid terms. The rule depends on your state and your contract.
Do I need the head contractor's signature on a variation?
Often yes, if the subcontract requires a written direction. Get it before you proceed.
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