Variations in Construction Contracts
Changes in the scope of work in construction contracts are known as variations in construction and may involve substitutions, additions, and omissions. There are two basic causes of them: either things happen that are not related to the contract, or the design, scope, or circumstances change.
What is Variation
The variations in construction can be described by the following terms.
- Variations in construction is a change in the scope of the work or employer’s requirement. It could be a kind of necessity to alter or modify the design, and quality of the work as specified in the employer’s requirement.
- Addition, omission, or substitution of any work, alteration of the kind or standard of any of the materials or goods to be used in the work and removal from the site of any work executed or materials or goods brought by the contractor for work could also be led to variations.
The above causes could lead to the initial variation.
Variations in Construction – Process
A variation could be initiated by the engineer to the project before the taking-over certificate is issued. It could be an instruction to the contractor or a request to the contractor to submit a proposal.
When the engineer requests the contractor to submit the proposal, the contractor shall respond in writing as soon as practically possible, either giving the reasons why the is cannot comply or submitting the proposal.
The contractor’s proposal could include.
- Description of the proposed design or the work to be performed and the program for its execution.
- His proposal to modification to the original program
- Proposal to adjust the contract price
After receiving the proposal engineer shall respond with approval, disapproval, or comment. The contractor shall proceed accordingly.
When the engineer approves the contractor’s proposal on the variations in construction, he shall agree to the contractor’s cost and adjustment to the program. The engineer shall determine whether the submitted cost is reasonable.
Impact of Variation of Construction Project
Variation is inevitable in some construction projects. Though we don’t like to have variations in construction, it occurs due to many reasons as we discuss at the beginning of this article.
Some important facts about the variations in construction are as follows.
- It could increase the cost of construction and may have to agree with the new rates with the contractor for items that are not included in the original bill of quantities.
- Contractor may entitle to the extension of them if this work affects the project time frame.
- Variation could result in additional work for the consultant team as well.
- Disputes also may create with the variation especially when the contractor is not willing to accept the new variation.
- In addition, engineers disagreeing with the contractor’s cost and extension time on the variation could lead to disputes.
