(1)  The building contractor under a residential building work contract must ensure a variation document in respect of the contract complies with the formal requirements for a variation document.

Penalty:  In the case of –

(a) a body corporate, a fine not exceeding 300 penalty units; or

(b) an individual, a fine not exceeding 100 penalty units.

(2)  A variation document in respect of a residential building work contract complies with the formal requirements for a variation document if the document –

(a) is in English and is readily legible; and

(b) describes the variation; and

(c) where the variation was sought by the building contractor – states the reason for the variation; and

(d) where the variation will result in a delay affecting the residential building work to be performed under the contract – states the building contractor's reasonable estimate for the period of delay; and

(e) for a fixed-price contract – states the change of the contract price because of the variation, or how the change of the contract price is to be determined; and

(f) for a cost-plus contract – states a fair and reasonable estimate of the costs associated with the addition or omission the subject of the variation; and

(g) if the contract provides for progress payments – makes appropriate provision for payments under the contract to reflect any change, to the contract price, caused by the variation.