CLAIMS NAL WORKS ARISING UU! OF VARIATIONS AND Al A Case of the Buitding Construction Industry in Kenya PS. Kisia BA(BI) Tons ily Registered Quantity Surveyor, McLarb, Claivns Consultant TLiFt up My eye? to tHe HILL2.. WHERE Dok? MY HeLp Come FROM...2Preamble The Construction Industry, today more than ever before is in a period of transition, Challenged from all sides to produce a better product more efficient and that responds to the Reeds of the aged, young, the disabled and the terrorist, the industry is now realizing that better management of resources is a key factor to both survival and future growth, Further, as the economy continues to tighten, in an environment of profit focus, it is now inevitable, more than ever before for the contract documents to focus on the importance of developing accurate estimates of the project inpuis namely; quantum of materials, plant, machinery, tools, labour, finance and most importantly, construction time. The possibili to ‘make profit will be improved with the contractor's ability to track down these inputs together with the conduct of the subcontractor. While the contract documents try to be accurate, the documents remain a projection of a future event, The Contractor and Developer (or owner) therefore makes assumptions when entering a construction contract. These assumptions do not necessarily coincide. When these assumptions are not fulfilled, a claim usually ensues This paper focuses on the assumptions on construction time based on quantum of work defined in the contract documents and the financial strain on the contractor resulting from time escalation on account of increased seope of work. A. THE CONTRACTOR'S ASSUMPTIONS ‘The contractor thet enters into @ construction contract with the owner makes certain assumptions:-1. that the owner has accurately and completely defined the entire scope of work. This enables the contractor to project costs and profits and successfully complete the project. Thio aooumption ia made on the basis thet plans and aperificalivus are complete and accurate, nothing being left to guess work. 2. that the owner hes fulfilled auy seyuitcutculs uovessay W pluveed with construction, Such requirements may include approval of plans, the ownership of the land upon which the project is to be cuustructed, dic land is fee of any obstructions, financing is secured, and everything isin place for construction. When assumptions are not fulfilled, extra-contract expenses are sure to arise resulting in claims and the contractor must be ready. 0 avoid these expenses, the contractor must understand, observe and maintain some clear rules to clearly put to focus the scope of work and ettecttvely execute the contract. @) Read and know the contract documents with respect to scope of work Reading and understanding the contract documents (the Agreement and Conditions of contract, Bills and Drawings) is a simple and surprisingly the most misunderstood task. Many contractors believe that the contract documents simply include the basie contract and he technical specification for the work. Many other contractors believe the Agreement is for the lawyers to know and understand as long as the contractor has the Drawings and the Bills. It is important to convince the construction supervisors that the Agreement is not overly complicated and are intended to provide them with ¢ roadmep to administer the contract, The Agreement will not construct the project but they will guide the construction of the project, The Conditions of Contract would stipulate rights and obligations upon which variations are ordered. They would specify any limitations on time, type of variations and capacity to order.