Contract Practice - Level 3 (DoV)

Question 1

What is a Deed of Variation?

Answer 1

A deed is used to amend or vary an existing contract

Question 2

What did you advised on the Advantages / Disadvantages of a DoV over a new Contract?

Answer 2

Advantages of a DoV:

Time - it was quicker to instruct under a DoV than to draft and execute a new Contract

Time - Programme certainty could be attained by introducing sectional completion dates

Cost - Cost certainty could be attain with an adjustment to the contract sum

Cost - Less professional Fees than drafting and administering a whole new contract (2 nr Valuations, 2 Nr reports each month)

Disadvantages:

Wasn’t as ‘Clean’ as a new contract, keeping the packages of work completed separated, although this could be mitigated introducing sectional completion into the deed.

Question 3

You also advised on issuing an EAI preventing the Contractor from carrying out the existing works and entitle them to an EOT. What advise did you give?

Answer 3

To put it in to context, the ground floor works were included as a provisional sum in the existing bar fit out works contract as the works had not been designed.

It took the Client and their team longer than expected to design and approve the works for the ground floor and by time works were to be instructed they could no longer be incorporated into the existing programme.

I advised the client that if they were to instruct this via an EAI it could provide the opportunity to claim for EOT / L&A and that alternatives such as a DoV or new contract should be considered