Variations Flashcards
Why do we need to make changes on projects in the construction industry?
- correct errors
- design errors
- allows for flexibility
- scope changes from new owners
What are architects instructions? Give some examples.
Power to issue instructions to the contractor to make changes, these must be in writing.
e. g. changes to design work
e. g. to postpone the works
If an AI is given orally what is the procedure? If a MC acts upon an oral instruction what are the consequences?
If given orally then it will have no immediate affect, unlike if it is given in writing. The architect should follow a verbal instruction by giving it in writing.
If MC acts upon it then work could be done that the client does not wish to pay for and there is no evidence that they asked for it doing.
Can a MC refuse to carry out an AI?
They have a right to ‘reasonably object’ to an instruction, and instructions can only be given as empowered by the contract.
What is a variation? Give some examples.
A variation is an alteration to the scope of works in a construction contract.
e. g. addition of work
e. g. omission of work
e. g. design alterations
e. g. changes to sequence of works
What are the valuation rules under JCT 2016?
- QS does not have to get the MC agreement
- approximate allowance should be made for preliminary items
If it is agreed that a variation is to be valued on a daywork basis can the time claimed be reduced if the PQS thinks that the contractor has taken too long? Why?
No QS has no right to change it. The contract has agreed that the contractor will be paid for the hours spent and the resources used, not for the hours that should have been spend.
Have to have evidence of them using more time.
If a MC submits daywork sheets for signing and the CA doesn’t sign them how does this affect the MC right to payment?
Not signing could be due to the CA disagreeing with what is on the timesheets - if so, the CA will need to provide evidence for reason in not signing.
If no agreement can be made, then the dispute resolution procedure in contract may have to be used.
If a rate in BQ is really low and is subject to a variation which increases the quantity is the MC able to increase his rate for the additional quantity? Why?
Yes - under the re-measurement contract the MC can increase the rate.
Is this different under NEC4?
Yes: 2 calculations - cost of work before compensation event and cost of work after the compensation event - the value of variation is the difference between the 2.
