Variations Flashcards
What is the meaning of the term “variation” as found in the ABIC contract?
A variation is a change to:
a. The scope of the works as contemplated by the contract documents and capable of being executed under this contract.
b. A dimension or level of the works.
c. The materials, workmanship or quality of any part of the works.
d. A detail of the works.
e. The order of precedence of the contract documents
What are the three elements that may be impacted by a variation? give examples of each
Delay in the critical path and therefore affecting the date of PC - such as an item which is delayed in transit substantially.
Cost of works and contract price - unforeseen change in material costs or a change in the specified material fitting or fixture.
Scope of works - an additional room added or a change in structure such as a fibreglass pool being changed to a concrete pool.
Does a variation always cause an adjustment to the contract? explain.
Varies. Where the variation is the result of a change made by the client, an instruction by the architect or due to a latent condition, inclement weather ‐ an adjustment to the date of PC with or without costs will result. If it is due to the builder’s negligence or not keeping with the terms of the contract (i.e. where the architect requests to open up works due to builder not allowing an inspection), then no variation to time and costs is incurred – the builder bears the risk.
Describe the process by which a variation and its effects are recorded + managed under the ABIC contract?
The architect will assess the variation provided by the contractor and will provide a written architect’s instruction to proceed or not. If instructed to proceed, the architect will need to issue standard proforma which includes: instruction to proceed with a variation, and where applicable, adjustment of time and/or Contract Price adjustment.
Are there any risks to the contractor if the variation process is not followed? Discuss
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Are there any risks to the owner if this process is not followed? discuss
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Are there any risks to the architect if this process is not followed? discuss
In breach of the CAA and their role as contract administrator/independent assessor and certifier.
Who assesses the value of variations and why?
Who approves variations and why?
The architect/contract administrator assesses the value of the variation by receiving the written variation notice from the contractor and inspecting this on site (if applicable). The architect is to act independently and give a genuine assessment of what they consider the value to be.
They also approve the variations.
Who assesses the impact of the variation and how is this done?
The architect assesses the variation. This is done by visiting site to assess the change, or obtaining relevant information in relation to the variation. Based on this information, the architect can then assess the validity of the variation and will submit to the contractor a written instruction to proceed or not with the variation.
Under an ABIC contract what is the difference between the term “variation” and a claim by the contractor to “adjust the contract”
A variation is a change to the scope of a works in a contract (where this is an addition or reduction), resulting in a change to the contract price.
A claim to adjust the contract is an adjustment in the contract price (often by variation) or the date for practical completion (i.e. weather delay – no change in contract price) – can be either or both.
