Can the builder charge me extra even though we agreed to the quote they...

Hi Jurgen, if it is genuinely just for levelling the section, then the answer should be no. But often, unless a comprehensive geotech report was done prior to starting the build, the builder may find soft ground that needs more fill to make it sufficiently stable for building on. If this is the case, it is almost always specifically allowed for in the contract in terms of unknown “ground conditions”. You can probably Ctrl+F on that phrase in your contract to see how they describe it.

Hey Jurgen – yes they can do that as in your contract it will state (as David mentions) about unknown conditions and there are clauses that allow the builder to charge you extra. However they have to be reasonable and when it comes to earthworks $1,000 is fairly reasonable. In my case they charged me $16K extra at the end of the job, despite my questioning them at the time and saying I could not afford to go ahead with build if it cost more (should note that the geotech report said the ground was “all good” – it was in waimak which is solid ground). They told me it would cost me $500 more then essentially spent an extra $15,500 of my money without even asking me (no variation signed). Ended up in Court as I had to pay them because they locked me out of my house until I did!!! Then took them to Disputes Tribunal. Unfortunately the DT “adjudicator” knew diddly squat about building and as they always do awarded half. Was extremely angry and pretty much still am. Because of Court case they also never came to do any of the maintenance issues I brought up with them – but just couldn’t be bothered to fight them anymore….. 🙁

Should the builder of contacted the homeowner with a written variation stating what needs to be done before work commences. I also thought both parties were to sign the variation?

Yes, agree with Sarah. We had a very similar expense on our first build in Wellington for soft ground. In the scheme of things, especially given there were changes to positioning, this is small. You should always have 4-5% contingency set aside (preferably that the builder doesn’t know about) even with a fixed price contract for these types of things plus for the inevitable upgrades, curtains, landscaping etc. But all changes and variations should be formalised and signed by both parties, or at least agreed to before they commence via email.

Is that golden homes we are building with them in the bay.