VARIATIONS – DON’T WORK FOR FREE !
Get all instructions confirmed in
writing before spending your money.
Check at the outset exactly who is
authorised to issue instructions to
you.
Check at the outset exactly who is responsible
for your payments.
Don’t spend money on the instructions of
“Little Tin Gods” (ie people with a lot to say but no contractual authority).
Don’t be fooled by the “PQS” excuse (eg
“the PQS has been too busy to look at your variations prices etc”).
Your contract is with the builder – NOT the PQS. Check your subcontract
conditions. The PQS is unlikely to be mentioned. So insist that the builder
addresses your variations as a matter of urgency.
Don’t use the bill of quantities as a
shopping list – remember that you are entitled
to a varied rate if the character and/or conditions of the work changes.
Remember that JCT 98 and DOM/1 etc allow
you to re-price original contract works where you can show that the character
and/or conditions have been affected by variations.
Include additional prelims expenditure
in your variations prices where appropriate.
VALUATION OF VARIATIONS
Improve your cash flow
Grasp your entitlements to “star rates”
Don’t accept bill rates for
varied work
Most Contract Conditions contain provisions whereby varied work,
and/or contract work affected by variations, qualifies for a revised rate if it
can be demonstrated that the work has changed in character and/or conditions from that reasonably apparent from the original contract
documents.
In practice, most Client's Quantity surveyors tend to overlook
these provisions and prefer to use the original Bill or Schedule rates rather
like a "Shopping List". This
is not the correct approach. However,
the initiative, in practical terms, must rest with the Contractor and/or
Sub-contractor. Leading text books emphasise that, in reality, a
substantial proportion of works carried out under variations do qualify for
re-rating!
Appended is a "Check
List" summarising factors which may be reasonably argued
as having changed the original character and/or conditions of
the work:
It may be seen from the
list, which is by no means exhaustive, that a substantial proportion of
variations in fact require re-rating to reflect the changed
character/conditions. Equally, it is
possible to show that areas of original contract work have been
similarly affected by variations.
By maximising these avenues during the currency of the works, it is
possible to expedite cash flow and to minimise the overspill balance of disruptive costs remaining to be processed through the medium
of a formal Loss and Expense Claim.
********************
Winter working.
Excessive number of
instructions.
Late and/or
"piecemeal" receipt of same.
Issue of variations
in disregard of agreed programmes.
Immediate/short
notice response required to instructions.
Special procurement,
planning, supervision arrangements.
Loss of trade
discounts due to purchase of small
quantities of materials.
Extra costs due to
transport and handling of ditto.
Increased costs
(fluctuations) on labour and materials.
"Piecemeal
working" in disregard of programmed sequences.
Special return visits
to areas in order to execute small quantities of work.
Special isolation of
individual electrical circuits in energised areas.
Special return visits
by Sub-subcontractors.
Special hire and/or
retention of plant and access
equipment.
Additional builder's
work.
Re-familiarisation on
return to completed areas.
Working in
exceptionally congested circumstances due to out of
sequence working.
Re-testing and
commissioning.
Working in areas
which have been occupied by Employer
Working out of normal
hours.
Obtaining access
permits for return visits to occupied areas.
Detours around site
to gain access to obstructed areas
e.g. blocked stairways
etc).
Keynote:
Don't use the Bill of Quantities as a
"shopping list".
John Russell
Contracts & Training Consultant
Cheshire CW4 7DP
Tel:
07770 986444
Email: swsubbie@globalnet.co.uk
Website: jrc0nsultant.co.uk
END OF “VARIATIONS”