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Construction

Australia


Variations
A comprehensive overview
August 2013



















For further information, please contact


Geoffrey Wood
Partner

Baker & McKenzie
Level 27, AMP Centre
50 Bridge Street
Sydney NSW 2000
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Jennifer Fitzalan
Seni-r A!!-ciate

Baker & McKenzie
Level 27, AMP Centre
50 Bridge Street
Sydney NSW 2000
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i

Table of contents
1. Introduction 3
1.1 General 3
2. Scope of works 4
2.1 General 4
2.2 Work not expressl in!l"#e# 5
2.3 $n!onsisten!ies in s!ope o% &ork provisions 6
2.4 'ills o% ("antities an# s!ope or &orks 8
3. Variation powers 8
3.1 )ee# %or variation !la"se 8
3.2 *xpress po&er +
3.3 *xpress po&er , t-e role o% t-e S"perinten#ent 11
4. Limits on power to direct variations 12
4.1 General 12
4.2 .i/in0 12
4.3 1ontra!t"al an# ot-er li/its on &-at !onstit"tes a variation 14
4.4 General po&er 15
4.5 1"/"lative e%%e!t o% /"ltiple variations 12
4.6 3/ittin0 Work 12
4.2 3/ittin0 &ork to 0ive to anot-er !ontra!tor 1+
4.8 4!!eleration 20
4.+ Dire!tin0 a variation %or t-e p"rpose o% !orre!tin0 #e%e!ts 21
. !ricin" or valuin" variations 22
5.1 1ontra!t provisions 22
5.2 3t-er 5al"ation !onsi#erations 23
5.2.1 6ates an# 7ri!es in!l"#e# in t-e 1ontra!t 23
5.2.2 6easona8le rates or pri!es 26
5.2.3 Da &orks 22
5.2.4 5al"ation "n#er t-e !ontra!t a%ter per%or/an!e o% t-e variation 28
5.3 Disp"tes re0ar#in0 val"in0 variations 28
#. $ela%s and variations 3&
6.1 General 1o//ents 30
6.2 Will t-e variation !a"se #ela9 31
6.3 5al"ation o% variation an# t-e in!l"sion :or ot-er&ise; o% #ela !osts 31
6.4 Dela an# #isr"ption !ost o% variations as part o% a 0lo8al !lai/ 34
6.5 S"8se<"ent !lai/s %or #ela #"e to /"ltiple variations 35
6.6 4"to/ati! entitle/ent to *3. i% variation pre%or/e# a%ter t-e #ate %or
pra!ti!al !o/pletion9 35
6.2 )oti%i!ation as a !on#ition pre!e#ent to /ake a !lai/ 36

ii

'. Is it or isn(t it a variation) 3'
2.1 $ntro#"!tion 32
2.2 $/possi8le or i/pra!ti!a8le #esi0n 32
2.3 =atent !on#itions 38
2.4 1-an0e in <"antities in a 'ill o% ("antities>S!-e#"le o% 6ates 1ontra!t 38
2.4.1 'ills o% ("antities ?variations? 38
2.4.2 S!-e#"le o% 6ates ?variations? 41
2.5 1ontra!tor provi#es *xtra or 'etter ("alit Work 42
2.6 .-e S"perinten#ent #ire!ts Work as a 5ariation &-i!- is part o% t-e
3ri0inal S!ope o% Work 42
2.2 @nintentional variations 43
2.2.1 Dire!tion to 1-an0e t-e 1ontra!tor?s Met-o# o% Workin0 43
2.2.2 S"8stit"tes an# options in t-e spe!i%i!ation 45
2.2.3 4ssentin0 to a 1onta!tor?s proposal 48
2.2.4 *xtra &ork o"tsi#e t-e !ontra!t - "nA"st enri!-/ent an#
%r"stration 4+
2.8 5ariations an# *stoppel 53
8. *ormal re+uirements of variation clauses 4
8.1 W-at are t-e9 54
8.2 Bail"re to !o/pl &it- pro!e#"ral o8li0ations 56
8.3 W-at 1onstit"tes C&ritin0C9 5+
8.3.1 Dra&in0 5+
8.3.2 Si0na0e 5+
8.3.3 7a/ent 1erti%i!ates 60
8.3.4 =etters an# Min"tes o% Site Meetin0 60
8.4 6e!over in t-e a8sen!e o% &ritin0 60
8.4.1 $/plie# pro/ise to pa 60
8.4.2 Separate 1ontra!t 61
8.4.3 Binal !erti%i!ates 62
8.4.4 Waiver 62
8.4.5 *stoppel 63
8.4.6 S"8se<"ent ar8itration 63
,iblio"rap-% #


3

1. Introduction
1.1 .eneral
.-e p"rpose o% t-is paper is to !onsi#er so/e o% t-e /an iss"es involvin0 variations
t-at !an arise in t-e !o"rse o% !ontra!t a#/inistration. 4 8etter "n#erstan#in0 o% t-ose
iss"es s-o"l# lea# to a /ore e%%i!ient sste/ o% !ontra!t a#/inistration an# a
re#"!tion in #isp"tes.
.-e ter/ ?variation? in t-e !ontext o% !onstr"!tion !ontra!ts !an /ean t&o t-in0sD
na/elE
:a; a ?variation? or !-an0e to t-e !ontra!t ter/sF an#
:8; t-e narro&er an# &ell kno&n /eanin0D t-at isD a p-si!al ?variation? or !-an0e
to t-e &ork :<"antit or <"alit; re<"ire# to 8e !arrie# o"t "n#er t-e !ontra!t.
.-is paper &ill #is!"ss ?variations? /eanin0 a variation to t-e &ork re<"ire# to 8e
!arrie# o"t "n#er t-e !ontra!t.
5ariations in !onstr"!tion !ontra!ts are one o% t-e /ost !o//on !a"ses o% #isp"tes
8et&een parties.
1
S"!- #isp"tes o%ten revolve aro"n# t-e %ollo&in0 iss"esE
2

Was t-e &ork in <"estion &it-in or o"tsi#e t-e s!ope o% &ork9
Di# t-e parties !o/pl &it- t-e pro!e#"ral re<"ire/ents "n#er t-e !ontra!t
re0ar#in0 #ire!tin0 an# !lai/in0 %or a variation9 an#
W-at is a %air or reasona8le val"e o% t-e variation &ork9
Given t-e iss"es &-i!- /a arise in relation to variationsD t-e /ere per%or/an!e o%
?extras? or ?variations? /a not ne!essaril 0ive rise to t-e 7rin!ipal -avin0 a lia8ilit to
pa %or s"!- &ork. Generall t-e 1ontra!tor &ill -ave to #e/onstrate t-at t-e s"8Ae!t
&ork &as o"tsi#e t-e s!ope o% &orks an# t-at all pro!e#"ral re<"ire/ents &ere
!o/plie# &it-.
$n t-is paperD ?7rin!ipal? is "se# to /ean t-e 3&ner or 7roprietorD ?1ontra!tor? to /ean
t-e 8"il#er an# ?S"perinten#ent? to /ean t-e person in t-e !ontra!t 0iven t-e role o%
a#/inisterin0 t-e !ontra!t. Di%%erent ter/s /a 8e "se# &-en reportin0 parti!"lar
!ases.
4 re%eren!e to a ?Se!tion? is a re%eren!e to a se!tion in t-is paper.
.-e stan#ar# %or/s o% 0eneral !on#itions o% !ontra!t re%erre# to in t-is #o!"/ent areE
:a; 4"stralian Stan#ar#s 2124-1++2 :/S 2124;F
:8; 4"stralian Stan#ar#s 4000-1++2 :/S 4&&&;F
:!; )ational 7"8li! Works 1o"n!ilD *#ition 3 :1+81; :0!12;F an#
:#; 7ropert 1o"n!il 71-1 1++8 :!231;.

1
Go-n DorterD Variations, Building and Construction LawD Septe/8er 1++0D 156 at 156.
2
Do"0 GonesD Building and Construction Claims and Disputes, :1
st
e#D 1++6;D 5+.

4

2. Scope of works
2.1 .eneral
W-en t-e 1ontra!tor !ontra!ts &it- t-e 7rin!ipal to !arr o"t !onstr"!tion &orksD t-e
7rin!ipal is entitle# to t-e per%or/an!e o% t-ose &orks in t-e /anner an# to t-e extent
pres!ri8e# 8 t-e !ontra!t. Si/ilarlD t-e 1ontra!tor is entitle# to t-e !ontra!t s"/ in
t-e /anner an# as /a 8e a#A"ste# 8 t-e !ontra!t. .-e !ontra!t allo!ates risksD
in!l"#in0 t-e !ost o% per%or/an!e o% t-at &ork. Di%%erent !ontra!ts allo!ate t-ose risks
#i%%erentl. Ho&everD in t-e stan#ar# %or/ !onstr"!tion !ontra!ts t-e ori0inal !ontra!t
s"/ is "s"all %ixe# in relation to an ori0inal s!ope o% &ork.
4s a variation is a !-an0e to t-e &ork :<"antit or <"alit; re<"ire# to 8e !arrie# o"t
"n#er t-e !ontra!tD it is essential to 8e a8le to !learl i#enti% t-e &ork t-e 1ontra!tor
is re<"ire# to per%or/ "n#er t-e !ontra!t in or#er to #eter/ine i% t-ere -as 8een a
!-an0e an# t-e extent o% t-at !-an0e.
Stan#ar# %or/ !onstr"!tion !ontra!ts in!l"#e provisions &-i!- ai/ to provi#e #etails
o% t-e &ork to 8e per%or/e# 8 t-e 1ontra!tor.
!231
1la"se 2.1 re<"ires t-e 1ontra!tor to i//e#iatel !o//en!e to !arr o"t t-e
1ontra!tor?s 4!tivities.
.-e C1ontra!tor?s 4!tivitiesC is #e%ine# as all t-in0s or tasks &-i!- t-e 1ontra!torD is
or /a 8eD re<"ire# to #o to !o/pl &it- its 1ontra!t o8li0ations.
0!12
1la"se 2 provi#es t-at t-eE
CWorksC /eans t-e &-ole o% t-e &ork to 8e exe!"te# in a!!or#an!e &it- t-e 1ontra!tD in!l"#in0
all variations provi#e# %or 8 t-e 1ontra!tD &-i!- 8 t-e 1ontra!t are to 8e -an#e# over to t-e
7rin!ipalF
C&ork "n#er t-e 1ontra!tC /eans t-e &ork &-i!- t-e 1ontra!tor is or /a 8e re<"ire# to
exe!"te "n#er t-e 1ontra!t an# in!l"#es all variations.... an#
C.-e 1ontra!tC /eans... all t-e #o!"/ents &-i!- !onstit"te or evi#en!e t-e %inal an# !on!l"#e#
a0ree/ent 8et&een t-e 7rin!ipal an# t-e 1ontra!tor....
@n#er !la"se 3.2D &-ere pa/ent is on a ="/p S"/ 8asisD t-e 1ontra!tor s-all
exe!"te t-e &ork an# per%or/ ?-is? o8li0ations "n#er t-e 1ontra!t.
/S 2124
1la"se 2 provi#es t-atE
C&ork "n#er t-e 1ontra!tC /eans t-e &ork &-i!- t-e 1ontra!tor is or /a 8e re<"ire# to
exe!"te "n#er t-e 1ontra!t an# in!l"#es variationsF an#
CWorksCD /eans t-e &-ole o% t-e &ork to 8e exe!"te# in a!!or#an!e &it- t-e 1ontra!tD in!l"#in0
variations provi#e# %or 8 t-e 1ontra!tD &-i!- 8 t-e 1ontra!t is to 8e -an#e# over to t-e
7rin!ipal.
@n#er !la"se 3.1D t-e 1ontra!tor /"st exe!"te an# !o/plete all &ork "n#er t-e
1ontra!t.

5

/S 4&&&
1la"se 2 an# 1 provi#eE
.-e 1ontra!tor s-all !arr o"t an# !o/plete W@1 in a!!or#an!e &it- t-e 1ontra!t an#
#ire!tions a"t-orise# 8 t-e 1ontra!t.
CW@1C /eans t-e &ork &-i!- t-e 1ontra!tor is or /a 8e re<"ire# to !arr o"t an# !o/plete
"n#er t-e 1ontra!t an# in!l"#es variationsD re/e#ial &orkD !onstr"!tion plant an# te/porar
&orks.
B"rt-erD /ore #etaile# an# te!-ni!al #es!riptions o% t-e &ork to 8e per%or/e# are
"s"all in!l"#e# in t-e spe!i%i!ationsD #ra&in0sD 8ills o% <"antities an# s!-e#"les o%
rates %or/in0 part o% t-e !ontra!t. Given t-e o%ten #etaile# nat"re o% t-ese #ra&in0sD
spe!i%i!ations an# ot-er te!-ni!al #o!"/ents an# as t-ese #o!"/ents are o%ten
revise# lea#in0 "p to t-e %or/ation o% t-e !ontra!tD in!onsisten!ies 8et&een t-e
!ontra!t 0eneral !on#itions an# t-e #ra&in0s an# spe!i%i!ations or 8et&een t-e
#ra&in0s an# spe!i%i!ations o%ten o!!"r.
3
See Se!tion 2.3 %or a 8rie% #is!"ssion o% a
!ase on t-is iss"e.
Des!ri8in0 t-e s!ope o% &ork in an l"/p s"/ #esi0n an# !onstr"!t !ontra!tD "n#er
&-i!- t-e 1ontra!tor -as an o8li0ation to 8ot- #esi0n an# !onstr"!t t-e proAe!t :D,1
1ontra!t;D presents parti!"lar #i%%i!"lties an# et i% t-e &ork is not #es!ri8e#
a!!"ratel an# in so/e #etailD it /a present iss"es &-en #eter/inin0 &-et-er a
parti!"lar ite/ o% &ork represents a !-an0e to t-e ori0inal s!ope o% &ork.
)ot&it-stan#in0 t-e a8oveD "n#er a D,1 1ontra!tD it is "s"all t-e !ase t-at t-e
s!ope o% &ork is %ar less !lear #"e to t-e nat"re o% t-e !ontra!t. .-e s!ope o% &ork is
"s"all 8ase# on t-e 7rin!ipal?s preli/inar #esi0n. 3ne o% t-e !onse<"en!es o% t-is
is t-at it is per-aps /ore #i%%i!"lt to #eter/ine i% t-e s!ope o% &ork -as 8een varie#
!o/pare# to a stan#ar# !onstr"!t onl !ontra!t. .-is iss"e is #is!"sse# in Se!tion
3.1.
$n Barter v Mayor of Melbourne,
4
1-ie% G"sti!e Sta&ell #e%ine# variations as C&orks
&-i!- are not !onte/plate# 8 t-e parties at t-e ti/e o% t-e exe!"tion o% t-e
!ontra!tI..C. .-"sD t-e initial !riti!al <"estion in !onsi#erin0 t-e s"8Ae!t o% variations
is &-et-er or not t-e per%or/an!e o% an ite/ or pro!ess o% &ork is on a proper
interpretation o% t-e !ontra!t alrea# in!l"#e# in t-e 1ontra!tor?s per%or/an!e.
2.2 1ork not e4pressl% included
Ho&everD t-e 1ontra!tor not onl -as an o8li0ation to !o/plete t-e &ork as expressl
#es!ri8e# in t-e 1ontra!t 8"t also ot-er &ork &-i!-D alt-o"0- not #es!ri8e#D is
ne!essaril re<"ire#. .-is is a ?!o//on sense? r"le as aptl #e/onstrate# in t-e
o%ten <"ote# Williams v Fitzmaurice
5
!ase. $n t-at !aseD t-e 1ontra!tor "n#ertook to
8"il# a -o"seD #r an# %it %or o!!"pation. .-e spe!i%i!ation expressl note# %loor Aoists
8"t %aile# to expressl /ention %loorin0. .-e 1ontra!tor ar0"e# t-at t-e provision o%
%loorin0 !onstit"te# a variation. .-e 1o"rt -el# t-at alt-o"0- %loorin0 &as not
spe!i%i!all /entione#D
it &as !learl to 8e in%erre# %ro/ t-e lan0"a0e o% t-e spe!i%i!ation t-at t-e plainti%% &as to #o t-e
%loorin0 an# t-is &as ne!essaril in!l"#e# in t-e o8li0ation to !o/plete a -o"se #r an# %it %or
o!!"pation.

3
Do"0 GonesD Building and Construction Claims and Disputes, :1
st
e#D 1++6;D 5+.
4
:1820; 1 4=G6 160;.
5
:1858; 152 *6 20+.

6

$n Waler v Council of t!e Municipality of "andwic
6
t-e 1o"rt -el# t-at &orks
!o/prisin0 t-e !onstr"!tion o% a !on!rete retainin0 &all in a spe!i%ie# position
ne!essaril re<"ire# t-e re/oval o% t-e se!on# -al% o% a san# 8ank preli/inar to t-e
!onstr"!tion o% t-e &all. .-e plans :&-i!- #i# not %or/ part o% t-e 1ontra!t; s-o&e#
t-e san# 8ank to 8e 1.8 /etres &i#e &-en in %a!t is &as 3.2 /etres &i#e 6o0ers G
-el#E
$ take t-e !ontra!t to 8e an entire !ontra!t to 8"il# t-e &all %or a %ixe# pri!e. $t &as not to
re/ove an 0iven <"antit o% eart- an# t-en 8"il# t-e &allI $t is t-e !onstr"!tion o% a !on!rete
retainin0 &all &-i!- is to 8e pre%or/e# in a!!or#an!e &it- t-e plan an# spe!i%i!ation. .-e
!ontra!t is not to per%or/ t-e &ork set o"t in an planF all &ork ne!essaril re<"ire# %or t-e
!onstr"!tion /"st 8e #one &-et-er set o"t in t-e plan or not.
H"#son
2
statesE
$t is s"00este# t-at &-erever it !an reasona8l 8e in%erre# %ro/ t-e !ontra!t #es!ription t-at
ot-er "n#es!ri8e# &ork &ill 8e ne!essar to a!-ieve !o/pletion or a satis%a!tor an# e%%e!tive
res"lt &it-in t-e ter/s o% t-e !ontra!tor?s express or i/plie# o8li0ations as to #esi0nD
&ork/ans-ip an# /aterialsD t-en in t-e a8sen!e o% so/e in#i!ation to t-e !ontrar t-e
"n#es!ri8e# &ork &ill 8e in!l"#e in t-e pri!e.
)ot&it-stan#in0 t-e a8ove &ell esta8lis-e# !o//on la& prin!ipleD /an !ontra!ts
seek to rein%or!e t-is prin!iple 8 in!l"#in0 provisions &-i!- re%le!t t-is 0eneral
prin!iple. Bor exa/pleD !la"se 8.1 o% )7W1 provi#esE
Minor ite/s not expressl /entione# in t-e 1ontra!t 8"t &-i!- are ne!essar %or t-e
satis%a!tor !o/pletion an# per%or/an!e o% t-e &ork "n#er t-e 1ontra!t s-all 8e s"pplie# an#
exe!"te# 8 t-e 1ontra!tor &it-o"t a#A"st/ent to t-e 1ontra!t S"/.
2.3 Inconsistencies in scope of work provisions
$n!onsisten!ies 8et&een t-e #i%%erent parts o% t-e relevant !ontra!t provi#in0 #etails
o% t-e &ork to 8e per%or/e# !an provi#e t-e 8asis %or variation !lai/ #isp"tes.
Most stan#ar# an# non stan#ar# %or/s o% !ontra!t !ontain provisions %or resolvin0
in!onsisten!es an# a/8i0"ities in a !ontra!t. So/e exa/ples are as %ollo&sE
/S 2124
1la"se 8.1 re<"ires noti!e to 8e 0iven to t-e S"perinten#ent o% t-e in!onsisten!D
a/8i0"it or #is!repan!. .-e S"perinten#ent is t-en to #ire!t t-e 1ontra!tor as to
t-e interpretation to 8e %ollo&e#.
$% !o/plian!e &it- t-e #ire!tion !a"ses t-e 1ontra!tor to in!"r /ore or less !osts
:t-an !o"l# -ave 8een anti!ipate# at t-e ti/e o% ten#erin0;D t-e #i%%eren!e is to 8e
assesse# 8 t-e S"perinten#ent an# a##e# to or #e#"!te# %ro/ t-e !ontra!t s"/.
/S 4&&&
4S 4000 is si/ilar to 4S 2124.
1la"se 8.1 re<"ires noti!e to 8e 0iven to t-e S"perinten#ent o% t-e in!onsisten!D
a/8i0"it or #is!repan!. .-e S"perinten#ent is t-en to #ire!t t-e 1ontra!tor as to
t-e interpretation to 8e %ollo&e#.
$% !o/plian!e &it- t-e #ire!tion !a"ses t-e 1ontra!tor to in!"r /ore or less !ostsD t-e
#i%%eren!e is to 8e assesse# 8 t-e S"perinten#ent an# a##e# to or #e#"!te# %ro/
t-e !ontra!t s"/.

6
:1+2+; 30 S6 :)SW; 84 at pa0e 82.
2
#udson$s Building and %ngineering Contracts :10t- e#D 1+20;D 50+.

2

.-is !la"se 0ives %lexi8ilit to t-e S"perinten#ent :!o/pare# to !la"ses stip"latin0 an
or#er o% pre!e#en!e; as t-e are not !onstraine# 8 -avin0 to %ollo& an or#er o%
pre!e#en!e.
0!12
=ike 4S 4000D !la"se 8.1 re<"ires t-e S"perinten#ent :on 8ein0 noti%ie# o% an
a/8i0"itD #is!repan! or in!onsisten!; to #ire!t t-e 1ontra!tor as to t-e
interpretation to 8e %ollo&e#. .-e !la"se #oes not -ave an express provision entitlin0
t-e 1ontra!tor to 8e !o/pensate# %or an a##itional !osts it /a in!"r as a res"lt o%
t-e #ire!tion. Ho&everD t-e 1ontra!tor /a atte/pt to !lai/ on t-e 8asis t-at t-e
#ire!tion iss"e# 8 t-e S"perinten#ent &as a #ire!tion to per%or/ a variation.
!2 31
1la"se 6.10 o% 71-1 expressl re%ers to a/8i0"itiesD #is!repan!ies or in!onsisten!ies
8et&een t-e #o!"/ents /akin0 "p t-e 1ontra!t or 8et&een t-e 1ontra!t an# an
Desi0n Do!"/entation. .-e !la"se t-en provi#es a n"/8er o% prin!iples &-i!- /"st
8e %ollo&e# to resolve t-e iss"e as %ollo&sE
:a; t-e or#er o% pre!e#en!e in t-e 1ontra!t 7arti!"lars &ill applF
:8; &-ere t-e a/8i0"itD #is!repan! or in!onsisten! is 8et&een t-e 1ontra!t
an# an part o% t-e Desi0n Do!"/entationD t-e -i0-er stan#ar# is to prevail
8"t i% t-is #oes not resolve t-e a/8i0"itD #is!repan! or in!onsisten!D t-e
1ontra!t &ill prevailF an#
:!; t-e 1ontra!t 4#/inistrator is to instr"!t t-e 1ontra!tor as to t-e !o"rse to
a#opt.
40ainD t-e !la"se #oes not expressl -ave provision %or t-e 1ontra!tor to !lai/ an
!o/pensation as a res"lt o% t-e #ire!tion 0iven 8 t-e 1ontra!t 4#/inistrator.
$n a##ition to !ontra!t provisions #ealin0 &it- t-e resol"tion o% an a/8i0"itiesD
#is!repan!ies or in!onsisten!ies in !ontra!tsD t-e !o//on la& -as #evelope# r"les
re0ar#in0 t-e resol"tion o% s"!- iss"es. So/e o% t-ese r"les are as %ollo&sE
:a; t-e interpretation is to 8e #eter/ine# o8Ae!tivelD t-at isE
t-e as!ertain/ent o% t-e /eanin0 &-i!- t-e #o!"/ent &o"l# !onve to a reasona8le person
-avin0 all t-e 8a!k0ro"n# kno&le#0e &-i!- &o"l# reasona8l -ave 8een availa8le to t-e
parties in t-e sit"ation in &-i!- t-e &ere at t-e ti/e o% t-e 1ontra!tF
8

:8; t-e !ontra!t to 8e !onsi#ere# in !ontext an# as a &-ole :8a!k0ro"n# o% t-e
transa!tionD its ai/ an# t-e !o//on ass"/ptions o% t-e parties;F
+

:!; !la"ses &ill 8e interprete# a0ainst t-e part &-o #ra%te# t-e #o!"/ents
:!ontra pro%erente/ r"le;
10
F
:#; a /ore reasona8le interpretation &ill 8e pre%erre# in !ase o% a/8i0"itF
11

:e; a literal /eanin0 &ill not 8e applie# i% t-is lea#s to an a8s"r# res"ltF
12


8
Maggbury &ty Ltd v #afele 'ustralia &ty Ltd :2001; 185 4=6 152 at J11K.
+
'delaide City Corp v 'ltermann :1+82; 46 S4S6 186
10
Maye v Colonial Mutual Life 'ssurance (ociety Ltd :1+24; 35 1=6 14D 26-22 alt-o"0- "niversal appli!ation -as 8een #o"8te# )o!nson v
'merican #ome 'ssurance * Co :1++8; 1+2 1=6 266D 224-225 :Lir8 G;.
11
Lewis Construction +%ngineering, &ty Ltd v (out!ern %lectric 'ut!ority of -ueensland :1+26; 50 4=G6 26+.
12
Westpac Baning Corp v .anzone &ty Ltd :2000; + '76 12D 521.

8

:%; t-e express /ention o% one t-in0 &ill 8e rea# as /eanin0 t-e ex!l"sion o%
anot-erF
13

:0; -an# &ritten or espe!iall a##e# !la"ses &ill take pre!e#en!e over t-e
stan#ar# %or/F
14

:-; !rosse# o"t &or#s /a 8e !onsi#ere#F
15
an#
:i; &-ere t-ere is a list %ollo&e# 8 0eneral &or#sD t-en t-e 0eneral &or#s &ill 8e
restri!te# 8 re%eren!e to t-e sa/e !lass o% t-in0s previo"sl /entione#.
16

)ot&it-stan#in0 provisions in !ontra!ts settin0 o"t t-e pro!e#"re to 8e %ollo&e# in
!ase o% an in!onsisten! an# t-e a8ove note# !o//on la& r"les or prin!iplesD
#isp"tes /a still arise over t-e parti!"lar interpretation o% a provision espe!iall
0iven t-at si0ni%i!ant s"/s o% /one /a 8e at stake. Bor exa/pleD in / #awins *
(ons &ty Ltd v (abemo &ty Ltd
12
a #isp"te arose over t-e /eanin0 o% !on#ition 3 in a
letter <"ali%in0 t-e 1ontra!tor?s ten#er :&-i!- %or/e# part o% t-e !ontra!t; an# t-e
spe!i%i!ation. Giles G sai#E
W-et-er or not !on#ition 3 #i# /o#i% t-e spe!i%i!ation #epen#s "pon t-e !onstr"!tion o% all t-e
provisions in t-e !ontra!t in t-e !ir!"/stan!es s"rro"n#in0 its /akin0D 8"t at %irst si0-t it &as
inten#e# t-at !on#ition 3 s-o"l# -ave so/e e%%e!t 8 &a o% /o#i%i!ation o% t-e ot-er
#o!"/ents !o/prisin0 t-e !ontra!t.
.-e 1o"rt %o"n# t-at !on#ition 3 /o#i%ie# t-e spe!i%i!ation in a &a &-i!- /eant t-e
1ontra!tor !o"l# !lai/ !o/pensation %or a##itional ex!avation &ork.
2.4 ,ills of 5uantities and scope or works
W-ere t-e !ontra!t is a l"/p s"/ !ontra!t an# a 8ill o% <"antities is re%erre# to or
state# to 8e a !ontra!t #o!"/entD iss"es /a arise as to t-e nat"re an# extent o% t-e
s!ope o% &orks i% t-e 8ill o% <"antities is in!o/plete or ina!!"rate an# &-et-er t-e
#o!"/ent is /eant to #etail t-e s!ope o% &orks.
$t is 8e!a"se o% t-e /an iss"es t-at !an arise !on!ernin0 8ills o% <"antities t-at a
C)o Disp"te 6eportC
18
in 1++0 re!o//en#e# t-at 8ills o% <"antities not 8e "se# in
l"/p s"/ !ontra!ts. .-at C)o Disp"te 6eportC !on!l"#e#E
1+

t-e level o% !lai/>#isr"ption over '(?s J8ills o% <"antitiesK &arrante# avoi#an!e o% provision o%
'(?s 8 prin!ipalsD an# i% "se &as "navoi#a8leD t-en '(?s 8e properl exe!"te#.
)eit-er t-e Depart/ent o% De%en!e?s s"ite o% !ontra!ts nor 71-1 in!l"#e provisions %or
8ills o% <"antitiesD possi8lD %or t-e reasons raise# in t-e C)o Disp"te 6eportC 6eport.
6e%er to Se!tion 2.4 &-i!- %"rt-er #is!"sses 8ills o% <"antities.
3. Variation powers
3.1 0eed for variation clause
$t &o"l# 8e rare %or a !onstr"!tion !ontra!t to 8e per%or/e# &it-o"t so/e variation to
t-e ori0inal s!ope o% &ork. Bor exa/pleD a variation /a 8e ne!essar to ens"re t-at
t-e !o/plete# &orks are %it %or t-e p"rpose %or &-i!- t-e &ere inten#e#D to !orre!t

13
Maye v Colonial Mutual Life 'ssurance (ociety Ltd :1+24; 35 1=6 14F it is 8e!a"se o% t-is r"le t-at #ra%ts &ork o%ten provi#e Cin!l"#in0 :&it-o"t
li/itation;C.
14
#obbs Bell Ltd v &ola :1++5; 2 '76 14D 261F "ivat &ty Ltd v B*0 %lomar %ngineering &ty Ltd J2002K )SWS1 638.
15
Centrepoint Custodians &ty Ltd v Lidgerwood 1nvestments &ty Ltd J1++0K 56 411.
16
Brig!ton v 'ustralia and 0ew 2ealand Baning /roup Ltd J2011K )SW14 152.
12
@nreporte#D )SW S"pre/e 1o"rtD Giles GD 8 Mar!- 1+8+.
18
)7W1>)'11 Goint &orkin0 7artD M)o Disp"teE 7aper 1 N 6isk 4llo!ation :1++0; 14 4"stralian 1onstr"!tion la& )e&sletterD 8.
1+
$8i# at 112.

+

poor or ina#e<"ate spe!i%i!ationsD to !o/pl &it- !-an0es in la&D to !ope &it-
"n%oreseen site !on#itionsD to s"8stit"te /aterials no lon0er availa8le or to
in!orporate t-e latest te!-nolo0.
4!!or#in0lD variation !la"ses in !onstr"!tion !ontra!ts are essentialD as &it-o"t s"!-
!la"ses 1ontra!tors &o"l# -ave no o8li0ation to per%or/ an &ork &-i!- &as
#i%%erent to t-e &ork #es!ri8e# in t-e !ontra!t #o!"/ents.
20
B"rt-erD an insisten!e
8 t-e 7rin!ipal to var t-e &orks to 8e per%or/e# :a8sent or o"tsi#e a variation
!la"se; /a provi#e a 8asis %or t-e 1ontra!tor to !lai/ t-at t-e 7rin!ipal -a#
rep"#iate# t-e !ontra!t.
Bor exa/pleD in %ttridge v Vermin Board of t!e District of Murat Bay
21
t-e s!ope o%
&ork re<"ire# t-e 1ontra!tor to ere!t a ver/in-proo% %en!e alon0 a line spe!i%ie# in
t-e !ontra!t #o!"/ents. $n t-e !o"rse o% per%or/an!e o% t-e &orkD t-e 1ontra!tor
&as #ire!te# to #epart %ro/ t-e line spe!i%ie# in t-e !ontra!t in !ertain areas. .-e
1ontra!tor re%"se#. .-ere &as no variation !la"se in t-e !ontra!t. .-e 1o"rt -el#
t-atD 8 t-e 7rin!ipal insistin0 t-at t-e 1ontra!tor #epart %ro/ t-e spe!i%ie# line :an#
&it--ol#in0 pa/ent &-en t-e 1ontra!tor re%"se# to !o/pl &it- t-e #ire!tion;D t-e
7rin!ipal -a# 8rea!-e# t-e !ontra!t an# t-e 1ontra!tor &as entitle# to re%"se to
!ontin"e to per%or/ t-e !ontra!t an# !lai/ a reasona8le pri!e %or t-e &ork !o/plete#
8"t not pai# %or. )apier G -el#E
22

...t-e #o!"/ents in evi#en!e 8e%ore "s #o not !on%er "pon t-e #e%en#ant 'oar# an ri0-t to
insist "pon an #eviation %ro/ t-e a0ree# lineIan# i% t-e 'oar# &as insistin0 "pon an
interpretation o% t-e !ontra!t &-i!- &o"l# ena8le it to &it--ol# pro0ress pa/ents i% t-e plainti%%
s-o"l# re%"se to %ollo& a line &-i!- -e &as not o8li0e# to %ollo&D t-en pri/a %a!ie t-e plainti%%
&as entitle# to treat t-is attit"#e o% t-e #e%en#ant as a rep"#iation o% its !ontra!t.
.-e onl option availa8le to a 7rin!ipal to -ave a variation per%or/e# :a8sent a
variation !la"se; &o"l# 8e to enter into a separate a0ree/ent %or t-at &ork :&-ere t-e
parties &o"l# -ave to a0ree on t-e &ork to 8e per%or/e# an# t-e pri!e an# ti/e %or
!o/pletion o% t-at &ork;
23
. S"!- a sit"ation p"ts t-e 1ontra!tor ar0"a8l in a /ore
po&er%"l position t-an t-e 7rin!ipal re0ar#in0 ne0otiatin0 a pri!e %or t-e variation.
4!!or#in0lD a variation !la"se ena8les t-e 7rin!ipal to #ire!t a variation as a
!ontra!t"al entitle/ent &it-o"t t-e a0ree/ent o% t-e 1ontra!tor. .-e extent o% an
s"!- entitle/ent is #epen#ent on t-e !ontent o% t-e s"8Ae!t variation !la"se an#
so/e !o//on la& prin!iples.
.-e ri0-ts an# o8li0ations o% t-e 7rin!ipal an# t-e 1ontra!tor &it- respe!t to
variations &ill #epen# on t-e ter/s o% t-e relevant !ontra!t.
3.2 64press power
4s note# a8oveD &it-o"t an express entitle/ent in a !ontra!t to #ire!t a variationD t-e
7rin!ipal &ill -ave no entitle/ent to so #ire!t t-e 1ontra!tor. 4s a res"ltD /ost
!onstr"!tion !ontra!ts !ontain express provisions 0ivin0 t-e S"perinten#ent :or t-e
7rin!ipal or 8ot-; t-e entitle/ent to #ire!t variations.
.-e extent o% t-e S"perinten#ent?s :or t-e 7rin!ipal?s; po&er to #ire!t t-e 1ontra!tor
to var t-e &orks #epen#s "pon t-e spe!i%i! provisions o% t-e variation !la"se in t-e
relevant !ontra!t.

20
's!well * 0esbitt v 'llen * Co J1+12K :1+12; 2 H"#son?s '1 :4t- *#n; 462 F %ttridge v Vermin Board of Murat Bay District :1+28; S4S6 124F
Vidovic! v (calzi +1+82; 3 '1= 85 an# H"#sons 4t- *#. 5ol 2D 462.
21
:1+28; S4S6 124F C!adma3 &lastics &ty Ltd v #ansen and 4uncen +(', &ty Ltd :1+84; 1 '1= 52D 58.
22
%ttridge v Vermin Board of t!e District of Murat Bay :1+28; S4S6 124D 131.
23
Wren v %mmett Contractors &ty Ltd :1+6+; 43 4=G6 213 at 216.

10

1ontra!t provisions "s"all #e%ine ?variation? &i#el to 0ive t-e S"perinten#ent
%lexi8ilit as to &-at t-e 1ontra!tor /a 8e #ire!te# to per%or/.
/S 4&&&
@n#er !la"se 36.1 o% 4S 4000 :!onstr"!t onl;D t-e S"perinten#ent /a var t-e
W@1 :&ork "n#er t-e !ontra!t; 8 an one or /ore o% t-e %ollo&in0E
:a; in!reaseD #e!rease or o/it an partF
:8; !-an0e t-e !-ara!ter or <"alitF
:!; !-an0e t-e levelsD linesD positions or #i/ensionsF
:#; !arr o"t a##itional &orkF or
:e; #e/olis- or re/ove /aterial or &ork no lon0er re<"ire# 8 t-e 7rin!ipal.
/S 2124
1la"se 40.1 in 4S 2124 1++2 is ver si/ilar to !la"se 36.1 o% 4S 4000.
0!12
Si/ilarlD !la"se 40.1 o% )7W1 is si/ilar to !la"se 36.1 o% 4S 4000 ex!ept t-at it
#oes not expressl in!l"#e t-e #e/olition or re/oval o% /aterial no lon0er re<"ire# 8
t-e 7rin!ipal.
!231
1la"se 1.1 o% 71-1 #e%ines a variation asE
an !-an0e to t-e Works in!l"#in0 an a##itionD in!reaseD #e!reaseD o/issionD #eletionD
#e/olition or re/oval to or %ro/ t-e Works.
H"#son
24
!onsi#ers it "nne!essar to /ake Crat!er laborious lists of matters w!ere
t!e power to vary may be e3ercised$ and t!at all t!at is re5uired is a power to add,
omit or substitute different wor +wit! even t!e last being covered by a combination or
omission and substitution,C. H"#son reasons t-at t-is "nne!essar ?ten#en!? is
8ase# on ol#er !ases &-ere t-ere &as a ten#en! to !onstr"e t-e ran0e o% /atters
as to &-at /a 8e #ire!te# stri!tl i% t-e lan0"a0e &as a/8i0"o"s. Ho&everD H"#son
#o"8ts &-et-er t-is &o"l# 8e so to#a.
)ot&it-stan#in0 express provisions in !ontra!ts entitlin0 t-e S"perinten#ent to #ire!t
variationsD t-ere is likel to 8e no i/plie# ter/ t-at t-e 7rin!ipal must e/plo t-e
1ontra!tor to !arr o"t a #esire# variation.
25
W-ilst t-ere are no 4"stralian !ases on
t-is pointD t-e 1ana#ian !ase #unin Coney Construction v 6(
26
#i# a##ress t-is
iss"e. D"rin0 t-e !onstr"!tion o% a #a/ t-e en!o"nterin0 o% a -i0-er &ater ta8le
/eant t-at a##itional &ork &as re<"ire# to over!o/e t-is iss"e. .-e a##itional &ork
&as not !overe# 8 t-e !ontra!t. .-e 0overn/ent o%%ere# t-e Main 1ontra!tor an
opport"nit to pri!e t-e &ork 8"t also o8taine# pri!es %ro/ ot-er spe!ialist %ir/s. .-e
0overn/ent an# t-e 1ontra!tor !o"l# not a0ree on a pri!e an# t-e 0overn/ent
!ontra!te# separatel &it- one o% t-e ot-er spe!ialist %ir/s. .-e 1o"rt -el# t-at t-e
&ork -a# not 8een provi#e# %or "n#er t-e ter/s o% t-e !ontra!t :as ar0"e# 8 t-e
1ontra!tor; an# t-at t-e 0overn/ent &as not in 8rea!- o% t-e !ontra!t %or not

24
#udson$s Building and %ngineering Contracts :12t- e#D 2010;D50+.
25
$8i# at 2+3 re%errin0 to /ilbert Blasting * Dredging Co v " :1+01; 2 1an *x 6 221.
26
J1+22K 461 Be#. 6ep. 2# 1220 &-i!- applie# t-e /"!- earlier !ase o% Lovell v 6( 5+ 1t. 1$ 4+47

11

#ire!tin0 t-e 1ontra!tor to per%or/ t-e &ork. .-e presen!e o% an Cot-er !ontra!tor?
!la"se in t-e !ontra!t &as a part o% t-e 1o"rt?s reasonin0 pro!ess.
$72 2ontracts
Wit- respe!t to D,1 1ontra!tsD !are%"l !onsi#eration s-o"l# 8e 0iven to t-e variation
provisions. Bor exa/pleD as t-e 1ontra!tor is responsi8le %or t-e #esi0n :an#
t-ere%ore lia8le i% t-e #esi0n is not in a!!or#an!e &it- t-e 1ontra!tor?s !ontra!t"al
o8li0ations;D t-e 1ontra!tor s-o"l# -ave t-e a8ilit to "nilaterall var t-e #esi0n.
W-ereasD t-e 7rin!ipal?s po&er to var t-e #esi0n s-o"l# 8e li/ite#.
Bro/ t-e 1ontra!tor?s perspe!tive it /a 8e appropriate to a/en# stan#ar# %or/
variation !la"ses &-i!- 0ive t-e S"perinten#ent :an# or t-e 7rin!ipal; t-e po&er to
instr"!t variations an# !o/pellin0 t-e 1ontra!tor to !o/pl &it- s"!- instr"!tions.
S"!- a/en#/ents /a re<"ire a variation #ire!tion to 8e !o/plie# &it- onl &-ere
t-e 1ontra!tor a0rees to t-e variation ot-er&ise t-e 1ontra!tor?s #esi0n /a 8e
!o/pro/ise#.
.-e 7rin!ipal /a also "nintentionallD 8 #ire!tin0 an# inter%erin0 in t-e #esi0n
pro!essD potentiall ass"/e so/e lia8ilit %or t-e 1ontra!tor?s #esi0n.
22

3.3 64press power 7 t-e role of t-e Superintendent
@n#er !onstr"!tion !ontra!tsD it is "s"al t-at t-e S"perinten#ent 0ives #ire!tions
re0ar#in0 variations. 4s t-e S"perinten#ent &o"l# not 0enerall -ave an i/plie#
a"t-orit to var t-e relevant !onstr"!tion !ontra!t :in!l"#in0 t-e s!ope o% &orks to 8e
per%or/e#;D it &o"l# 8e ne!essar to s-o& t-at an #ire!tions 0iven 8 t-e
S"perinten#ent to t-e 1ontra!tor to per%or/ a variation &ere &it-in t-e
S"perinten#ent?s express a"t-orit.
28

4s !an 8e seen %ro/ Se!tions 3.2D 4.2 an# 4.3D t-e relevant provisions o% 4S 2124
:!la"se 40;D 4S 4000 :!la"se 36;D 71 -1 :!la"se 11; an# )7W1 :!la"se 40; all
allo!ate t-e po&er to #ire!t a variation to t-e S"perinten#ent.
Ho&everD as it is t-e 7rin!ipal &-i!- re<"ires t-e variationD t-e S"perinten#ent /"st
a!t as t-e 7rin!ipal?s a0ent in !arrin0 o"t t-at po&er. $t &o"l# see/ t-at as 4S
2124D 4S 4000 71 - 1 an# )7W1 all 0ive po&er to t-e S"perinten#ent to #ire!t
variationsD t-at t-is &o"l# 8e s"%%i!ient a"t-orit %or t-e 7rin!ipal to 8e 8o"n# 8 &-at
t-e S"perinten#ent #ire!te# in respe!t o% variation.
$n 0ew 2ealand (tructures and 1nvestments Ltd v Mc8enzie,
2+
variation !lai/s 8 t-e
1ontra!tor &ere resiste# 8 t-e 3&ners on t-e 8asis t-at t-e *n0ineer -a# no
a"t-orit to #ire!t variations in ex!ess o% O5D000. .-e 1o"rt -el# t-e *n0ineer -a#
&i#e po&ers to #ire!t variations an# &-ile t-e %ixe# pri!e a0ree/ent &as inten#e# to
li/it &ork #es!ri8e# in t-e !ontra!tD t-is !o"l# not prevent pa/ent %or variations.
.-e S"perinten#ent a!tin0 as t-e 7rin!ipal?s a0ent &-en #ire!tin0 variations /a lea#
to t-e S"perinten#ent 8ein0 in a position o% !on%li!t in !ontra!ts &-ere t-e
S"perinten#ent is re<"ire# to a!t reasona8l an# in 0oo# %ait- to 8ot- parties. See %or
exa/pleD !la"se 20 o% 4S 4000 :&-ere t-e S"perinten#ent is re<"ire# to a!t
reasona8l an# in 0oo# %ait-; an# !la"se 23 o% 4S 2124 :&-ere t-e S"perinten#ent is
re<"ire# to a!t -onestl an# %airl;. )7W1 #oes not expressl provi#e -o& t-e
S"perinten#ent is to a!tD t-ere%oreD in a!!or#an!e &it- &erini Corp v Commonwealt!

22
Cable v #utc!erson Bros &ty Ltd :1+6+; 123 1=6 143.
28
's!well and 0esbit Ltd v 'llen * Co :1+12; H"#son?s '.1. :4t- e#; 462 :1.4.;.
2+
J1+2+K 1 )P=6 515 a%%ir/e# 8 t-e )e& Pealan# 1o"rt o% 4ppeal in 0ew 2ealand (tructures * 1nvestments v Mcenzie J1+83K )P=6 2+8.

12

+"edfern Mail %3c!ange Case,
30
t-e 1o"rt /a %in# t-at t-e S"perinten#ent in so/e
o% its roles is to a!t in t-e /anner expressl provi#e# %or in 4S 4000 or 4S 2124.
@n#er t-ose !ontra!tsD it /a not 8e ?%air? or ?reasona8le? to #ire!t t-e 1ontra!tor to
per%or/ a parti!"lar variation or it /a not 8e ?%air? or ?reasona8le? on t-e 7rin!ipal t-at
t-e 1ontra!tor per%or/ t-e parti!"lar variation. $n s"!- instan!es t-e S"perinten#ent
&ill %in# itsel% in a #i%%i!"lt sit"ation.
.-e S"perinten#ent "n#er 71-1 &o"l# not %a!e s"!- a !on%li!t as "n#er !la"se 3.1 o%
t-at !ontra!tD t-e 1ontra!t 4#/inistrator :S"perinten#ent; is to exer!ise all its
%"n!tions as a0ent o% t-e 3&ner an# not as an in#epen#ent !erti%ierD assessor or
val"er.
Ho&everD even &-ere !ontra!ts in!l"#e !lear provisions #ealin0 &it- t-e entitle/ent
o% t-e 7rin!ipal :an# t-e S"perinten#ent; to #ire!t an# val"e variations an# &it-o"t an
express provision re<"irin0 s"!- a #ire!tion to 8eD %or exa/pleD %air an# reasona8le or
0iven in 0oo# %ait-D !o"rts -ave #e/onstrate# a &illin0ness to intervene. SeeD %or
exa/pleD WMC "esources Ltd v Leig!ton Contractors &ty Ltd
31
an# Beaufort
Developments +01, Ltd v /ilbert 9's! +01,.
32

4. Limits on power to direct variations
4.1 .eneral
1la"se 40.1 o% )7W1 also provi#es t-at no variation &ill invali#ate t-e 1ontra!t :an#
/an stan#ar# %or/ !ontra!ts are o%ten a/en#e# to in!l"#e s"!- a provision;.
Ho&everD not&it-stan#in0 s"!- provisions an# t-e &i#e po&ers 0iven to t-e
S"perinten#ent &it- respe!t to #ire!tin0 variationsD t-e !o//on la& p"ts li/its on
s"!- po&ers.
$n )*W )amieson Constructions Ltd v C!ristc!urc! City,
33
t-e 1o"rt <"ote# H"#son
34

re0ar#in0 t-e in!l"sions in !ontra!ts o% a !la"se provi#in0 t-at no variation &ill vitiate
t-e !ontra!t as %ollo&sE
'ot- t-e stan#ar# %or/s o% !ontra!t !ontain express an# per-aps so/e&-at opti/isti!
provisions t-at no variations s-all ?vitiate t-e !ontra!t?. $t is s"8/itte# t-at s"!- a provision
!annot as a /atter o% 8"siness e%%i!a! 8e taken at its %a!e val"eD an# /"st 8e s"8Ae!t to an
i/plie# li/itation o% reasona8leness.
W-ere a !ontra!t provi#es t-at t-e &ork "n#er t-e !ontra!t /a 8e varie#D an
insisten!e 8 t-e 7rin!ipal t-at t-e !ontra!tor o8serve a #ire!tion &-i!- is not &it-in
t-e s!ope o% t-e variation po&erD &illD in t-e !ir!"/stan!es o% t-e !aseD !onstit"te a
rep"#iation o% t-e !ontra!t.
35
$t is t-ere%ore essential to !onsi#er t-e para/eters o%
an variation po&er.
4.2 Timin"
'ase# on t-e !o//on la&D in t-e a8sen!e o% an express ter/s !overin0 t-e perio#
&it-in &-i!- t-e S"perinten#ent is entitle# to #ire!t t-e 1ontra!tor to per%or/ a
variationD variations /a not 8e #ire!te# a%ter t-e &orks -ave a!-ieve# pra!ti!al

30
J1+6+K 2 )SW6 530D 536.
31
:1+++; 15 '1= 4+F in t-is !aseD t-e %"ll !o"rt o% t-e S"pre/e 1o"rt o% Western 4"stralia %o"n# t-at a 7rin!ipal?s po&er to val"e variations ?in its
sole #is!retion? &as still s"8Ae!t to a re<"ire/ent to a!t -onestlD 8ona %i#e an# reasona8l :per $pp G at J46K;.
32
J1++8K 2 4ll *6 :H=; 228F $n Beaufort DevelopmentD t-e Ho"se o% =or#s !onsi#ere# t-e a8ilit o% a 1o"rt to revie& an# alter an 4r!-ite!t?s
!erti%i!ate in!l"#in0 &it- respe!t to variations. .-e !ase set o"t t-e #i%%i!"lties in-erent in s"!- arran0e/ents. $% t-e !erti%i!ate is %inal an# 8in#in0D
t-ere is a risk o% inA"sti!e to t-e 1ontra!tor #"e to t-e potential %or 8ias on t-e part o% t-e 4r!-ite!t or S"perinten#entD in t-eir !apa!it as an
e/ploee o% t-e 7rin!ipal :at 286;. $% t-e !erti%i!ate is s"8Ae!t to revie& 8 an ar8itratorD t-en it is likel also s"8Ae!t to revie& 8 t-e !o"rtsD in t-e
a8sen!e o% express lan0"a0e to t-e !ontrarD an# t-e "se%"lness o% t-e !erti%i!ate s"%%ers %ro/ a la!k o% !ertaint :at 286;.
33
1-rist!-"r!- Hi0- 1o"rtD 1ook G )o 4108>82 :8 )ove/8er 1+84;.
34
#udson$s Building and %ngineering Contracts :10t- 1+20; 54+.
35
Wegan Constructions &ty Ltd v Wodonga (ewerage 'ut!ority J1+28K 56 62.

13

!o/pletion. $n )*W )amieson Constructions Ltd v C!ristc!urc! City
36
:Jamieson;
t-e 1o"rt !on%ir/e# t-at t-e entitle/ent in t-e 0eneral !on#itions o% !ontra!t %or t-e
4r!-ite!t to #ire!t t-e 1ontra!tor to per%or/ a variation #i# not re/ain in %or!e a%ter
t-e !erti%i!ate o% pra!ti!al !o/pletion -a# 8een iss"e#. 1ook G -el#E
32

W-en t-at point is rea!-e# :!erti%i!ate o% pra!ti!al !o/pletion -as 8een iss"e#;D &it- all t-e
!onse<"en!es t-at res"lt an# &it- t-e a!kno&le#0/ent t-at is to 8e in%erre# %ro/ t-e !erti%i!ateD
$ a/ "na8le to see t-at it !an re/ain open %or t-e 4r!-ite!t to #ire!t so/et-in0 &-i!- &o"l#
re<"ire a !-an0e in t-e &ork 8 &a o% a##itionD re#"!tion or s"8stit"tion.
.-e #ate %or s"8/ission 8 t-e 1ontra!tor o% -is %inal a!!o"ntD an a!!o"nt to !over Ct-e &-ole o%
t-e WorksD &it- 5ariationsIC is relate# to t-e #ate o% pra!ti!al !o/pletion. .o / /in#D it &o"l#
8e <"ite in!onsistent &it- t-e provisions o% t-e !ontra!t 0enerall to interpret !la"se 25.1 as
per/ittin0 t-e #ire!tion o% variations a%ter t-e !erti%i!ate -as 8een 0iven.
.-e 1o"rt in )amieson !a/e to t-e !on!l"sion it #i# not&it-stan#in0 t-at t-e relevant
!ontra!t #i# not expressl state t-at variations !o"l# not 8e #ire!te# a%ter pra!ti!al
!o/pletion.
)amieson re%erre# to an earlier *n0lis- !aseD () * MM &rice v Milner
38
&-i!- &as
per-aps o% so/e interest in s"pportin0 t-e proposition t-at variations !annot 8e
or#ere# a%ter pra!ti!al !o/pletion in t-e a8sen!e o% an express provisions "nless
t-e 1ontra!tor is &illin0 to !arr t-e/ o"t.
Commissioners for (tate Ban Victoria v Costain 'ustralia Ltd
3+
ill"strates t-at iss"es
/a also arise &-ere a !erti%i!ate o% pra!ti!al !o/pletion -as not 8een iss"e# 8"t
&-ere t-e #ire!tion to per%or/ a variation &as 0iven a%ter &-at &o"l# -ave 8een t-e
#ate %or pra!ti!al !o/pletion 8"t &it-in t-e ti/e 0iven to t-e 1ontra!tor to !o/plete
t-e &orks as a res"lt o% an earlier extension o% ti/e -avin0 8een 0rante#. .-e
1ontra!tor !arrie# o"t t-is variation &ork 8e%ore t-e ot-er et to 8e !o/plete# &ork
&it-in t-e "nvarie# s!ope o% &ork. .-e 1ontra!tor s"8/itte# t-at t-e per%or/an!e o%
variation &ork a%ter t-e #ate o% pra!ti!al !o/pletion /"st !a"se #ela as no
!ontra!t"al ti/e &as le%t to !o/plete t-e &ork.
.-e 1o"rt -el# t-ere &as no a"to/ati! entitle/ent to an extension o% ti/e %or
variations 8ase# si/pl "pon t-e point o% ti/e at &-i!- t-e variation #ire!tion &as
iss"e#.
Ho&everD /ost stan#ar# %or/ !ontra!ts #o -ave express provisions #ealin0 &it- t-e
perio# &it-in &-i!- t-e 1ontra!tor /a 8e #ire!te# to per%or/ a variation.
1la"se 40 o% 4S 2124 expressl provi#es t-at t-e 1ontra!tor &ill not 8e 8o"n# to
exe!"te a variation #ire!te# a%ter 7ra!ti!al 1o/pletion "nless t-e variation is in
respe!t o% re!ti%i!ation &ork re%erre# to in 1la"se 32 :De%e!ts =ia8ilit;.
@n#er !la"se 36.1 o% 4S 4000D t-e S"perinten#ent /a onl #ire!t t-e 1ontra!tor to
!arr o"t a variation 8e%ore t-e Date o% 7ra!ti!al 1o/pletion.
71-1 #oes not expressl provi#e t-at a variation !annot 8e #ire!te# a%ter pra!ti!al
!o/pletion. Ho&everD !la"se 11.2 provi#es t-atE
W-et-er or not t-e 1ontra!t 4#/inistrator -as iss"e# a C5ariation 7ri!e 6e<"estC "n#er 1la"se
11.1D t-e 1ontra!t a#/inistrator /a at an ti/e prior to t-e Date o% 1o/pletion o% t-e Works
IIinstr"!t t-e 1ontra!tor to !arr o"t a 5ariation.
4!!or#in0lD it is likel t-at variations !annot 8e #ire!te# a%ter t-e Date o% 1o/pletion.

36
1-rist!-"r!- Hi0- 1o"rtD 1ook G )o 4108>82 :8 )ove/8er 1+84;.
32
$8i# at 21.
38
J1+68K 206 *G 313.
3+
:1+83; 2 41=6 1.

14

1la"se 40.1 o% )7W1 provi#es t-at t-e S"perinten#ent /a or#er t-e 1ontra!tor to
per%or/ a variation Cat an ti/e #"rin0 t-e pro0ress o% t-e &ork "n#er t-e 1ontra!tC.
CWork "n#er t-e 1ontra!tC is #e%ine# to /ean t-e &ork &-i!- t-e 1ontra!tor is or /a
8e re<"ire# to exe!"te an# in!l"#es all variationsD remedial workI.C. $t &o"l#
t-ere%ore appear t-at t-e S"perinten#ent /a #ire!t a variation a%ter 7ra!ti!al
1o/pletion.
Ho&everD i% a variation &as #ire!te# a%ter 7ra!ti!al 1o/pletion "n#er )7W1D it /a
Aeopar#ise t-e 7rin!ipal?s entitle/ent to li<"i#ate# #a/a0es as t-ere &o"l# 8e no
/e!-anis/ 8 &-i!- t-e S"perinten#ent !o"l# exten# ti/e %or per%or/an!e o% t-e
variationD as an extension o% ti/e "n#er !la"se 35.4 is /a#e to t-e #ate %or a!-ievin0
7ra!ti!al 1o/pletion an# 7ra!ti!al 1o/pletion &o"l# -ave alrea# 8een rea!-e#.
4##itionallD i% )amieson !o"l# not 8e s"%%i!ientl #istin0"is-e#D t-at !ase /a 8e
applie# to a si/ilar iss"e "n#er )7W1 to #eter/ine t-at a variation !o"l# not 8e
#ire!te# a%ter 7ra!ti!al 1o/pletion.
4.3 2ontractual and ot-er limits on w-at constitutes a variation
So/e provisions in t-e stan#ar# %or/ !ontra!ts ai/ to li/it t-e s!ope o% t-e variation
po&er.
/S 2124
@n#er !la"se 40.1 o% 4S 2124D t-e 1ontra!tor is onl 8o"n# to exe!"te a variation
&-i!- is &it-in t-e 0eneral s!ope o% t-e !ontra!t an#D !la"se 40.2 re%errin0 to
propose# variationsD provi#es t-at t-e 1ontra!tor /a a#vise t-at t-e variation !annot
8e e%%e!te#.
/S 4&&&
1la"se 36.1 li/its a variation to t-at &-i!- is o% Ca !-ara!ter an# extent !onte/plate#
8D an# !apa8le o% 8ein0 !arrie# o"t "n#erCD t-e provision o% t-e 1ontra!t. $t is
ar0"a8le t-at t-e variation po&er in 4S 4000 - 1++2 is /ore li/ite# t-at t-at "n#er 4S
2124.
0!12
)7W1 provi#es :as note# a8ove; t-at no variation &ill invali#ate t-e !ontra!t. .-is
t-ere%ore 0ives ver 8roa# po&er to t-e S"perinten#ent as to t-e tpe o% ?variations?
&-i!- /a 8e #ire!te#. Ho&everD "n#er t-e !o//on la& it is likel t-at t-is po&er
/a 8e li/ite# as #is!"sse# a8ove in Se!tion 4.1 an# 8elo& in Se!tions 4.4 to 4.2.
!231
71-1 #e%ines a variation asE
@nless ot-er&ise state# in t-e 1ontra!tD /eans an !-an0e to t-e Works in!l"#in0 an%
a##itionD in!reaseD #e!reaseD o/issionD #eletionD #e/olition or re/oval to or %ro/ t-e Works.
Je/p-asis a##e#K
.-is #e%initionD like )7W1 !onte/plates ver 8roa# po&er re0ar#in0 t-e tpe an#
siQe o% variation &-i!- /a 8e #ire!te#. Ho&everD like t-e provision in )7W1 it is
likel t-at t-is po&er &ill 8e li/ite# 8 t-e !o//on la&.
$% t-e !ontra!t #oes not !ontain an express li/itation on t-e variation po&erD t-e
1o"rts -ave nevert-eless /a#e it !lear t-at a li/it #oes exist. .-e %ollo&in0 !ases
provi#e exa/ples o% li/its pla!e# on variation po&ers.

15

4.4 .eneral power
"e C!ittic and .aylor,
40
a 1ana#ian !ase 0ives so/e 0"i#elines in !onsi#erin0
&-et-er an ite/ or &ork is or is not a variation or extra. .-ose 0"i#elines are as
%ollo&sE
:a; an ite/ spe!i%i!all provi#e# %or in t-e !ontra!t &as not an extraF
:8; i% t-e 1ontra!tor s"pplie# /aterial o% a 8etter <"alit t-an t-e /ini/"/ <"alit
ne!essar %or t-e %"l%il/ent o% t-e !ontra!t &it-o"t an instr"!tions - express or i/plie#
- %ro/ t-e 7rin!ipal to #o soD -e &as not entitle# to !-ar0e t-e extra !ost as an extraF
:!; i% t-e 1ontra!tor #i# &orkD or s"pplie# /aterials not !alle# %or 8 t-e !ontra!t :plans or
spe!i%i!ations; &it-o"t eit-er instr"!tions - express or i/plie# - %ro/ t-e 7rin!ipal or t-e
!onsent o% t-e 7rin!ipalD -e &as not entitle# to !-ar0e %or t-is a##itional &ork or
/aterials as an extraF an#
:#; i% t-e 1ontra!tor #i# &orkD or s"pplie# /aterialsD not !alle# %or 8 t-e !ontra!t 8"t on
instr"!tions - express or i/plie# - o% t-e 7rin!ipalD -e &as entitle# to !-ar0e %or s"!-
a##itional &ork or /aterials as an extra.
4s a 0eneral state/ent as to t-e s!ope o% a variation po&erD Bus! v .!e .rustee of
t!e .own * #arbour of W!ite!aven
41
-el# t-at a !ontra!t"al variation po&er is not
"nli/ite# an# t-at a variation !annot 0o 8eon# &-at &as !onte/plate# at t-e ti/e o%
t-e !ontra!t an# in Wegan Constructions &ty Ltd v Wodonga (ewerage 'ut!ority
42

:see 8elo& %or %"rt-er #etails; t-e 1o"rt -el# t-at a variation instr"!tion /"st 8e
reasona8le.
$n )* W )amieson Construction Ltd v C!ristc!urc! City Council
43
1ook G o8serve# in
relation to t-e prin!iple t-at it is a <"estion o% !onstr"!tion re0ar#in0 t-e extent o% a
variation po&er t-atE
.o / /in#D i% a variation /a %airl 8e sai# to 8e a !-an0e to t-e Works as t-ese #es!ri8e#D
&-et-er it !o/prise# ?an a##itionD re#"!tion or s"8stit"tion o% t-e Works or a%%e!ts t-e !arrin0
o"t o% t-e Works? :to <"ote t-e #e%inition; t-en it is a variation &-i!- t-e !ontra!tor is "n#er an
o8li0ation to !arr o"tF i% it is 8eon# t-at it is not.
$% t-e !ontra!t is %or a sin0le #&ellin0 -o"seD t-en t-at is &-at &ork is !overe# 8 t-e !ontra!t. $t
is not !-an0in0 t-e nat"re o% t-e !ontra!t 8 or#erin0 variation &-i!- &o"l# nor/all 8e
asso!iate# &it- a #&ellin0 -o"seF a se!on# #&ellin0 -o"se &o"l# 8e an entirel #i%%erent t-in0.
$n 'le3ander .!orn v Mayor and Commonality of London
44
=or# 1airnsD in
s"//arisin0 &-at &as or &as not a variationD opine# t-atE
J*Kit-er t-e a##itional an# varie# &ork &-i!- &as o!!asione# is t-e kin# o% a##itional an# varie#
&ork !onte/plate# 8 t-e !ontra!tD or it is not. $% it is t-e kin# o% a##itional or varie# &ork
!onte/plate# 8 t-e !ontra!tD -e /"st 8e pai# %or itID $%D on t-e ot-er -an#D it &as a##itional or
varie# &ork so pe!"liarD so "nexpe!te#D an# so #i%%erent %ro/ &-at an person re!kone# or
!al!"late# "ponD t-at is not &it-in t-e !ontra!t at all.
$n Wren v %mmet Contractors &ty Ltd,
45
t-e 1o"rt -el# t-at t-e 0eneral po&er to
#ire!t a variation &as -el# not to appl to a #ire!tion to per%or/ a##itional &ork &-i!-
-a# 8een e4pressl% e4cluded "n#er t-e !ontra!t not&it-stan#in0 t-at t-e !ontra!t
!ontaine# t-e "s"al !la"se t-at no variation &ill vitiate t-e !ontra!t.

40
:1+54; 12 WW6 653.
41
:1+88; 52 G' 3+2.
42
J1+28K 56 62.
43
@nreporte#D 1-rist!-"r!- Hi0- 1o"rtD 8 )ove/8er 1+84D 42.
44
:1826; 4pp. 1as. 120 per =or# 1airns at 122.
45
:1+6+; 118 1=6 6+2F 43 4=6G 213D 215.

16

$n Wegan Constructions &ty Ltd v Wodonga (ewerage 'ut!ority,
46
t-e 4"t-orit
entere# into t-ree s!-e#"le o% rates !ontra!ts &it- We0an 1onstr"!tions %or t-e
!onstr"!tion o% se&ers in a #evelop/ent. .-e iss"e !on!erne# t-e t-ir# !ontra!t
&-i!- &as to !onstr"!t 1+ /an-olesD &it- 22 len0t-s o% pipin0 totallin0 840 /etres.
.-e !ontra!t !ontaine# a provision &-i!- state# t-at C)o variation s-all vitiate or
invali#ate t-e !ontra!tC.
.-e &ork "n#er t-e %irst t&o !ontra!ts &as slo& #"e to #elas 8eon# t-e !ontrol o%
t-e 1ontra!tor. .-e 4"t-orit #ire!te# t-e 1ontra!tor to var t-e &ork 8 in!reasin0
t-e ex!avation re<"ire# 8 60RD in!reasin0 t-e se&er len0t- %ro/ 840 to 1181 /etres
:40R;D in!reasin0 t-e /an-oles %ro/ 1+ to 22 re<"irin0 +0R /ore !on!rete an# t-e
n"/8er o% -o"se !onne!tions %ro/ 42 to +1. .-e in!reases /eant t-e !ontra!t pri!e
in!rease# %ro/ approxi/atel O31D000 to O43D200. .-e 1ontra!tor so"0-t to in!rease
t-e ori0inal !ontra!t rates an# to appl t-ose in!rease# rates to t-e variation &ork.
.-e *n0ineer reAe!te# t-is !lai/. .-e 1ontra!tor ter/inate# t-e !ontra!t.
.-e 1o"rt -el#E
:a; t-e a/en#e# plans #i# not !onstit"te a variation per/itte# 8 t-e ori0inal
!ontra!tF
:8; Ct-e test o% t-e reasona8leness o% a variation is t-at o% o8Ae!tive assess/ent
8 an in#epen#ent 8-stan#erD na/el &-et-er t-e a/o"nt o% t-e in!rease or
#e!rease is s"!- t-at it &o"l# 8e A"#0e# 8 t-e 8-stan#er to 8e reasona8le
%or t-e 7rin!ipal to re<"ire t-e 1ontra!tor to s"8/it to t-e in!rease or
re#"!tion o% t-e total s"/ an# so to t-e in!rease or re#"!tion o% t-e &ork
involve#D an# to t-e per%or/an!e o% t-e extra or re#"!e# &ork on t-e !ontra!t
ter/sF
42
C
:!; C&-at /atters !an 8e taken into !onsi#eration in assessin0 reasona8leness9
4n ex-a"stive #e%inition !annot 8e atte/pte#. W-at $ -ave sai# in t-e last
para0rap- in#i!ates / opinion t-at in t-e !ase o% an in!rease t-e extent o%
t-e a##itional &ork !an 8e looke# atD an# not /erel t-e res"ltant /one
%i0"re &-i!- in /ost !ases &ill pro8a8l onl 8e a /eas"re o% t-e &ork. 3t-er
%a!tors &-i!- $ &o"l# re0ar# as relevant are t-e past -istor o% t-e !ontra!tD
t-e ti/e at &-i!- t-e variation is or#ere#D an# an !-an0es in !ir!"/stan!es
8et&een t-e #ate o% t-e !ontra!t an# t-e #ate o% t-e variationF
48
C
:#; t-e 1ontra!tor &as la&%"ll entitle# to re%"se to per%or/ t-e re/ain#er o% t-e
&ork "n#er t-e !ontra!t an# to stop &orkF
:e; t-e 4"t-orit?s re<"ire/ent t-at t-e 1ontra!tor s-o"l# !onstr"!t t-e &orks in
a!!or#an!e &it- t-e plans as re#esi0ne# !onstit"te# a rep"#iation o% t-e
!ontra!tF
:%; t-e 1ontra!tor -a# not &aive# t-is rep"#iation 8e!a"se it -a# !onsente# to
t-e variation 8 !arrin0 o"t t-e &ork "n#er t-e a/en#e# plan %or so/e little
ti/e. ="s- G -el#E
.-e %a!t t-at &ork &as #one is not in!onsistent &it- t-is vie&D 8e!a"se 8ot- parties
-a# %"ll kno&le#0e o% t-e %a!ts an# i% t-e o"t!o/e &as t-at t-e inten#e# !-an0e !o"l#
not 8e /a#e "n#er t-e variation !la"se an# so not 8e!o/e &ork "n#er t-e !ontra!tD it
&o"l# %all to 8e pai# %or on a <"ant"/ /er"it 8asisI. t-e 1ontra!tor &as keepin0 t-e
<"estion o% #e!ision open an# t-e 4"t-orit kno&in0 t-e %a!ts !o"l# not !lai/ to -ave
"n#erstoo# t-e/ #i%%erentl. $n /an !ases t-e %a!t t-e &ork &as #one &o"l# s-o&

46
J1+28K 56 62.
42
$8i# at 6+.
48
$8i# at 6+.

12

!onsent to #o it "n#er t-e !ontra!t. 3n t-e parti!"lar %a!ts o% t-is !ase it &as !lear t-at
t-e plainti%% &as not a0reein0 to #o t-e &ork as a task !overe# 8 an# to 8e pai# %or
"n#er t-e !ontra!t ter/s.
4. 2umulative effect of multiple variations
.-e !"/"lative e%%e!t o% a lar0e n"/8er o% variations /a !a"se a %"n#a/ental
!-an0e to t-e &orks 8eon# t-e li/its o% t-e po&er to #ire!t variations. $n )* W
)amieson Construction Ltd v C!ristc!urc! City Council
4+
t-e 1ontra!tor ar0"e# t-at
t-e n"/8er an# nat"re o% t-e variations #ire!te# &ere o% s"!- an extent to 8e &-oll
in!o/pati8le &it- t-e !ontra!t. G"sti!e 1ook -el#E
50

$n #eter/inin0 &-et-er a variation /a 8e #ire!te# or notD t-e %irst <"estions /"st 8e &-et-er it
!onstit"tes a !-an0e to t-e &orks &-i!- are #e%ine# as all &orks !overe# 8 t-e !ontra!t
#o!"/entsD an# !onse<"entlD it /"st 8e #e!i#e# in an parti!"lar !ase &-at t-e &orks are
reall sai# to 8eI
.o / /in#D i% a variation /a %airl 8e sai# to 8e a !-an0e to t-e &orks as t-e are #es!ri8e#D
&-et-er it !o/prises an a##itionD re#"!tion or s"8stit"tion to t-e &orks or a%%e!ts t-e !arrin0
o"t o% t-e &orkI.t-en it is a variation &-i!- t-e !ontra!tor is "n#er an o8li0ation to !arr o"tF i%
it is so/et-in0 8eon# t-atD t-en it is not.
Ho&everD in )amieson it appeare# t-e 1o"rt &as prepare# to a!!ept t-at t-e lar0e
n"/8er o% <"estiona8le variations per%or/e# 8e%ore pra!ti!al !o/pletion !o"l# 8e
!onsi#ere# vali# variations "n#er t-e !ontra!t as t-e 1ontra!tor -a# a0ree# :&it-o"t
o8Ae!tions; to per%or/ t-ose variations.
$n Balfour Beatty &ower Construction 'ust &ty Ltd v 8idston /oldmines Ltd,
51
t-e
1ontra!tor ar0"e# t-at variationsD representin0 an in!rease o% so/e 30R o% t-e
!ontra!tor?s &orkD !olle!tivel -a# t-e e%%e!t o% ren#erin0 t-e &ork essentiall #i%%erent
%ro/ t-e !ontra!t. .-e 1o"rt -el# t-at it &as a /atter o% !onstr"!tion o% t-e !ontra!t
&-et-er t-e &ork is in %a!t o"tsi#e t-e s!ope o% t-e !ontra!t. .-is !onstr"!tion /"st
8e s"!- as to ex!l"#e t-e extra &ork per%or/e# %ro/ its a/8it. .-e 1o"rt reasone#
t-at t-is &o"l# 8e #i%%i!"lt %or t-e 1ontra!tor to s-o& i% t-e &ork a!t"all per%or/e#
&as si/ilar to t-at re<"ire p"rs"ant to t-e !ontra!t re0ar#less o% &-et-er t-ere are
n"/ero"s variations to t-e &orks.
4.# 8mittin" 1ork
$n Melbourne #arbour .rust Commissioners v #ancoc,
52
t-e 7rin!ipal #ire!te# t-at a
si0ni%i!ant a/o"nt o% &ork 8e re/ove# %ro/ t-e 1ontra!tor?s s!ope o% &ork. .-e total
!ontra!t s"/ &as S130D000. .-e &ork #ire!te# to 8e re/ove# a/o"nte# to so/e
S55D8+4. .-e variation !la"se 0ave &i#e po&ers to t-e *n0ineer to o/it &ork as
%ollo&sE
.-e *n0ineer s-all -ave t-e po&er o% re<"irin0 %ro/ ti/e to ti/e t-e o/ission o% an parti!"lar
portion or portions o% t-e &orks o% t-is !ontra!tD an# o% an /aterials or ot-er /atter to 8e
s"pplie# 8 t-e !ontra!torD &-et-er s"!- o/itte# portion or portions /a or /a not 8e re<"isite
or ne!essar to !o/plete t-e &-ole o% t-e &orksD an# o% #e#"!tin0 t-e val"e t-ereo% %ro/ t-e
a/o"nt o% t-e !ontra!tD at rates to 8e %ixe# 8 t-e *n0ineer "n#er -is -an#D &-ose #e!ision
s-all 8e 8in#in0 an# !on!l"sive on all partiesF an# t-e !ontra!tor s-all -ave no !lai/ %or lossD
#a/a0eD 01? !o/pensation on t-is a!!o"nt ant-in0 -erein !ontaine# to t-e !ontrar
not&it-stan#in0.
)ot&it-stan#in0 t-e &i#t- o% t-e !la"seD t-e ar8itrator r"le# an# t-e Hi0- 1o"rt -el#
t-at t-e !la"se #i# not !over o/issions &-i!- !a"se# a %"n#a/ental !-an0e to t-e
!ontra!t. 6"s- G state# t-atE

4+
@nreporte#D 1-rist!-"r!- Hi0- 1o"rtD 8 )ove/8er 1+84.
50
$8i# at 42 -43.
51
J1+8+K 2 (# 105.
52
:1+22; 3+ 1=6 520.

18

$n / opinionD a %"n#a/ental alteration s"!- as t-is &as is not &it-in t-e !la"se. 4n alteration
&-i!- &-oll !-an0es t-e !-ara!ter o% t-e &ork is not an o/ission.
C!adma3 &lastics &ty Ltd v #ansen * 4uncen +(', &ty Ltd
53
&as a !ase in &-i!-
t-ere &as a Hea# 1ontra!t %or an ei0-t stor 8"il#in0 %or so/e 2.8 /illion #ollars
&-i!- provi#e# a s!-e#"le o% %inis-es in!l"#in0 t-e appli!ation o% C&all%lexC in a s/all
area. .-e Hea# 1ontra!tor entere# into a s"8!ontra!t &it- a s"8!ontra!tor to s"ppl
an# appl &all%lex. 4 variation &as #ire!te# "n#er t-e -ea# !onta!t &-ere8 t-e
&all%lex &as to 8e repla!e# &it- a s/oot- plaster an# paint %inis-. .-e -ea#
!ontra!tor so"0-t to pass #o&n t-is variation to t-e s"8!ontra!tor 8 o/ittin0 all
&all%lex &ork %ro/ its s!ope o% &ork. .-is -a# t-e e%%e!t o% #eletin0 all 8"t 1.26 per
!ent o% t-e &ork t-at t-e S"8!ontra!tor &as to per%or/.
$t &as s"8/itte# on 8e-al% o% t-e -ea# !ontra!tor t-at as t-e t-ir# partD t-ro"0- t-e
4r!-ite!tD -a# t-e po&er "n#er t-e -ea# !ontra!t to /ake variations to t-e ori0inal
&orks o% s"!- a nat"re as to re<"ire t-e o/ission o% virt"all all o% t-e S"8!ontra!tor?s
s"8!ontra!t &orkD t-enD in or#er to 0ive 8"siness e%%i!a! to t-e !o/plex net&ork o%
a0ree/ents t-at /"st 8e /a#e in or#er to ere!t a lar0e !it 8"il#in0D t-e s"8!ontra!t
/"st 8e rea# as !ontainin0 an i/plie# ter/ t-at t-e #e%en#ant &as not to 8e lia8le
"n#er it "nless an# "ntil t-e #e%en#ant &as 0iven a"t-orit "n#er t-e -ea# !ontra!t to
pro!ee# &it- t-e s"8!ontra!t &orks.
're8ener G -el#E
:a; t-e extent o% t-e variation a/o"nte# to a virt"al !an!ellation o% t-e s"8!ontra!t
an# &as not a"t-orise# 8 t-e s"8!ontra!t 8e!a"se it &as not a variation
&it-in t-e 0eneral s!ope o% t-e a0ree/entF
:8; t-e o/ission o% t-e &ork %ro/ t-e s"8!ontra!t &as a rep"#iation &-i!- &as
a!!epte# 8 t-e S"8!ontra!torF
:!; C)o ter/ s-o"l# 8e i/plie# into t-e s"8-!ontra!t &-i!- -a# t-e e%%e!t o%
!ontra#i!tin0 an express ter/ in it :variations &ere onl per/itte# C&it-in t-e
0eneral s!ope;C
54
. See para0rap- i//e#iatel a8ove %or t-e ter/ so"0-t to
8e i/plie#F an#
:#; C*ven i% t-ose &or#s -a# not appeare# in t-e !ontra!t :C&it-in t-e 0eneral
s!opeC;D $ &o"l# -ave -el# t-at t-e po&er in t-e #e%en#ant to re<"ire
in!reases or #e!reases in or o/issions %ro/ t-e s"8-!ontra!t &orks or
!-an0es in t-e !-ara!ter or <"alit o% an /aterial or &ork !o"l# not 8e
!onstr"e# as a po&er to !an!el virt"all t-e &-ole o% t-e s"8-!ontra!t &orks.
.-e !ontra!t 0ave po&er to /ake a#A"st/ents to t-e s"8-!ontra!t &orksD 8"t
not a po&er to !an!elD or virt"all to !an!elD t-e s"8-!ontra!t &orks. W-at &ill
a/o"nt to a variationD as #istin!t %ro/ a ne0ationD o% t-e s"8-!ontra!t &orks is
a /atter o% #e0ree an# !an onl 8e !onsi#ere# in t-e !ir!"/stan!es o% ea!-
in#ivi#"al !aseC.
.-e a8ove !ases &-i!- #e/onstrate t-e li/it on an express variation provision to
o/it &ork %ro/ t-e 1ontra!tor?s s!ope o% &ork are 8ase# on t-e e<"ita8le prin!iple
t-at t-e 1onta!tor is entitle# to per%or/ t-e &-ole o% t-e &ork "n#er t-e !ontra!t.
55

7S1-1 :t-e s"8!ontra!t &-i!- 8a!ks #o&n o8li0ations %ro/ 71-1;D provi#es t-at no
variation #ire!te# 8 t-e 1ontra!tor?s 6epresentative is to 8e re0ar#e# as a

53
:1+84; 1 '1= 52.
54
're8ener applie# Codelfa Construction &ty Ltd v7 (tate "ail 'ut!ority of 0ew (out! Wales :1+82; 14+ 1=6 332 an# B7&7 "efinery +Westernport,
&ty Ltd v7 (!ire of #astings 52 4=G6 20
55
Bet!le!em (ingapore &rivate Limited v Barrier "eef #oldings Limited :1+82; 1 41$== 6 :'18201035;F Carr v )' Berriman &ty Ltd :1+53; 8+
1=6 322 an# Commissioner for Main "oads v "eed * (tuart &ty Ltd :1+24; 131 1=6 328D 382.

1+

rep"#iation o% t-e s"8!ontra!tD even i% t-e variation re<"ires a##itional &ork o"tsi#e
t-e s!ope o% t-e S"8!ontra!tor?s 4!tivities or o/its s"8stantial &ork. .-is provision
ai/s to prote!t t-e 7rin!ipal %ro/ t-e ?1-a#/ax? sit"ation. Ho&everD s"!- provisions
-ave not 8een t-e s"8Ae!t o% an A"#i!ial !onsi#eration an# it /a 8e t-at s"!-
provisions &ill 8e s"8Ae!t to li/its /"!- like ot-er express variation provisions in
!ontra!ts.
$n Wren v %mmet Contractors &ty Ltd
56
it &as ar0"e# t-at t-e #ire!tion to per%or/
a##itional &ork &as a #e%en!e to t-e o/ission o% a s"8stantial a/o"nt o% &ork. .-is
ar0"/ent &as reAe!te# 8 t-e 1o"rt.
'ase# on t-e a8ove an# ot-er !asesD i% t-e o/ission o% &ork !onstit"tes a
%"n#a/ental 8rea!- o% !ontra!tD t-e 1ontra!tor /a ele!t to res!in# t-e !ontra!t an#
s"e %or #a/a0es or alternativel a <"ant"/ /er"it %or t-e &ork #one to t-e #ate o%
t-e res!ission.
52
.-e 1ontra!tor &o"l# 8e li/ite# to #a/a0es :loss o% pro%itsD
!ontri8"tions to over-ea#s et!; in t-e event t-e a!t or o/ission &as not serio"s
eno"0- to 8e re0ar#e# as a %"n#a/ental 8rea!-.
4.' 8mittin" work to "ive to anot-er contractor
Carr v )' Berriman &ty Ltd
58
esta8lis-e# t-e prin!iple t-at a8sent an express
provision in t-e !ontra!tD a 7rin!ipal is not entitle# to o/it &ork an# 0ive t-is o/itte#
&ork to anot-er !ontra!tor. .-e !ontra!t re<"ire# t-e '"il#er to !onstr"!t a %a!tor
8"il#in0 on 7arra/atta 6oa#D Ble/in0ton. 4 !la"se in t-e !ontra!t provi#e#E
.-e 4r!-ite!t /a in -is a8sol"te #is!retion an# %ro/ ti/e to ti/e iss"e &ritten instr"!tions or
&ritten #ire!tionsIin re0ar# to t-e Io/ission...o% an &ork. .-e '"il#er s-all %ort-&it- !o/pl
&it- all 4r!-ite!t?s $nstr"!tions.
.-e 1o"rt -el# t-at t-e !la"se &o"l# a"t-orise t-e 4r!-ite!tD &it-in !ertain li/itsD to
#ire!t t-at parti!"lar ite/s o% &ork in!l"#e# in t-e plans an# spe!i%i!ations s-o"l# not
8e !arrie# o"tF 8"t it &o"l# not a"t-orise -i/ to sa t-at parti!"lar ite/s so in!l"#e#
s-o"l# 8e !arrie# o"tD not 8 t-e '"il#er &it- &-o/ t-e !ontra!t &as /a#eD 8"t 8
so/e ot-er 8"il#er or !ontra!tor. S"!- a po&er !o"l# 8e !on%erre# onl 8 ver !lear
&or#s.
.-e Commissioner for Main "oads v "eed * (tuart &ty Ltd
5+
si/ilarl -el# t-at a
0eneral po&er to #ire!t t-e o/ission o% &ork alrea# pro/ise# to t-e 1ontra!tor #i#
not entitle a 7rin!ipal to #eprive t-e 1ontra!tor o% t-e 8ene%it o% t-at &ork alto0et-er
8 0ivin0 t-at &ork to anot-er !ontra!tor.
$n t-at !ase a #isp"te arose a%ter t-ere &as ins"%%i!ient soil on site to provi#e t-e
re<"ire# <"antit o% top soil on t-e e/8ank/ents an# else&-ere on t-e site. .-e
1ontra!t provi#e# a s!-e#"le o% rates %or t-e s"pplD -a"l an# sprea# o% top soil. .-e
!ontra!t spe!i%i!ations %"rt-er provi#e# t-at i% s"%%i!ient topsoil to /eet t-e
re<"ire/ents o% t-e &orks !o"l# not 8e o8taine# &it-in t-e ri0-t-o%-&aD t-e *n0ineer
ma% #ire!t t-e 1ontra!tor in &ritin0 to o8tain topsoil %ro/ ot-er approve# lo!ations
an# t-e ex!avation an# re/oval o% topsoil %ro/ s"!- lo!ations s-all 8e "n#er t-e
#ire!tion o% t-e *n0ineer. 1la"se 18 provi#e# t-at &ork !o"l# 8e o/itte# %ro/ t-e
s!ope o% &orks.
W-en t-e s-ort%all o% topsoil /ani%este# itsel%D t-e 1ontra!tor so"0-t toD 8"t t-e
1o//issioner re%"se# toD invoke t-ose provisions o% t-e !ontra!t &-i!- &ere

56
:1+6+; 118 1=6 6+2F 43 4=6G 213D 215.
52
Lodder v (lowery J1+04K 41 442.
58
:1+53; 8+ 1=6 322.
5+
:1+24; 131 1=6 328.

20

#esi0ne# to #eal &it- t-at event"alitF instea# t-e 1o//issioner a#opte# a <"ite
#i%%erent !o"rse. .-e 1o//issioner?s *n0ineer #e!i#e# t-atD rat-er t-an in!"r t-e
rate o% S3 per !"8i! ar#D -e &o"l# instea#D 8 t-e exer!ise o% &-at -e re0ar#e# as
po&ers availa8le to -i/ "n#er t-e !ontra!tD arran0e %or t-e &ork o% i/portin0 topsoil
on to t-e site to 8e #one 8 a t-ir# partD no #o"8t at !-eaper rates.
Step-en G -el#E
:a; CWere -e le0all entitle# to #o so :o/it &ork an# 0ive t-e o/itte# &ork to
anot-er !ontra!tor; it &o"l#D $ t-inkD r"n !o"nter to a !on!ept 8asi! to t-e
!ontra!tD na/el t-at t-e !ontra!torD as s"!!ess%"l ten#ererD s-o"l# -ave t-e
opport"nit o% per%or/in0 t-e &-ole o% t-e !ontra!t &orkCF
60

:8; C1la"se 18 is a !o//on eno"0- provision to 8e %o"n# in *n0ineerin0
!ontra!ts an# per/its o% t-e o/ission %ro/ ti/e to ti/e 8 t-e proprietor o%
portion o% t-e !ontra!t &orks. W-at it !learl eno"0- #oes not per/it is t-e
takin0 a&a o% portion o% t-e !ontra!t &ork %ro/ t-e !ontra!tor so t-at t-e
proprietor /a -ave it per%or/e# 8 so/e ot-er !ontra!torCF
61
an#
:!; t-e option availa8le to t-e *n0ineer as set o"t in t-e spe!i%i!ation &as eit-er to
-ave t-e 1ontra!tor !arr o"t t-e &ork :s"pplD -a"l an# sprea# o% top soil; or
to a8stain %ro/ an exer!ise o% -is po&er 8"t instea# ele!t "n#er !l. 18D t-e
o/issions !la"seD to o/it so /"!- o% t-e &ork o% topsoil pla!e/ent as /a 8e
ne!essar #"e to t-e #e%i!ien! o% on-site topsoil.
Bet!le!em (ingapore &rivate Ltd v Barrier "eef #oldings Ltd
62
-el# t-at it /akes no
#i%%eren!e -o& lar0e or s/all t-e o/ission o% &ork isD t-e 3&ner still -as no
entitle/ent to 0ive t-is o/itte# &ork to anot-er !ontra!tor.
)ot&it-stan#in0 t-e a8ove !asesD a 7rin!ipal /a nee# to o/it &ork :%or exa/ple
8e!a"se o% a %inan!in0 iss"e; 8"t s"8se<"entl %in# it is a8le to -ave t-at o/itte#
&ork per%or/e#. .-ere%oreD express provision s-o"l# 8e in!l"#e# in !ontra!ts to 0ive
t-e 7rin!ipal t-e entitle/ent to o/it &ork an# 0ive t-at o/itte# &ork to ot-ers.
Wit- t-e ex!eption o% 71-1D none o% t-e stan#ar# %or/ !ontra!ts -ave provisions
0ivin0 t-e 7rin!ipal t-at entitle/ent. 1la"se 11.4 o% 71-1 provi#esE
$% a 5ariation t-e s"8Ae!t o% a Dire!tion 8 t-e 1ontra!t 4#/inistrator o/its an part o% t-e
Works or a Sta0eD t-e 3&ner /a t-erea%ter !arr o"t t-is o/itte# &ork eit-er itsel% or 8
en0a0in0 3t-er 1ontra!tors.
4.8 /cceleration
*x!ept %or 71-1 :see !la"ses 10.13 to 10.15;D t-e stan#ar# %or/ !ontra!ts re%erre# to
in t-is paper #o not 0ive t-e S"perinten#ent t-e entitle/ent to #ire!t t-e 1ontra!tor to
a!!elerate t-e 1ontra!tor?s &ork :as a variation or ot-er&ise;. See %or exa/ple
Se!tion 3.1 o% t-is paper &-i!- sets o"t exa/ples o% variation provisions in a n"/8er
o% stan#ar# %or/ !ontra!ts &-i!- provisions #o not a"t-orise varin0 t-e #ate %or
!o/pletion earlier t-an t-at no/inate# in t-e !ontra!t :as exten#e# "n#er t-e
!ontra!t;.
4!!or#in0lD like ot-er %or/s o% variationD &it-o"t a/en#/ents to t-e stan#ar# %or/
!ontra!ts to in!l"#e an express entitle/ent to #ire!t t-e 1ontra!tor to a!!elerate t-e
&orkD t-e S"perinten#ent &ill -ave no s"!- entitle/ent an# t-e 1ontra!tor /a
A"sti%ia8l re%"se to a!!elerate its &orks &it-o"t 8ein0 in 8rea!- o% !ontra!t.

60
$8i# at 382.
61
$8i# at 383.
62
@nreporte#D )SW S"pre/e 1o"rtD 'rson GD 22 3!to8er 1+82F :1+82; 1 41$== 6.

21

4.9 $irectin" a variation for t-e purpose of correctin" defects
Most o% t-e stan#ar# %or/ !ontra!ts 0ive t-e S"perinten#ent t-e po&er to #ire!t a
variation in respe!t o% #e%e!tive &ork.
/S 2412
1la"se 30.3 provi#es t-at &it- #e%e!tive &orkD t-e S"perinten#ent /a #ire!t t-e
1ontra!tor to re/ove /aterialD #e/olis- t-e &orkD re!onstr"!tD repla!e or !orre!t t-e
/aterial or &ork or not to #eliver t-e /aterial or &ork to t-e site. 1la"se 30.3 in
!onA"n!tion &it- !la"se 40 :?5ariations? &-i!- provi#es t-at t-e S"perinten#ent /a
#ire!t a variation to t-e Works; /eans t-at in all likeli-oo# t-e S"perinten#ent /a
var t-e &ork to 8e per%or/e# to re!ti% t-e #e%e!t as t-en re<"ire# 8 t-e !ontra!t.
4S 2124 is silent as to -o& a variation to re!ti% a #e%e!t &ill 8e val"e#.
/S 4&&&
Si/ilar to 4S 2124D !la"se 2+.3 provi#es t-at t-e S"perinten#ent :in respe!t to
#e%e!ts; /a #ire!t t-e 1ontra!tor to re/ove /aterialD #e/olis- t-e &orkD
re!onstr"!tD repla!e or !orre!t t-e /aterial or &ork or not to #eliver t-e /aterial or
&ork to t-e site.
1la"se 2+.4 provi#es t-at t-e S"perinten#ent /a #ire!t t-at t-e 7rin!ipal a!!epts
t-e s"8Ae!t #e%e!tive &ork &-ere"pon t-ere &ill 8e a #ee/e# variation.
=ike 4S 2124D 4S 4000 #oes not -ave an express provision statin0 -o& a variation
#ire!te# in respe!t o% a #e%e!t is to 8e val"e#.
0!12
1la"se 32.2 re<"ires t-e 1ontra!tor to re!ti% #e%e!ts :o% t-e kin# re%erre# to in t-e
#e%inition o% 7ra!ti!al 1o/pletion; as soon as possi8le.
.-ere are no provisions entitlin0 t-e S"perinten#ent to #ire!t a variation &it- respe!t
to #e%e!tive &ork.
!2 3 1
1la"se +.6 ena8les t-e 1ontra!t 4#/inistrator to #ire!t a 5ariation to over!o/e a
#e%e!t :$efect Variation;D or an part o% it. 1la"se +.8 %"rt-er provi#es t-at t-e
1onta!tor /a onl !lai/ %or t-e variation i% t-e #e%e!t &as so/et-in0 %or &-i!- t-e
1ontra!tor &as not responsi8le.
71-1 provi#es a #etaile# provision as to -o& a variation to re!ti% a #e%e!t is to 8e
val"e#. @n#er !la"se +.+D i% t-e 1ontra!tor is responsi8le %or t-e #e%e!t t-e
1ontra!tor 4#/inistrator &ill #eter/ineE
:4; t-e val"e o% t-e De%e!t 5ariation assesse# as t-e val"e o% ot-er
variations are assesse#F an#
:'; t-e !ost o% re!ti%in0 t-e #e%e!t as re<"ire# 8 t-e 1ontra!t.
$% t-e val"e o% :4; is 0reater t-an :';D t-e 1ontra!t 7ri!e &ill 8e in!rease# an# i% t-e
val"e o% :'; is 0reater t-an :4;D t-e 1ontra!t 7ri!e &ill 8e #e!rease#.
3% all t-e stan#ar# %or/ !ontra!ts re%erre# to in t-is paperD 71-1 provi#es t-e 0reatest
%lexi8ilit re0ar#in0 t-e appli!ation o% variations po&ers to re!ti% a #e%e!t.

22

. !ricin" or valuin" variations
.1 2ontract provisions
Most stan#ar# %or/ an# 8espoke !ontra!ts !ontain provisions settin0 o"t -o&
variations are to 8e val"e#. .-e %ollo&in0 are so/e exa/ples o% s"!- !la"ses.
/S 2124
1la"se 40.3 re<"ires t-at variations are to 8e val"e# in a!!or#an!e &it- t-e pro!ess
set o"t in !la"se 40.5. .-at !la"se states t-at &-ere t-e !ontra!t provi#es t-at a
val"ation s-all 8e /a#e "n#er !la"se 40.5D t-e 7rin!ipal &ill pa or t-e 1ontra!tor
s-all pa t-e 7rin!ipal :as t-e !ase /a re<"ire; an a/o"nt as!ertaine# 8 t-e
S"perinten#ent as %ollo&sE
:a; $% t-e 1ontra!t pres!ri8es spe!i%i! rates or pri!es to 8e applie# in #eter/inin0 t-e val"eD
t-ose rates or pri!es s-all 8e "se#F
:8; $% 1la"se 40.5:a; #oes not applD t-e rates or pri!es in a 7ri!e# 'ill o% ("antities or
S!-e#"le o% 6ates s-all 8e "se# to t-e e4tent t-at it is reasonable to use t-em:
:!; .o t-e extent t-at neit-er 1la"se 40.5:a; or 40.5:8; applD reasonable rates or prices
s-all 8e "se# in an val"ation /a#e 8 t-e S"perinten#ent.
$nterestin0lD t-is provision %"rt-er provi#es t-at t-e !ost o% #ela or #isr"ption s-all
in!l"#e a reasona8le a/o"nt %or over-ea#sD 8"t not-in0 in respe!t to pro%it or loss o%
pro%it.
/S 4&&&
$n 4S 4000D !la"se 36.4:a; si/pli%ies t-e pri!in0 o% variations. $t provi#es t-at t-e
S"perinten#ent s-all pri!e ea!- variation "sin0 t-e %ollo&in0 or#er o% pre!e#en!eE
:a; 7rior a0ree/entF
:8; /pplicable rates or prices in t-e 1ontra!tF
:!; 6ates or pri!es in a pri!e# 'ill o% ("antitiesD S!-e#"le o% 6ates or S!-e#"le o% 7ri!esD
even t-o"0- not 1ontra!t #o!"/entsD to t-e e4tent t-at it is reasonable to use
t-emF an#
:#; 6easona8le rates or pri!esD &-i!- s-all in!l"#e a reasona8le a/o"nt %or pro%it an#
over-ea#s.
0!12
1la"se 40 provi#es t-at variations s-all 8e val"e# in a!!or#an!e &it- t-e rates in t-e
8ill o% <"antities. If t-ose rates are not applicableD ne& rates s-all 8e set 8
a0ree/entD or %ailin0 s"!- a0ree/entD as #eter/ine# 8 t-e S"perinten#ent.
!231
1la"se 11.3 sets o"t t-e %ollo&in0 #etaile# pro!e#"re 8 &-i!- t-e 1ontra!t 7ri!e is
in!rease# or #e!rease# %or variations #ire!te# 8 t-e 1ontra!t 4#/inistratorE
:a; &-ere t-e variation -as 8een t-e s"8Ae!t o% a 5ariation 7ri!e 6e<"estD t-e
1ontra!t 7ri!e /a 8e in!rease# or #e!rease# 8 t-e a/o"nt set o"t in t-e
!ontra!tor?s noti!eD i% it is a0ree# 8 t-e 3&nerF
:8; i% t-ere -as not 8een a 5ariation 7ri!e 6e<"estD or i% t-e a#A"st/ent propose#
8 t-e 1ontra!tor is not a0ree#D t-en t-e variation is pri!e# eit-erE

23

:i; a!!or#in0 to an a/o"nt #eter/ine# 8 t-e S"perinten#ent "sin0 an
rates or pri!es &-i!- appear in t-e !ost s!-e#"le or 8ill o% <"antities
:to t-e e4tent t-at t-e% are applicable or it is reasonable to "se
t-e/;F or
:ii; i% t-ere are no rates or pri!es &-i!- !an 8e "se#D t-e 1ontra!t 7ri!e
&ill 8e in!rease# or #e!rease# 8 a reasona8le a/o"ntE
:4; a0ree# 8et&een t-e partiesF or
:'; in t-e a8sen!e o% a0ree/entD #eter/ine# 8 t-e 1ontra!t
4#/inistrator.
.-e a8ove !la"ses also /ake provisions %or !ertain ot-er a/o"nts %or pro%itD
over-ea#s et! to 8e a##e# :or #e#"!te#; %ro/ t-e #eter/ine# val"e o% t-e variation.
.-e 1++0 C)o Disp"tes 6eportC re!o//en#s t-at t-e pri!e o% variations s-o"l# 8e
a0ree# 8e%ore t-e variation &ork is !o//en!e# 8 t-e 1ontra!tor to li/it #isp"tes in
relation to variations.
63

.2 8t-er Valuation considerations
.2.1 ;ates and !rices included in t-e 2ontract
1ontra!ts /a in!l"#e S!-e#"les o% 6ates or 'ills o% ("antities :an# pri!es; &-i!- as
note# a8ove :&-ere t-e rate or pri!e is reasonable an# or applicable; /a 8e "se#
%or val"in0 variations. 4!!or#in0lD s"!- rates or pri!es &ill not 8e "se# in all
!ir!"/stan!es. .-is /eans t-at #isp"tes re0ar#in0 i% t-e rate or pri!e is or is not
reasona8le or appli!a8le are likel to o!!"r.
S"!- rates or pri!es provi#e# in t-ese Cs!-e#"lesC or C8illsC are "s"all !o/posite
pri!es an# /a in!l"#e %or all /anner o% !osts &-i!- /i0-t 8e attri8"ta8le to
"n#ertakin0 t-e &ork. .-e pri!e &ill o%ten in!l"#e t-e #ire!t !ost o% la8o"rD plantD
/aterials an# s"8!ontra!tsD to0et-er &it- t-e !ost o% s"pervision an# ot-er in#ire!t
on-site !ostsD !orporate over-ea#s an# pro%it. Ho&everD 0enerallD t-e
S"perinten#ent #oes not kno& &-at is in!l"#e# in a pri!e or rate %or t-e vario"s !ost
!o/ponents. .o t-e extent t-at it is appropriate to "se t-e rates or pri!es in!l"#e# in
t-e !ontra!t %or si/ilar &orkD t-is /a not /atter.
.-e !riti!al iss"e is t-ere%ore #eter/inin0 &-et-er t-e provi#e# rate or pri!e is
appli!a8le or reasona8le. .-e #eter/ination o% t-at iss"e is "s"all o% !o//er!ial
i/portan!e %or 8ot- t-e 7rin!ipal an# t-e 1ontra!tor as i% t-e pri!e# ite/ in t-e C8illC or
Cs!-e#"leC &as -i0- or pro%ita8leD t-en t-e pri!e %or a variation :i% t-e sa/e rate is
applie#; &ill also 8e -i0- an# pro%ita8le an# vi!e versa.
.-e %ollo&in0 are so/e %a!tors &-i!- /a 8e relevant to #eter/ine &-et-er parti!"lar
&ork is or is or is not &ork to &-i!- t-e pri!e or rate provi#e# in t-e !ontra!t is or is
not reasona8le or appli!a8leE
64

:a; T-e sta"e of t-e pro<ect at w-ic- t-e work is re+uired to be performed
$t /a 8e t-at 8 re<"irin0 &ork to 8e #oneD at an earlier or later sta0e t-an
&as ori0inall !onte/plate# %or t-at parti!"lar tpe o% &orkD /akes it /ore
#i%%i!"lt an# expensiveD or on t-e ot-er -an# /"!- si/plerD t-an t-e &ork
!onte/plate# %or t-e 8ill ite/F

63
)7W1>)'11 Goint &orkin0 7artD 0o Dispute: (trategies for 1mprovement in t!e 'ustralian and Construction 1ndustry :1++0;D 15+.
64
Do"0 GonesD Building and Construction Claims and Disputes :1st e#D 1++6;D 22-28.

24

:8; T-e +uantit% of work performed
1ontra!tors /a ar0"e t-at an in!rease# a/o"nt o% &ork intro#"!es ele/ents
o% #i%%i!"lt or !ost &-i!- are not taken into a!!o"nt 8 t-e s!-e#"le rate or 8ill
pri!e so"0-t to 8e applie#. .-is is a #i%%i!"lt ar0"/ent to s"stain as /ost rates
or pri!es are inten#e# to appl to t-e &ork not&it-stan#in0 t-e a/o"nt o% t-at
ite/ &-i!- is re<"ire# to 8e per%or/e#.
M"!- &ill #epen# on t-e &or#in0 o% t-e 8ill or s!-e#"le 8"tD as !an 8e seen
%ro/ )o!n #olland +Constructions, &ty Ltd v Bell Bros &ty Ltd
65
:#is!"sse#
i//e#iatel 8elo&;D it is not eas to !onvin!e a !o"rt t-at it s-o"l# step
o"tsi#e a parti!"lar s!-e#"le or 8ill ite/ %or t-e p"rpose o% pri!in0 a variation
or %in#in0 t-at a variation -as 8een or#ere#D /erel 8e!a"se o% t-e a/o"nt o%
&ork involve#.
)o!n #olland +Constructions, &ty Ltd v Bell Bros &ty Ltd !on!erne# a
s!-e#"le o% rates !ontra!t 8ase# on a 8ill or <"antities &-i!- provi#e# t-at a
S"8!ontra!tor &as to ex!avate all eart- an# ro!k &ork %or t-e W"n0on0 Da/.
.-e !ontra!t expressl state# t-at t-e 8ill o% <"antities in t-e !ontra!t
represente# esti/ates onl. .-e S"8!ontra!tor %o"n# a%ter t-e re/oval o% t-e
over8"r#en t-at t-e /aterial to 8e re/ove# %ro/ t-e #a/ !ontaine# %ar /ore
ro!k t-an -a# 8een provi#e# %or in t-e 8ill o% <"antities an# %or t-at reason t-e
re/oval o% ro!k &as Cwor so different from t!at contemplated by t!e sub9
contract t!at it was not wit!in t!e sub9contract at allC. $t &as also #is!overe#
t-at t-e 8e#ro!k &as #eepl sea/e# an# %ra!t"re# &-i!- re<"ire# lar0e
<"antities o% 8e#ro!k to 8e ex!avate# "ntil a so"n# 8ase &as rea!-e#. .-e
S"8!ontra!tor !lai/e# an in!rease in t-e <"ote# rate %or t-e &ork.
.-e 1o"rt -el# t-at t-e !ontra!tD alt-o"0- !ontainin0 a pri!e 8ase# on
<"antitiesD re/aine# a s!-e#"le o% rates !ontra!t. )ot&it-stan#in0 t-e
"nexpe!te# <"antit o% ro!k to 8e re/ove# an# t-e "nexpe!te# sea/s an#
%ra!t"res in t-e 8e#ro!k re<"irin0 extra ex!avationD t-e a##itional &ork &as
&ork &-i!- t-e S"8!ontra!tor -a# a0ree# to #o 8 t-e ter/s o% t-e !ontra!t.
.-e "nkno&n !-ara!ter o% t-e /aterials &as not o"tsi#e t-e !onte/plation o%
t-e partiesD it in %a!t 8ein0 t-e reason t-e parties !ontra!te# on a s!-e#"le o%
rates 8asis. .-e rates provi#e# &ere t-ere%ore %o"n# to 8e Cappli!a8leC to "se
in val"in0 t-e &ork.
$n WMC "esources Ltd v Leig!ton Contractors &ty Ltd
66
pa/ent %or t-e
&orks &as on a s!-e#"le o% rates 8asis. .-e !ontra!t provi#e# t-at variations
&ere to 8e val"e# 8 t-e 7rin!ipal "sin0 t-e s!-e#"le o% rates or i% s"!- rates
&ere not appli!a8le t-en as a0ree# 8et&een t-e parties. $% t-e parties %aile# to
a0reeD t-en t-e val"e &as to 8e #eter/ine# 8 t-e 7rin!ipal at Cits sole
#is!retionC.
G"sti!e 4n#erson !onsi#ere# &-et-er t-e &or# Cval"eC /eant t-e 1ontra!tor
&as to 8e %"ll !o/pensate#. He sai#E
.-e &or# Cval"eC is "se# in a spe!ial sense in t-is !ontra!t as part o% t-e expression
Cval"e o% t-e variationC. .-e &or# o8vio"sl -as a /eanin0 &-i!- is &i#er t-an t-e
pri/ar #i!tionar /eanin0E C&ort-C. '"t to sa t-at it /eans an a/o"nt C&-i!- &ill
%"ll !o/pensate t-e #e%en#ant in!l"#in0 an allo&an!e %or pro%it %or an a##itional
expense or loss in!"rre# or s"%%ere#... C is 0oin0 too %ar. .-at &o"l# re<"ire t-e plainti%%
to !o/pensate t-e #e%en#ant even %or ine%%i!ien!ies an# ex!essesF an# t-at !o"l# not
-ave 8een inten#e#.

65
@nreporte#D S"pre/e 1o"rt o% Western 4"straliaD '"rt 1GD Walla!e an# Wi!k-a/ GGD 31 G"l 1+80F '1 8000010
66
@nreporte#D S"pre/e 1o"rt o% Western 4"straliaD 4n#erson GD 10 Septe/8er 1++8F '1200002616.

25

$n relation to &-et-er t-e s!-e#"le o% rates pri!es s-o"l# 8e "se# 8 t-e
7rin!ipal &-en "sin0 its sole #is!retionD G"sti!e 4n#erson sai#E
.-ere is no expli!it re<"ire/ent in t-e !ontra!t t-at t-e val"e o% variations /"st 8e
expresse# in t-e %or/ o% an a#A"ste# s!-e#"le rateD nor t-at t-e Ca#A"st/entC to t-e
/ones ot-er&ise paa8le to t-e !ontra!tor /"st 8e in t-e %or/ o% an a#A"st/ent to
t-e s!-e#"le# rates. Ho&everD it /a 8e t-at in all t-e !ir!"/stan!esD on!e t-ose
!ir!"/stan!es are kno&nD t-at is t-e onl reasona8le !onstr"!tion to pla!e "pon t-e
variations provisions.
$n relation to li/its on t-e 7rin!ipal?s ?sole #is!retion? &-en val"in0 variations
"n#er t-e !ontra!tD G"sti!e 4n#erson sai#E
4s o%ten as notD per-aps invaria8lD a ter/ &ill 8e i/plie# into t-is %or/ o% !ontra!tD t-at
isD a !ontra!t in &-i!- t-e #e!ision o% a na/e# person is expresse# to 8e 8in#in0 an#
!on!l"siveD to t-e e%%e!t t-at t-e na/e# person /"st a!t at least -onestl% and wit-in
power in /akin0 -is #eter/ination or iss"in0 -is !erti%i!ateE Campbell v %dwards
J1+26K 1 W=6 403 per =or# Dennin0 M6 at 402F (tratford v ) # 's!man +0&, Ltd
J1+60K )P=6 503D espe!iall at 512F Baber v 8enwood J1+28K 1 =lo#?s 6ep 125 per
Sir Davi# 1airns at 181F "enard Constructions +M%, &ty Ltd v Minister for &ublic Wors
:1++2; 26 )SW=6 234.
.-ere is a n"/8er o% !ases &-i!- -ol# t-at -e /"st also a!t Creasonabl%CE 6enar#
1onstr"!tions :M*; 7t =t# v Minister %or 7"8li! Works :s"pra; per 7riestle G4 an#
Han#le G4F :!ontra Mea0-er G4.;
.-ese i/plie# ter/s t-at t-e #esi0nate# person a"t-orise# to !on!l"sivel #eter/ine
!ontra!t"al ri0-ts is 8o"n# to a!t -onestlD reasona8l an# &it-in po&er areD o% !o"rseD
ter/s t-at &ill 8e en%or!e# 8 t-e tri8"nal 8e%ore &-i!- r"lin0s 8 t-e #esi0nate#
person are !-allen0e#D so t-at i% -e is %o"n# to -ave 8een #is-onest or to -ave a!te#
8eon# po&erD -is !erti%i!ate or #eter/ination or opinion &ill not 8e en%or!e#. .-is is
si/pl 8e!a"se it &ill not 8e a !erti%i!ate or #eter/ination or opinion &-i!- is in
a!!or#an!e &it- t-e !ontra!tE =e0al , General =i%e o% 4"stralia =t# v 4 H"#son 7t =t#
:1+85; 1 )SW=6 314 per M!H"0- G4 at 335-336.
:!; !rolon"ation of preliminaries
Depen#in0 "pon -o& t-e 8ill o% <"antities or t-e s!-e#"le o% rates is &or#e#D
#isp"tes !an arise as to &-et-er t-e ite/ %or parti!"lar &ork in!l"#es t-e on
an# o%% site prolon0ation !osts involve# in t-e ti/e taken to exe!"te t-e varie#
&ork. $% t-e preli/inaries or prolon0ation !osts are #ee/e# to 8e in!l"#e# in
t-e rateD ex!essive #elas attri8"ta8le to t-e exe!"tion o% t-e varie# &ork
8e!a"se o% t-e ti/in0 or in#ee# t-e <"antit o% t-e variation /a ren#er t-e
rate inappli!a8le. 3n t-e ot-er -an#D &-ere t-e preli/inaries or #ela !osts
are assesse# separatel %ro/ t-e pri!e o% t-e variationD t-is %a!tor is less likel
to a%%e!t t-e appli!a8ilit o% t-e rate.
:#; !rofitabilit% or ot-erwise of t-e rate or price
.-e 1ontra!tor /a atte/pt to ar0"e t-at t-e nat"re or extent o% t-e &ork
/eans t-at t-e rate or pri!e is "npro%ita8le. 3n t-e ot-er -an#D t-e
s"perinten#ent /a !onsi#er t-at t-e rate or pri!e -as 8een Cloa#e#C :see
Se!tion 2.4.2; an# t-ere%ore not Creasona8leC or Cappli!a8leC.
Ho&everD 0iven t-e rel"!tan!e o% t-e 1o"rts to inter%ere in t-e 8ar0ain str"!k
8 partiesD it is "nlikel t-at s"!- an iss"e s-o"l# 8e taken into !onsi#eration
&-en #eter/inin0 i% t-e rate or pri!e is or is not appli!a8le.
3ne o% t-e !-ie% skills o% t-ose in a ten#erer?s esti/ates tea/ is to pre#i!t
&-i!- tpes o% &ork are likel to 8e t-e s"8Ae!t o% #ire!tions %or %"rt-er &orkD
an# ?loa#? t-e rates %or t-ose ite/sD to tr to se!"re an event"al -i0-er pro%it
on t-e Ao8. See %"rt-er #is!"ssion at Se!tion 2.4.2 8elo&.

26

W-ere t-e variation is a !-an0e %ro/ &ork %or &-i!- pri!es or rates -ave 8een 0ivenD
a#A"st/entD %a!torin0 an# extrapolation te!-ni<"es !an 8e "se# to #erive a
reasona8le rate. $n#ivi#"al !ost !o/ponents !an 8e separatel a#A"ste# to a!!o"nt
%or t-e !-an0es in &ork !ontent. 4##itional in%or/ation on t-e !o/position o% t-e rate
or pri!e /a 8e ne!essar i% an in%or/e# #e!ision is to 8e /a#e.
W-ere a si0ni%i!ant a/o"nt o% &ork -as alrea# taken pla!eD it /a 8e possi8le to
!o/pare per%or/an!eD /et-o#s an# e<"ip/ent "se# in t-e !ir!"/stan!es 8e%ore t-e
variation. .-e !ost #i%%erential /a o%ten 8e #eter/ine# 8 t-is /et-o#.
.2.2 ;easonable rates or prices
Most !onstr"!tion !ontra!ts provi#e t-at &-ere t-ere are rates or pri!es in!l"#e# in
t-e !ontra!tD t-e are to 8e "se# to t-e extent t-at it is reasona8le to "se t-e/D an#
&-en t-ese are not appli!a8leD reasona8le rates or pri!es are to 8e "se#.
SoD -o& #oes t-e S"perinten#ent #e!i#e &-at are reasona8le rates or pri!es9 .-e
S"perinten#ent /a seek t-e a#vi!e or assistan!e o% t-e 1ontra!tor. $n#ee#D in /ost
!asesD t-e 1ontra!tor &ill -ave s"8/itte# rates or pri!es %or t-e &ork. .-ese rates or
pri!es /a -ave 8een a!!o/panie# 8 so/e explanator notes &-i!- /a 8e
relevant.
.-e S"perinten#ent !o"l# also re%er to p"8lis-e# !ost in%or/ationD seek in#epen#ent
esti/ates or <"otations %ro/ ot-ersD or prepare its o&n esti/ate o% t-e likel !ost.
Bor an in#ivi#"al ite/ o% &orkD it is likel t-at an esti/ate# !ost %or t-e variation /a
8e in error 8 as /"!- as 100RD #epen#in0 on t-e !ir!"/stan!es o% t-e parti!"lar
!ontra!t. =a8o"r pro#"!tivit is notorio"sl varia8le. .-e exe!"tion o% variationsD 8
t-eir nat"reD is not 0enerall &ell planne# an# e%%i!ien! is o%ten lo&er t-an on si/ilar
&ork %or/in0 part o% t-e !ontra!t.
$t s-o"l# 8e apparent t-at it is ne!essar %or t-e S"perinten#ent to take an a!tive
interest in t-e reso"r!es 8ein0 "se# 8 t-e 1ontra!tor i% -e is to esta8lis- a
reasona8le rate %or varie# &ork.
$t /"st 8e re/e/8ere# t-at pri!es or rates %or t-e exe!"tion o% variations s-o"l#
in!l"#e all t-e risks asso!iate# &it- pro#"!tivitD plant 8reak#o&nD in#"strial an#
&eat-er lossesD re-&ork an# 0eneral site ine%%i!ien!. 4##itional pro%it on variations
/a res"lt %ro/ 8etter per%or/an!e t-an expe!te#D or !onservativel ne0otiate# rates.
4lternativelD i% t-e variation is not exe!"te# e%%i!ientlD t-e 1ontra!tor /a &ell lose
/one.
$t /a also 8e appli!a8le to "se ot-er !ontra!t #o!"/ents :in!l"#in0 s!-e#"le o%
rates or 8ills o% <"antities &-i!- /a not 8e #ire!tl appli!a8le; to #eter/ine a
reasona8le rate. Ho&everD t-e iss"e &-i!- /"st 8e !onsi#ere# isD in t-e a8sen!e o%
an express provision in t-e !ontra!tD &-at re%eren!e :i% an; s-o"l# 8e /a#e to t-e
8ill o% <"antities or s!-e#"le o% rates alt-o"0- t-ese /a not 8e #ire!tl appli!a8le9
)at"rallD i% t-e rates provi#e# in t-e 8ill are parti!"larl l"!rativeD t-e 1ontra!tor &ill
/aintain t-at it is entitle# to t-e 8ill rate pl"s an a#A"st/ent :/aintainin0 t-e -i0-
/ar0in in -is rates;. Ho&everD i% t-e rates are less t-an 0enero"sD t-e 1ontra!tor &ill
likel ar0"e t-at t-e variationD not %ailin0 &it-in t-e 8illD s-o"l# 8e !al!"late# 8
re%eren!e to #a la8o"r rates :or 8 !ost pl"s;.

22

D"n!an Walla!e in Construction Contracts; &rinciples and &olicies of .ort and
Contract
62
&rote t-e %ollo&in0 re0ar#in0 %ollo&in0 or a/en#in0 <"ote# pri!es an#
rates in !ontra!tsE
Most !ontra!ts &ill not per/it t-e pri!e in <"estion to 8e re-opene# at t-e s"it o% eit-er part on
t-e 0ro"n# t-at parti!"lar pri!es %or &-atever reasonD &ere too -i0- or too lo& or pro%ita8le or
"npro%ita8le.
'"t %or 0oo# reasonD 8e!a"se not all variations are or#ere# in 0oo# ti/e or !an 8e a8sor8e#
&it-o"t #i%%i!"lt into t-e !ontra!t as ori0inall pro0ra//e# &it-o"t e%%e!tin0 -is !riti!al pat-F or
8e!a"se site a!!ess or ot-er !on#itions /a var 8 !o/parison &it- t-e ori0inal pri!e# &orkF
or 8e!a"se altere# <"antities /a e%%e!t t-e pri!in0 e!ono/i!s o% t-e !ontra!tF nearl all
!onstr"!tion !ontra!ts #o per/it #epart"re %ro/ t-e pri!e !on!ept &-ere t-ose spe!ial %a!tors
are present.
W-ere t-is is so -o&everD /ost !ontra!tsD &-en properl an# exa!tl interprete# &ill re<"ire t-e
spe!ial !on!ept o% !ost !o/parison to 8e s"peri/pose# "pon t-e appli!a8le !ontra!t pri!es -
na/el as an a##ition to :or t-eoreti!allD o% !o"rseD even as s"8tra!tion %ro/; t-e pri!es in t-e
8ill o% <"antitiesD res"ltin0 %ro/ a !o/parison o% t-e a!t"al !osts o% t-e ite/D as ori0inall pri!e#
%orD a0ainst t-e a!t"al 8ill o% t-e ite/ as !arrie# o"t - in ot-er &or#sD i% t-e pri!e ite/ in t-e 8ill or
s!-e#"le is -i0- or pro%ita8le t-en t-e res"ltin0 a#A"ste# pri!e #"e to t-e spe!ial !-ara!ter or
e%%e!t o% t-e parti!"lar variation &ill also 8e -i0- or pro%ita8le an# vi!e versa. .-"sD in one @S
!ase t-e variation or C!-an0eC &as val"e# 8 re%eren!e to t-e #i%%eren!e 8et&een t-e
!ontra!tor?s a!t"al !ost an# ori0inal esti/ate# !ostD a%ter /akin0 an a#A"st/ent %or t-e
!ontra!tor?s "n#er esti/ate# 8i# as &ell as a#A"stin0 %or ot-er !osts as s-o&n 8 t-e re!or# %or
&-i!- t-e !ontra!tor &as responsi8le an# &-i!- &ere not a#A"ste# #"e to t-e !-an0e#
!on#itions.
.-at !aseD it is tr"eD !on!erne# t-e val"ation o% C!-an0e# !on#itionC !lai/D 8"t t-e prin!iple is
exa!tl t-e sa/e in relation to t-e spe!ial !ost a#A"st/ent %or #ist"r8an!e per/itte# "n#er /ost
!ontra!t variation val"ation provisions. $n /an !asesD o% !o"rseD t-is re%ine/ent /a not in
pra!ti!e 8e i/portantD 8"t in so/e !asesD parti!"larl &-ere "n"s"all -i0- or lo& 8ill or
s!-e#"le pri!es -ave 8een "se# an# t-e <"antities are ver lar0eD it /a 8e!o/e i/portant.
1lose exa/ination o% t-e variation val"ation provisions nee#s to 8e /a#e in all !asesD sin!e t-e
a8ove !o//ents re%le!t onl t-e 0eneralit o% s"!- provisions in /ost /o#ern !ontra!ts an# t-e
variation val"ation !la"ses are %re<"entl ver o8s!"rel #ra%te#.
.2.3 $a% works
Deter/ination o% a reasona8le rate /a 8e /ost #i%%i!"lt &-en t-e variation is %or a
!o/pletel ne& ite/ o% &ork an# t-ere are no si/ilar a!tivities alrea# in t-e !ontra!t.
$n t-ese !ir!"/stan!esD t-e S"perinten#ent /a "se t-e #a&ork provisions :i% t-e
!ontra!t so provi#es;.
.-e S"perinten#ent -as t-e option o% #ire!tin0 &ork to 8e "n#ertaken "n#er t-e
#a&orks provisions o% t-e !ontra!t :e0. !la"se 41 o% 4S 2124 an# !la"se 11.5 o% 71-
1;. W-en t-e variation is pri!e# "sin0 t-e #a&orks provisionsD t-e 7rin!ipal pas %or
t-e a!t"al #ire!t !ost o% !o/pletin0 t-e &ork. .-e #ire!t !ost is pai# to t-e
1ontra!tor.
.-e 7rin!ipal also a!!epts all t-e risks o% !o/pletin0 t-e &ork. .-e 1ontra!tor is
"s"all !o/pensate# %or over-ea#sD a#/inistrative !ostsD site s"pervisionD
esta8lis-/ent !ostsD atten#an!e an# pro%it 8 t-e a##ition o% a per!enta0e to t-e
#ire!t !osts in!"rre#. .-is per!enta0e is o%ten state# in t-e 4nnex"re or else&-ere in
t-e !ontra!t #o!"/ents or a0ree# 8et&een t-e parties.
.-e a0ree# per!enta0e in t-is !ase s-o"l# not in!l"#e a /ar0in %or risk as t-e
1ontra!tor is pai# %or t-e a!t"al !ost o% !o/pletin0 t-e &ork. Ho&everD a##itional
pro%it on variations pri!e# as #a&orks /a !o/e %ro/ t-e in!l"sion o% &ork &-i!-
ri0-tl %or/s part o% &ork pai# %or else&-ereD or %ro/ a -i0- per!enta0e a##ition.



28

@n#er #a&ork ratesD t-ere is no in!entive %or t-e 1ontra!tor to "n#ertake t-e &ork
e%%i!ientl an# !o/plete <"i!kl. Da&orks rates are a!t"al !osts an# not s"8Ae!te#
to a#A"st/ent %or rise an# %all. 'e!a"se pa/ents are /a#e pro/ptlD t-ere are no
a##itional !-ar0es %or %inan!in0 t-e &ork.
7a/ent "n#er t-e #a&ork provisions is pri/aril an a!!o"ntin0 exer!ise provi#e#
appropriate re!or#s are kept 8 t-e 1ontra!tor an# t-e 7rin!ipal. $% t-e &ork is
!o//en!e# &it-o"t an a0ree/ent t-at it is to 8e pri!e# an# pai# %or "n#er t-e
#a&ork provisionsD ina#e<"ate re!or#s /a 8e kept %or s"8se<"ent #eter/ination o%
t-e !ost o% #a&ork.
$n pra!ti!eD #i%%i!"lties /a arise in t-e esta8lis-/ent o% appropriate -ire !-ar0es %or
!onstr"!tion e<"ip/entD parti!"larl stan#8 ratesD an# in t-e #eter/ination o% t-e
&a0esD allo&an!es an# on-!osts appli!a8le to la8o"r. 4!t"al &a0es !osts &ill var
si0ni%i!antl t-ro"0-o"t t-e !ontra!t #epen#in0 on overti/eD #isa8ilit allo&an!esD
&eat-er !on#itions an# a!!o//o#ation provisions.
.-e !-ar0e to !over over-ea#sD a#/inistrative !ostsD site s"pervisionD esta8lis-/ent
!ostsD atten#an!e an# pro%it /a 8e !ontentio"s i% t-ere is no a0ree/ent in!l"#e# in
t-e !ontra!t.
.2.4 Valuation under t-e contract after performance of t-e variation
$n t-e instan!e a variation is per%or/e# an# t-e val"e o% t-at variation is to 8e
#eter/ine# in a!!or#an!e &it- t-e !ontra!t on prin!iples o% reasona8lenessD t-an
s"!- a val"e !an 8e sai# to 8e #eter/ine# on t-e 8asis o% a contractual <"ant"/
/er"it
68
.
Bor exa/pleD in 'tlantic Civil &ty Ltd v Water 'dministration Ministerial Corporation
6+
D
a #e!ision 8 t-e re%eree &-o r"le# t-at a <"ant"/ /er"it &as availa8le
not&it-stan#in0 t-at a vali# !ontra!t existe# &as !-allen0e#. Giles G sai#E
20

IJ4K variation &as to 8e val"e# in a!!or#an!e &it- t-e s!-e#"le o% rates so %ar as appli!a8le
orD in t-e a8sen!e o% a0ree/entD 8 #eter/inin0 a reasona8le rate or pri!e. )o #o"8t t-e
re%eree !onsi#ere# t-at t-e s!-e#"le rates &ere inappli!a8leD an# &-en -e re%erre# to ?a
<"ant"/ /er"it 8asis "n#er t-e !ontra!t? $ !onsi#er t-at -e /eant a reasona8le s"/ %or t-e
a##itional &ork. .-"s t-e re%eree &as not assessin0 a s"/ o"tsi#e an# in #e%ian!e o% t-e
!ontra!tD 8"t 0ivin0 e%%e!t to t-e !ontra!t. $n / opinion t-e #e%en#ant?s s"8/ission &as 8ase#
"pon a /is!on!eption o% t-e report.
.3 $isputes re"ardin" valuin" variations
)ot&it-stan#in0 t-e a8ove provisions %or val"in0 variationsD t-e %ollo&in0 !ase
ill"strates t-at iss"es /a still arise as to t-e appli!ation o% s"!- provisions.
$n "e (C Molineau3 * Co7 &ty7 Ltd7 and Board of .rustees of (ydney .almudical
College
21
D t-e 1ontra!tor a0ree# to ere!t a sna0o0"e an# !lassroo/s at 'on#i :t-e
CWorksC ; a!!or#in0 to t-e #ra&in0s an# spe!i%i!ation o% t-e 4r!-ite!t na/e# in t-e
1ontra!t. .-e iss"e &as &-et-er t-e onl rate &-i!- /a 8e allo&e# %or over-ea#
an# pro%it "pon variations &as nine per !ent as set o"t in t-e pri!e# 8ill o% <"antities.
1on#ition + provi#e# t-at t-e val"ation o% variations "nless previo"sl or ot-er&ise
a0ree# s-all 8e /et as %ar as possi8le in a!!or#an!e &it- t-e %ollo&in0 r"lesE

68
Do"0 GonesD Building and Construction Claims and Disputes, :1
st
e#D 1++6;D 2+.
6+
@nreporte#D )SW S"pre/e 1o"rtD Giles GD 25 Septe/8erD 16 3!to8er an# 30 )ove/8er 1++2.
20
$8i# at 53.
21
:1+65; 83 W) :)SW; 458.

2+

:a; .-e pri!e# 8ill o% <"antities orD i% no s"!- 8ill o% <"antities -as 8een provi#e#D
appropriate !"rrent rates s-all #eter/ine t-e val"e o% an variation to &-i!- s"!- rates
/a reasona8l applF
:8; W-ere t-ere are no appropriate !"rrent rates a %air val"ation o% t-e variation a!!or#in0
to t-e /eas"re/ents a#opte# 8 t-e 4r!-ite!t s-all 8e /a#eF
:!; $% in t-e opinion o% t-e 4r!-ite!t t-e val"ation o% t-e variations !annot 8e as!ertaine# 8
eit-er o% t-e a8ove /et-o#s t-e '"il#er "pon noti%i!ation to t-at e%%e!t s-all pro!ee#
&it- t-e &orks an# s-all present in s"!- %or/ as t-e 4r!-ite!t /a #ire!t a !orre!t
re!or# o% t-e !ost o% t-e variations to0et-er &it- evi#en!e s"pportin0 t-e sa/e. .-e
'"il#er s-all not 8e entitle# to an #is!o"nt on /aterials ot-er t-an #is!o"nt %or pro/pt
pa/ent. 4n !erti%i!ate iss"e# to t-e '"il#er 8 t-e 4r!-ite!t p"rs"ant to t-is !la"se
s-all in!l"#e reasona8le allo&an!e %or over-ea# an# pro%it.
1on#ition 10 rea# as %ollo&sE
4n 8ills o% <"antities or ot-er state/ents as to <"antities o% &ork s"pplie# to t-e '"il#er s-all
not %or/ nor 8e #ee/e# to %or/ an part o% t-is !ontra!t.
.-e spe!i%i!ation !ontaine# a !la"se &-i!- rea#E
'ills o% <"antities - 'ills o% <"antities are iss"e# %or t-e 0"i#an!e o% ten#erers an# #o not %or/
an part o% t-is !ontra!t. 4 %"ll pri!e# !op o% t-e bill of +uantities wit- all rates s-own
added and c-ecked is to be deposited b% t-e successful tenderer wit- t-e /rc-itect
8e%ore si0nin0 t-e !ontra!t %or !-e!kin0 p"rposes. S"!- rates &ill %or s!-e#"le rates an# &ill 8e
"se# %or #eter/inin0 t-e !osts o% extrasD #e#"!tions or variations to t-e !ontra!t.
.-e '"il#er #eposite# a pri!e# 8ill o% <"antities &it- t-e 4r!-ite!t in a!!or#an!e &it-
t-at !la"se as set o"t in t-e spe!i%i!ation. 4s t-at pri!e# 8ill o% <"antities &as
s"pplie# 8 t-e '"il#er :an# not s"pplie# to t-e '"il#er;D it &as not !a"0-t 8 t-e
provisions o% !on#ition 10.
$t #i#D -o&everD 8 virt"e o% t-e operation o% t-e !la"se in t-e spe!i%i!ation <"ote#
a8oveD %or/ part o% t-e !ontra!t"al ter/s a0ree# "pon 8et&een t-e parties an# &as
t-"s i#enti%ie# as t-e pri!e# 8ill o% <"antities &-i!- &as re%erre# to in !on#ition +:a; -
in a!!or#an!e &it- &-i!-D "nless t-ere &as so/e previo"s or ot-er a0ree/entD t-e
val"ation o% t-e variations &as to 8e /a#e. 4 spe!i/en pa0e o% t-e pri!e# 8ill o%
<"antities provi#e# 8 t-e 1ontra!tor to t-e 4r!-ite!t :in a!!or#an!e &it- t-e
spe!i%i!ation; s-o&e# a s"//ar o% ite/s %or 8ri!klaerD /etal &orkerD !arpenter an#
Aoiner an# t-e likeD ea!- -avin0 opposite it a state# s"/ o% /one. .-e ite/s &ere
totalle# an# t-e pri!e# 8ill !on!l"#e# in t-e %ollo&in0 %or/E
.otal 34D482.80
4## one per !ent <"antit s"rveor?s %ee 380.00
34=8#2.8&
0ine per cent 3D132
.en#er sa 3'=999.&&
3'=92#
$t &as a0ree# 8et&een t-e parties t-at t-e per!enta0e %i0"re o% nine per !ent &as
inserte# in t-e pri!e# 8ill to represent t-e 1ontra!tor?s allo&an!e in t-e total !ontra!t
s"/ %or over-ea# an# pro%itD o% &-i!- ei0-t per !ent represente# over-ea# an# one
per !ent represente# pro%it. .-e 7rin!ipal ar0"e# t-at t-is &as t-e rate to 8e allo&e#
%or over-ea# an# pro%it on t-e variations ex!ept in !ases &-ere t-e 7roprietor allo&e#
anot-er rate 8e!a"se t-e pri!e# 8ill o% <"antities as re%erre# to in !on#ition +:a; &as
not appropriate to val"e t-e relevant variation.

30

.-e 1ontra!tor ar0"e# t-at t-e pri!es in t-e pri!e# 8ill o% <"antities &ere net pri!es
an# !ontaine# no pro%it or over-ea# an# t-at !on#ition + :a; &as !on!erne# onl &it-
a 8ill o% <"antities #ealin0 &it- pri!es %or /aterials an# !osts o% la8o"r an# #i# not
in!l"#e over-ea# an# pro%it. .-e 1ontra!tor ar0"e# t-atD irrespe!tive o% &-i!- is
!ontaine# in t-e earlier part o% !on#ition +D its !on!l"#in0 senten!e provi#e# t-at an
!erti%i!ate iss"e# to t-e 1ontra!tor 8 t-e 4r!-ite!t p"rs"ant to !on#ition + s-o"l#
in!l"#e a reasona8le allo&an!e %or over-ea# an# pro%it. .-e 1ontra!tor /aintaine#
t-at in arrivin0 at &-at &as a reasona8le allo&an!e %or pro%it t-e %i0"re o% ei0-t per
!ent &as not to 8e #isre0ar#e# 8"t &as to 8e taken into a!!o"nt in as!ertainin0 &-at
is a reasona8le allo&an!e.
.-e 1o"rt -el# t-e proper interpretation o% !on#ition + &as as t-e 7rin!ipal
/aintaine#. 4spre G state#E
22

$t appears to /e t-at t-e /eanin0 to 8e 0iven to !on#ition + is plain an# t-atD &-ere t-e
val"ation o% variations a"t-orise# or san!tione# 8 t-e 4r!-ite!t -ave not 8een previo"sl or
ot-er&ise a0ree#D t-enD &-ere t-ere is a pri!e# 8ill o% <"antitiesD t-e val"ation s-all 8e /a#e as
%ar as possi8le in a!!or#an!e &it- t-e pri!e# 8ill o% <"antities.
.-e pri!e# 8ill o% <"antities in t-e present !ase #oes !ontain a state# rate o% over-ea# an#
pro%it. .-e !on!l"#in0 senten!e o% !on#ition +D &-i!- provi#es t-at t-e 4r!-ite!t?s !erti%i!ate
iss"e# to t-e '"il#er p"rs"ant to !on#ition + s-all in!l"#e Creasona8le allo&an!e %or over-ea#
an# pro%itCD isD in / vie&D "pon t-e tr"e !onstr"!tion o% t-is a0ree/entD #esi0ne# to !over t-ose
!ases in &-i!- t-ere -as 8een no a0ree/ent 8et&een t-e parties as to rates %or over-ea# or
pro%itD in &-i!- !ase a reasona8le allo&an!e /"st 8e /a#e 8 t-e 4r!-ite!t "n#er t-ose -ea#s.
'"tD &-ereD as in t-e present !aseD t-e parties -ave expressl a0ree# "pon s"!- ratesD t-ere is
neit-er roo/ nor nee# %or t-e 4r!-ite!t to %ix an ot-er rates.
#. $ela%s and variations
#.1 .eneral 2omments
Go88o GD in (tate (avings Ban of Victoria v7 Costain 'ustralia Ltd :Constain;
23

!o//ente# on t-e iss"e o% variations an# s"8se<"ent #ela to t-e &orks as %ollo&sE
:a; 4 variation re<"irin0 extra &ork /aD 8"t #oes not ne!essarilD #ela t-e
pro0ress or !o/pletion o% t-e &orks.
$t /a 8e tr"e t-at in t-e vast /aAorit o% !ases per%or/an!e o% a
variation %or extra &ork /eans a retar#in0 o% t-e pro0ress o% t-at part
o% t-e &orks t-e s"8Ae!t o% t-e variation.
'"t it is not inevita8l so in all !ases. *xtra &ork /a 8e o% a nat"re
t-at i/pin0es in no relevant sense on t-e &orks. .-"s an instr"!tion to
s"ppl in#oor plants in t"8s in a !ertain lo88 /a 8e /et &it-o"t an
o8str"!tion o% t-e &orks... $t &ill #epen# on t-e val"e o% t-e variationD
t-e /anner o% its per%or/an!e an# a &-ole ran0e o% ot-er
!ir!"/stan!esD in!l"#in0 t-e sit"ation at t-e Site. $t is too si/plisti! to
e<"ate an a##ition to t-e &ork in all !ases to a retar#ation o% t-e &orks
or part t-ereo%.
:8; .-ere is no 0eneral prin!iple t-at i% t-e S"perinten#ent or#ers Cextra &orkC as
a variation t-ere /"st 8e an extension o% ti/e. )or is it possi8le to sa t-at in
s"!- a !ase li<"i#ate# #a/a0es are "nen%or!ea8le 8e!a"se o% t-e operation
o% t-e CpreventionC prin!iple.

22
$8i# at 461.
23
@nreporte# G"#0e/ent 28 3!to8er 1+82 5i!torian S"pre/e 1o"rtF :1+83; 2 41=6 1.

31

:!; 4n appropriate extension o% ti/e !la"se /eets t-e pro8le/ o% a 1ontra!tor
#ire!te# to #o extra &ork &-ilst #a/a0es %or late !o/pletion are r"nnin0
a0ainst -i/.
4ll t-at is re<"ire# is an extension o% ti/e !la"se &-i!- is !apa8le o%
appli!ation to t-e Cextra &orkC variation. )eit-er on prin!iple nor on t-e
a"t-orities is it ne!essar to -ave a !la"se t-at is 8ot- !apa8le o%
provi#in0 an extension an# in %a!t 8rin0s a8o"t an extension in ever
!ase.
:#; W-ere t-ere is an o8li0ation on t-e '"il#er to pa li<"i#ate# #a/a0esD t-e
prevention prin!iple will operate &-ere t-e 7roprietor #oes an a!tD s"!- as
or#erin0 extra &orkD &-i!- in t-e a8sen!e o% /a!-iner %or possi8le relie%
in!reases t-at lia8ilit %or #a/a0es.
:e; )or !an one sa t-at even &-ere t-ere is s"!- a !la"se an# t-e extension
!o"l# 8e 0rante# a%ter t-e &ork &as #oneD "ntil s"!- extension is in %a!t
0rante# t-ere is no entitle/ent to li<"i#ate# #a/a0es.
#.2 1ill t-e variation cause dela%)
5ariations /a :8"t #o not ne!essaril; #ela t-e pro0ress o% t-e &-ole o% t-e &orks
or so/e part o% it. 4s o8serve# in Costain :see i//e#iatel a8ove;D t-e /ere
or#erin0 o% extra &ork as a variation o% itsel% #oes not i/port #ela an# !onse<"ent
entitle/ent to an extension o% ti/e.
24

3% !o"rseD t-e variation /a #ela an a!tivit or a!tivities. 5ariations /a 8e on or o%%
t-e !riti!al pat- o% t-e per%or/an!e o% t-e &orks. $n t-ese !ir!"/stan!es t-e
1ontra!tor /a or /a not 8e entitle# to an extension o% ti/e. )evert-elessD i% t-ere
is a #ela !a"se# 8 t-e variation it /a !a"se t-e 1ontra!tor to in!"r !osts &-i!-
&o"l# ot-er&ise not 8e in!"rre#.
.-e variation /a #ela t-e !o/pletion o% t-e &orks as a &-ole an#D not onl #ela
!ertain a!tivitiesD 8"t !a"se t-e 1ontra!tor to 8e on t-e site lon0er t-an &o"l#
ot-er&ise -ave 8een t-e !ase.
.-e i/pa!t o% one or /ore variations on t-e 1ontra!tor?s or#erl an# e!ono/i!
pro0ress o% t-e &orks is so/eti/es #i%%i!"lt to s-o&. .-e !onse<"en!es o% several
in#ivi#"al variations /a 8e !"/"lative. M"ltiple variations in s"!!ession /a -ave a
total e%%e!t 0reater t-an t-e s"/ o% t-e e%%e!ts o% in#ivi#"al variations.
.-e iss"e 8e!o/es to &-at extent t-e Cextra !ostC o% per%or/an!e #"e to #ela or
#isr"ptionD i% anD !a"se# 8 t-e variation !an %or/ part o% t-e val"ation entitle/ent.
.o &-at extent /a t-e 1ontra!tor 8e !o/pensate# %or t-e #ela9
#.3 Valuation of variation and t-e inclusion >or ot-erwise? of dela% costs
.-is iss"e /"st 8e !onsi#ere# not onl in t-e !ontext o% t-e variation val"ation
provisionsD 8"t in t-e !ontext o% t-e !ontra!t as a &-oleD in!l"#in0 t-e extension o%
ti/e provisions an# an #ela !osts provisions.
/S 4&&&
5ariations "n#er 4S 4000 are to 8e pri!e# "n#er !la"se 36.4. .-at !la"se provi#es
t-at ea!- variation &ill 8e pri!e# a!!or#in0 to an or#er o% pre!e#en!e o% ite/s &-i!-

24
$8i#.

32

#o not expressl /ention ti/e relate# or #ela !osts :re%er to Se!tion 5.1 %or a list o%
t-ose ite/s;.
Ho&everD "n#er !la"se 36.2 :7ropose# variation;D t-e S"perinten#ent ma% #ire!t t-e
1ontra!tor is to provi#e #etails o% an ti/e relate# !osts in respe!t to a propose#
variation. Given t-at t-e S"perinten#ent -as a #is!retion as to &-et-er or not it &ill
#ire!t t-e 1ontra!tor to provi#e s"!- in%or/ationD s"!- in%or/ation /a not -ave
8een provi#e# &-en a variation is val"e# "n#er !la"se 36.4. $t is t-ere%oreD "n!lear i%
t-e S"perinten#ent is to !onsi#er ti/e relate# !osts &-en val"in0 a variation "n#er
t-ese !la"ses.
@n#er !la"se 3+.4 :#ela #a/a0es; ever #a t-e s"8Ae!t o% a !o/pensa8le !a"se
:&-i!- in!l"#es an a!t o% t-e S"perinten#entD in!l"#in0 #ire!tin0 t-e 1ontra!tor to
per%or/ a variation;D t-e 1ontra!tor !an !lai/ #ela #a/a0es p"rs"ant to !la"se 41.1
:1o//"ni!ation o% !lai/s;. .-e 1ontra!torD /a t-ere%oreD !lai/ ti/e relate#
#a/a0es :&-i!- /a 8e 8roa#er t-an !osts; in respe!t o% a variation "n#er t-is
!la"se.
.-e #i%%i!"lt %or t-e S"perinten#ent is to ens"re t-at t-e 1ontra!tor -as not #o"8le
#ippe# 8 !lai/in0 ti/e relate# !osts 8ot- "n#er !la"se 36.4 an# 3+.4.
0!12
1la"se 40.1 o% )7W1 provi#es t-at variations s-all 8e val"e# in a!!or#an!e &it-
1la"se 40. 2 as %ollo&sE
4 variation s-all 8e val"e# in a!!or#an!e &it- t-e rates in!l"#e# in t-e 7ri!e# 'ill o% ("antities
or S!-e#"le o% 6ates or in a s!-e#"le o% pri!es i% an# in so %ar as t-e S"perinten#ent
#eter/ines t-at t-ose rates are appli!a8le to t-e variation. W-en t-e S"perinten#ent
#eter/ines t-at Jt-ose ratesK #o not appl to a variationD t-e rate or pri!e paa8le %or t-e
variation s-all 8e #eter/ine# 8 a0ree/ent 8et&een t-e 1ontra!tor an# t-e S"perinten#entD 8"t
i% t-e 1ontra!tor an# t-e S"perinten#ent %ail to a0ree on t-e rate or pri!e t-e S"perinten#ent
s-all #eter/ine s"!- rate or pri!e as -e !onsi#ers reasona8le or -e /a #ire!t t-at t-e variation
s-all 8e !arrie# o"t as Da&ork.
1la"se 40.1 #oes not #ire!tl re%er to #ela or ti/e relate# !osts.
.-e %ollo&in0 !ases -ave !on!erne# &-et-er or not a parti!"lar !la"se ena8les t-e
S"perinten#ent to !onsi#er #ela or ti/e relate# !osts &-en val"in0 a variation. .-e
s"8Ae!t !la"ses &ere si/ilar to !la"se 40.1 o% )7W1.
.-e Hi0- 1o"rt o% 4"straliaD in .uta &roducts &ty Limited v #utc!erson Bros &ty
Limited
25
D !onsi#ere# a variations !la"se in t-e %ollo&in0 ter/s &-i!- did not
expressl in!l"#e #ela !osts in t-e val"ation pro!e#"reE
)o variation s-all vitiate t-e !ontra!tD 8"t "nless a pri!e t-ere%or s-all -ave previo"sl 8een
a0ree#D all variations a"t-orise# or san!tione# 8 t-e 4r!-ite!t s-all 8e val"e# an# t-e s"/
involve# s-all 8e a##e# to or #e#"!te# %ro/ t-e !ontra!t s"/ as t-e !ase /a 8e.
$n as!ertainin0 s"!- val"eD /eas"re/ents an# assess/ents s-all 8e /a#e an# s"pplie# 8 t-e
'"il#er to t-e 4r!-ite!t. $% t-e 4r!-ite!t is not satis%ie# t-ere&it-D -e /a /ake /eas"re/ents
-i/sel% or !a"se s"!- /eas"re/ents to 8e /a#e 8 a ("antit S"rveor an# s-all s"ppl t-e
sa/e to t-e '"il#er an# an %ees to 8e pai# %or an s"!- /eas"re/ents s-all 8e a##e# to t-e
1ontra!t S"/. .-e val"ation o% s"!- variations "nless previo"sl or ot-er&ise a0ree# s-all 8e
/a#e as %ar as possi8le in a!!or#an!e &it- t-e %ollo&in0 r"lesE
:a; .-e pri!e# 'ill o% ("antities orD i% no s"!- 'ill o% ("antities -as 8een provi#e#
appropriate !"rrent rates s-all #eter/ine t-e val"e o% an variation to &-i!- s"!- rates
/a reasona8l appl.

25
:1+22; 122 1=6 253.

33

:8; W-ere t-ere are no appropriate !"rrent rates a %air val"ation o% t-e variation a!!or#in0
to t-e /eas"re/ents a#opte# 8 t-e 4r!-ite!t s-all 8e /a#e.
:!; $% in t-e opinion o% t-e 4r!-ite!t t-e val"ation o% t-e variations !annot 8e as!ertaine# 8
eit-er o% t-e a8ove /et-o#s t-e '"il#er "pon noti%i!ation to t-at e%%e!t s-all pro!ee#
&it- t-e Works an# s-all present in s"!- %or/ as t-e 4r!-ite!t /a #ire!t a !orre!t
re!or# o% t-e !ost o% t-e variations to0et-er &it- evi#en!e s"pportin0 t-e sa/e. .-e
'"il#er s-all not 8e entitle# to an #is!o"nt on /aterials ot-er t-an #is!o"nt %or pro/pt
pa/ent.
4n ?!erti%i!ate iss"e# to t-e '"il#er 8 t-e 4r!-ite!t p"rs"ant to t-is !la"se s-all in!l"#e
reasona8le allo&an!e %or over-ea# an# pro%it.
.-e !la"se &as !onstr"e# as 8ein0 !on!erne# &it- val"ation 8 t-e /eas"re/ent o%
tan0i8le t-in0s an# not appropriate to a !lai/ %or !o/pensation %or loss or expense
#"e to #ela.
4 si/ilar approa!- &as taken 8 'ra 1G in .aylor Woodrow 1nternational Ltd v
Minister of #ealt!
26
a8o"t val"ation provisions in anot-er a/en#e# *58 %or/ o%
8"il#in0 !ontra!t. His Hono"r state#E
22

$n / vie& t-ese provisions are "tterl inappropriate %or t-e assess/ent o% loss or expense
arisin0 %ro/ #ela &-i!- /i0-t not ne!essitate an a##itional &ork at allD or ant-in0 &-i!-
!o"l# 8e /eas"re# or val"e# 8 re%eren!e to t-e spe!i%i!ations.C
6e%errin0 to 1la"se 24 :t-e Closs or expenseC !la"se; -e sai#E
$ rea# !la"se 24:i;:v; as in#i!atin0 t-at t-ere are so/e !lai/s %or loss or expense &-i!- s-o"l#
8e in!l"#e# in t-e val"e o% a variation an# t-ere%ore in%erentiall t-at t-ere are so/e &-i!-
s-o"l# notI
$t is ar0"a8le t-at 1la"se 40.2 o% )7W1D &-ile not expresse# in i#enti!al ter/sD is
e<"all inappropriate to t-e val"ation o% #ela !osts 8 t-e S"perinten#ent.
Ho&everD !la"se 35.4 :C*xtension o% ti/e %or 1o/pletionC; provi#es in its %inal
para0rap-E
)o !lai/ %or extra !osts in!"rre# 8 t-e 1ontra!tor 8 reason o% or as a res"lt o% or arisin0 %ro/
t-e exer!ise 8 t-e S"perinten#ent o% t-e po&er to 0rant or allo& an extension o% ti/e "n#er
t-is s"8-!la"se s-all 8e entertaine# 8 t-e 7rin!ipal "nless t-e nee# %or t-e extension o% ti/e
&as #"e to an% breac- o% t-e provisions o% t-e 1ontra!t 8 or an% ot-er act or omission on
t-e part o% t-e 7rin!ipalD t-e S"perinten#ent or t-e e/ploeesD pro%essional !ons"ltants or
a0ents o% t-e 7rin!ipal.
$t is ar0"a8le t-at t-e #ire!tion to per%or/ a variation is an ?a!t? o% t-e S"perinten#ent.
.-e #e!ision o% t-e )e& So"t- Wales 1o"rt o% 4ppeal in /ra!am %vans * Co &ty Ltd
v (&F Formwor &ty Ltd
28
appears to s"pport t-e ar0"/ent t-at t-e e%%e!t o% !la"se
35.4 :o% )7W1; is to allo& re!over o% #ela !osts arisin0 %ro/ !o/plian!e 8 t-e
1ontra!tor &it- a #ire!tion %ro/ t-e S"perinten#ent to exe!"te a variation to t-e
Works.
)oteD -o&everD t-at t-e !la"se see/s to s"00est t-at !lai/s %or extra !osts #"e to
#elas #"e to variations are to 8e Centertaine#C 8 t-e 7rin!ipal rat-er t-an t-e
S"perinten#ent. .-ere%oreD is t-e 1ontra!tor re<"ire# to s"8/it its !lai/ to t-e
7rin!ipal an# not t-e S"perinten#ent9 $% t-e 1ontra!tor &ere #issatis%ie# &it- t-e
7rin!ipal?s #e!ision in respe!t o% t-e 1ontra!tor?s !lai/ "n#er !la"se 35.4D t-ere is a
C#isp"te or #i%%eren!e arisin0 o"t o% t-e 1ontra!tC %or t-e p"rposes o% !la"se 45

26
1+ S4S6 1D +.
22
$8i# at +.
28
:1++1; 8 '1= 142F '1+102132.

34

:CSettle/ent o% Disp"tesC; &-i!- /a t-en 8e s"8/itte# to t-e S"perinten#ent %or
#e!ision "n#er !la"se 45:a;.
.-ere is an ele/ent o% illo0i!alit in t-is pro!ess %orD i% t-e 1ontra!tor is #issatis%ie#
&it- t-e !la"se 45:a; #e!ision 8 t-e S"perinten#entD t-e /atter is t-en s"8/itte# to
t-e 7rin!ipal %or #e!ision "n#er !la"se 45:8;D even t-o"0- it is t-e initial #e!ision 8
t-e 7rin!ipal "n#er !la"se 35.4 &-i!- 0ives rise to t-e C #isp"te or #i%%eren!eC &-i!- is
to 8e resolve# 8 t-e pro!e#"res "n#er !la"se 45.
/S 2124
@n#er !la"se 40 o% 4S 2124 t-e S"perinten#ent /a #ire!t variations. 1la"se 40.5:%;
provi#esE
$% t-e val"ation relates to a##itional !osts in!"rre# 8 t-e 1ontra!tor %or #ela or #isr"ptionD t-e
val"ation s-all in!l"#e a reasona8le a/o"nt %or over-ea#s 8"t s-all not in!l"#e pro%it or loss o%
pro%it.
$n .uta &roducts &ty Limited v #utc!erson Bros &ty Limited
2+
D t-e 4r!-ite!t &as
#ire!te# 8 t-e relevant !la"se to in!l"#e an allo&an!e in t-e val"ation o% variations
%or over-ea# an# pro%it. Step-en GD interestin0l in li0-t o% t-e &or#in0 o% !la"se
40.2:0; 4S 2124-1+86D re0ar#e# t-is &or#in0 asE
80

inappropriate in t-e !ase o% a !lai/ %or !o/pensation %or loss or expense #"e to #ela 8"t
entirel appropriate &-en t-e <"antit o% &ork #one or /aterial s"pplie# -as 8een altere# %ro/
t-at !ontra!te# %or an# &-i!- &as to 8e re&ar#e# 8 t-e a0ree# 1ontra!t S"/D &it- its 8"ilt-in
allo&an!e %or 8ot- over-ea# an# pro%it.
!2 1
@n#er !la"se 11.3 o% 71 1D t-e 1ontra!t 4#/inistrator is re<"ire# to in!rease t-e
1ontra!t 7ri!e 8 an% reasona8le !osts an# expenses in!"rre# 8 t-e 1ontra!tor
arisin0 %ro/ t-e 5ariation dela%in" t-e 1ontra!tor.
@n#er !la"se 10.5D t-e 1ontra!tor is entitle# to !lai/ an extension o% ti/e i% #elae#
8 an 4!t o% 7revention :&-i!- in!l"#es t-e 1ontra!tor 4#/inistrator #ire!tin0 a
variation;. $t is not !lear i% t-e 1ontra!tor /"st -ave !lai/e# an# 8een a&ar#e# an
extension o% ti/e "n#er !la"se 10.5 %or t-e 1ontra!t 4#/inistrator to !onsi#er
?reasona8le? #ela !osts "n#er !la"se 11.3.
Ho&everD it is !lear t-at "n#er !la"se 10.11 :40ree# Da/a0es; t-e 1ontra!tor !an
onl !lai/ #ela #a/a0es i% t-e 3&ner -as breac-ed t-e 1ontra!t. .-e 1ontra!tor
!o"l# not t-ere%ore !lai/ #ela !osts %or a variation "n#er t-is !la"se as #ire!tin0 a
variation &o"l# not 8e a 8rea!- o% t-e 1ontra!t.
4r0"a8lD t-e provisions o% 71 1 /ake it less likel t-at !on%"sion &ill res"lt re0ar#in0
"n#er &-i!- !la"se t-e 1ontra!tor is to !lai/ %or its ti/e relate# !osts %or a variation
:!o/pare# to sa 4S 4000; &-i!- /a in t"rn /ean %e&er #isp"tes an# less
opport"nit %or t-e 1ontra!tor to ?#o"8le #ip?.
#.4 $ela% and disruption cost of variations as part of a "lobal claim
W-ere t-ere -ave 8een a si0ni%i!ant n"/8er o% variations #ire!te# over a
!onsi#era8le perio# o% ti/eD t-e 1ontra!tor /a ele!t to /ake a 0lo8al !lai/. Wit-
s"!- ?0lo8al !lai/s? t-e 1ontra!tor seeks to re!over all a!t"al !osts &it-o"t provin0

2+
:1+22; 122 1=6 253.
80
$8i# at 285.

35

t-at per%or/an!e o% variations -ave 8een t-e !a"se o% s"!- !osts. G"sti!e 'rnesD in
re0ar# to t-isD sai#E
81

1a"sation is so"0-t to 8e in%erre# rat-er t-an prove#.
.-e 1ontra!tor /"st prove t-at no event %or &-i!- it &as !ontra!t"all responsi8le
!a"se# an o% t-e !osts in!"rre#. 4!!or#in0lD it !an 8e #e#"!e# t-at t-e !a"ses o%
t-e 1ontra!tor?s !osts /"st -ave 8een t-e responsi8ilit o% t-e 7rin!ipal. .-e
prin!iples re0ar#in0 s"!- 0lo8al !lai/s -ave 8een esta8lis-e# 8 a n"/8er o% !ases.
W-ere it &as not possi8le to #eter/ine t-e !a"ses o% ea!- lossD t-en it is le0iti/ate
%or a !o"rt to /ake a ?0lo8al? a&ar#.
82

$n ) Crosby * (ons Ltd v &ortland 6rban District Council,
83
Donal#son G -el# t-at
&-ere t-e 1ontra!tor -a# 8een #elae# 8 a series o% events %or &-i!- t-e 7rin!ipal
&as responsi8le :e0 late possession o% t-e siteD s"spension o% &ork an# variations;
&-i!- res"lte# in in!rease# site over-ea# expenses an# loss o% pro#"!tivit o% plant
an# la8o"rD t-en an ar8itrator /a /ake in#ivi#"al a&ar#s in respe!t o% t-ose parts o%
in#ivi#"al ite/s o% t-e !lai/ &-i!- !an 8e #ealt &it- in isolation an# a s"pple/entar
a&ar# in respe!t o% t-e re/ain#er o% t-e !lai/s as a !o/posite &-ole.
Ho&everD in t-at !ase t-e G"#0e #i# not a!!ept t-e a!!epte# stan#ar# ar0"/ent t-at
t-e ar8itrator /"st arrive at t-e l"/p s"/ a&ar# 8 %irst as!ertainin0 t-e in#ivi#"al
a/o"nts -e %in#s #"e "n#er ea!- -ea# o% !lai/ 8e!a"se t-e extent o% t-e extra !ost
!lai/e# #epen#e# "pon Can e3tremely comple3 interaction between t!e
conse5uences of t!e various events, and it may be difficult or even impossible to
mae an accurate apportionment of t!e total cost between t!e several causative
events7C Ho&everD t-ere /"st 8e no #"pli!ation an# i% t-ere is an -ea# o% !lai/ in
t-e 0ro"p &-i!- #oes not per/it pro%itD t-at isD onl allo&s Cextra !ost or expenseCD t-e
C0lo8alC a&ar# /"st ex!l"#e pro%it.
#. Subse+uent claims for dela% due to multiple variations
3%ten t-e 1ontra!tor /a not realise t-e extra !ost ele/ent o% t-e #ela an#
#isr"ption i/pa!t o% /"ltiple variations. 4s variations are #ire!te# #"rin0 t-e pro0ress
o% t-e &orkD t-e 1ontra!tor /a s"8/it its !lai/s an# t-e S"perinten#ent /a
#eter/ine t-e val"ation %or t-e in#ivi#"al variations 8ase# "pon t-e rates in t-e
!ontra!t. .-e 1ontra!tor /a also !lai/ an# o8tain an extension o% ti/e. $t is onl
a%ter t-e &ork is !o/plete# t-at t-e #ela i/pa!t o% variations overall /a 8e
#eter/ine#.
Di%%i!"lt iss"es arise !on!ernin0 t-e 8asis o% t-e ori0inal val"ations an# &-et-er t-e
val"ation in!l"#e# an ele/ent o% #ela !ost an# &-et-er an# on &-at 8asis t-e later
!lai/ !an 8e /a#e an# val"e#.
.-e 1ontra!tor /a also %a!e a pro!e#"ral #e%en!e t-at t-e !lai/ -as 8een /a#e
8e%ore an# ti/e perio#s %or p"rs"in0 t-e !lai/ -ave not 8een /et.
84

#.# /utomatic entitlement to 68T if variation preformed after t-e date for practical
completion)
1onsi#er t-e sit"ation &-ere t-e Date %or 7ra!ti!al 1o/pletion "n#er t-e !ontra!t -as
passe#D an# t-e 1ontra!tor is still trin0 to !o/plete. .-e 1ontra!tor is lateD li<"i#ate#

81
'rne DD .otal 1osts an# Glo8al 1lai/sC :1++5; 11 '1= 3+2 at 410.
82
) Crosby and (ons Ltd v &ortland 6rban District Council :1+62; 5 '=6 121F 0auru &!osp!ates "oyalties .rust v Matt!ew #all %lectrical
%ngineers &ty ltd :1++2; 10 '1= 12+.
83
:1+62; 5 '=6 121.
84
Commonwealt! v )ennings Constructions Ltd J1+85K 5.6. 586F :1+85; 1 '1= 252.

36


#a/a0es are ?r"nnin0?. .-e 7rin!ipal or t-e S"perinten#ent &is-es to #ire!t a
variation. .-e variation &ill %"rt-er #ela t-e 1ontra!tor.
1an t-e 1ontra!tor /aintain t-at it is entitle#D a"to/ati!allD to an extension o% ti/e9
$n Commissioners for (tate Ban Victoria v Costain 'ustralia Ltd
85
a #ire!tion to
per%or/ a variation &as 0iven a%ter &-at &o"l# -ave 8een t-e #ate %or pra!ti!al
!o/pletion 8"t &it-in t-e ti/e 0iven to t-e 1ontra!tor to !o/plete t-e &orks as a
res"lt o% an earlier extension o% ti/e -avin0 8een 0rante#. .-e 1ontra!tor !arrie# o"t
t-is variation &ork 8e%ore t-e ot-er et to 8e !o/plete# &ork &it-in t-e "nvarie#
s!ope o% &ork. .-e 1ontra!tor s"8/itte# t-at t-e per%or/an!e o% variation &ork a%ter
t-e #ate o% pra!ti!al !o/pletion /"st !a"se #ela as no !ontra!t"al ti/e &as le%t to
!o/plete t-e &ork.
.-e 1o"rt -el# t-at "n#er t-e !ontra!t t-ere &as no a"to/ati! entitle/ent to an
extension o% ti/e %or variations 8ase# si/pl "pon t-e point o% ti/e at &-i!- t-e
variation #ire!tion &as iss"e# an# t-at an entitle/ent onl arose i% t-e variation &ork
#elae# t-e pro0ress o% t-e &orks. Go88o G %"rt-er o8serve#E
B"rt-erD t-e 0rantin0 o% an extension &o"l# al/ost invaria8l still %in# t-e '"il#er #oin0 t-e extra
&ork not in !ontra!t ti/e. .-"s &-ere an extra t-at !o"l# rea#il 8e !al!"late# to take one #a
to !o/plete is or#ere# an# attra!ts an extension o% one #aD it #oes not /ean t-at t-is extra is
!arrie# o"t in !ontra!t ti/eD %or t-e one #a is a##e# to a #ate %or pra!ti!al !o/pletion t-at /a
8e /an /ont-s 8a!k.
Go88o G revie&e# t-e a"t-orities an# %o"n# t-at none esta8lis-e# t-at "pon or#erin0
an ite/ o% extra &ork t-ere &as eit-er an extension o% ti/e %or ea!- ite/D or i% an
extension &as not 0rante#D t-en li<"i#ate# #a/a0es !ease# to r"n.
.-e &ei0-t o% a"t-oritD -e sai#E
J.Ken#s to s"pport t-e vie& t-at an appropriate extension !la"se /eets t-e pro8le/ o% a '"il#er
#ire!te# to #o extra &ork &-ilst #a/a0es %or late !o/pletion are r"nnin0 a0ainst -i/.
B"rt-er/oreD -e sai#E
)eit-er on prin!iple nor on t-e a"t-orities is it... ne!essar to -ave a !la"se t-at is 8ot- !apa8le
o% provi#in0 an extension an# in %a!t 8rin0s a8o"t an extension in ever !ase.
SoD i% t-e !la"se is s"!- t-at it provi#es t-e !apa!it %or relie% in extra &ork sit"ations a%ter t-e
Date o% 7ra!ti!al 1o/pletionD t-en t-e prin!iple o% prevention &ill not operate.
#.' 0otification as a condition precedent to make a claim
$n Wormald %ngineering &ty Ltd v "esources Conservation Co 1nternational
86
6o0ers
G -el# t-at !o/plian!e 8 t-e 1ontra!tor &it- t-e noti%i!ation provisions in t-e
variation !la"se o% a !ontra!t &as a !on#ition pre!e#ent to t-e 1ontra!tor?s
entitle/ent to !lai/ #ela !osts "n#er t-e variation !la"se.
.-e 1ontra!t &as an a/en#e# 4S 2124-1+28 &-i!- re<"ire# t-e 1ontra!tor to noti%
t-e S"perinten#ent i% a variation or#er &as likel to prevent it or preA"#i!e it %ro/
%"l%illin0 its o8li0ations "n#er t-e !ontra!t.
.-e #ire!t !ost o% t-e variations -a# 8een a0ree# an# pai#D 8"t t-e 1ontra!tor later
so"0-t to ar0"e t-at t-eir !o/8ine# e%%e!t le# to %"rt-er in!rease# !ost. 6o0ers G.
-el# t-at as t-e 1ontra!tor -a# not noti%ie# t-e S"perinten#ent o% t-is likeli-oo# &-en
t-e variations &ere or#ere#D t-e !lai/ &as 8arre# 8e!a"se it #enie# t-e
S"perinten#ent t-e opport"nit to re!onsi#er /akin0 t-e variation or#er.

85
:1+83; 2 41=6 1.
86
:1+88; 8 '1= 158F :1+8+; 41=6 28.

32

See Se!tion 8 %or %"rt-er #is!"ssion re0ar#in0 !on#itions pre!e#ent to !lai/in0 %or a
variation.
'. Is it or isn(t it a variation)
'.1 Introduction
.-e 1ontra!tor 0enerall "n#ertakes to !o/plete t-e &ork "n#er t-e !ontra!t. $n
ot-er &or#sD t-e 1ontra!tor "n#ertakes to !onstr"!t t-e &orks as #es!ri8e#. W-at
risks t-e 1ontra!tor ass"/es in respe!t o% t-is o8li0ation o8vio"sl &ill #epen# "pon
t-e ter/s o% t-e !ontra!t.
.-e %ollo&in0 #is!"ssion !onsi#ers sit"ations &-ere t-e 1ontra!tor /"st ass"/e t-e
risk :a8sent a provision provi#in0 ot-er&ise;D an# is "na8le to rel on t-e variation
!la"se to !lai/ an !o/pensation %or en!o"nterin0 t-e parti!"lar risk.
'.2 Impossible or impracticable desi"n
.-e 1ontra!tor /a en!o"nter #i%%i!"lties in atte/ptin0 to !arr o"t t-e &orks in t-e
/anner re<"ire# 8 t-e spe!i%i!ationsF to #o so /a 8e i/pra!ti!a8le or even
i/possi8le. .-is /a not 8e #is!overe# "ntil si0ni%i!ant !osts -ave 8een in!"rre# 8
t-e 1ontra!tor in t-e atte/pt. S"!- a pro8le/ #oes not arise 8e!a"se o% a #ire!tion
8 t-e S"perinten#ent to var t-e &orks an# isD t-ere%oreD not !o/pensa8le "n#er t-e
variation !la"se.
.-e %ollo&in0 !ases ill"strate t-is point.
$n 'le3ander .!orn v London Corporation
82
t-e 1it o% =on#on !ontra!te# &it- .-orn
to 8"il# a ne& 8ri#0e at 'la!k%riars. .-e spe!i%i!ation state# t-at t-e 1ontra!tors
&ere to !al!"late t-eir o&n <"antities. $t also in!l"#e# plans an# Se!tions o% t-e
existin0 8ri#0e. .-e !ontra!t state# t-at t-e plans &ere 8elieve# to 8e !orre!t 8"t t-e
a!!"ra! &as not 0"arantee#D an# t-e 1ontra!tor &as not to 8e entitle# to !-ar0e an
extra s-o"l# t-e &ork to 8e re/ove# prove /ore t-an in#i!ate# on t-e plans. .-e
!ontra!t %"rt-er re<"ire# t-e 1ontra!tor to satis% itsel% as to t-e nat"re o% t-e 0ro"n#
t-ro"0- &-i!- t-e %o"n#ations &ere to 8e !onstr"!te#.
.-e spe!i%i!ation state#E
.-e %o"n#ations o% t-e piers &ill 8e p"t in 8 /eans o% &ro"0-t iron !aissons as s-o&n on
#ra&in0 n"/8er 2. .-e !asin0 o% t-e lo&er part o% !aissons &ill 8e le%t per/anentl in t-e &ork.
.-e "pper partD &-i!- is %or/e# o% 8"!kle platesD is to 8e re/ove#.
4ll risk an# responsi8ilit involve# in t-e sinkin0 o% t-ese !aissons &ill rest &it- t-e 1ontra!tor
an# -e &ill 8e 8o"n# to e/plo #ivers or ot-er e%%i!ient /eans %or re/ovin0 an# over!o/in0
an o8sta!les or #i%%i!"lties t-at /a arise in t-e exe!"tion o% t-e &orks.
.-e &ork 8e0an in G"ne 1864. Ho&everD a%ter t-e !aissons prepare# as #ire!te# -a#
8een "se#D it &as %o"n# t-at t-e &o"l# not resist t-e external press"re o% t-e &ater
so t-at t-e piers o% t-e 8ri#0e -a# to 8e 8"ilt in#epen#entl o% t-e/. .i/e &as lost
an# t-e la8o"r &-i!- -a# 8een 0iven to t-e exe!"tion o% t-e ori0inal plans &as
&aste#. $t &as a#/itte# t-at t-e &ork #one "n#er t-e !ontra!t -a# 8een &ell #oneD
t-e !ontra!t pri!e &as #"l pai#D an# t-e !osts o% t-e extra &ork ren#ere# ne!essar
8 alterations &ere also pai#.
Ho&everD t-e 1ontra!tor !lai/e# !o/pensation %or t-e &aste# !ost o% t-e atte/pts to
exe!"te t-e ori0inal plans on t-e 8asis t-at t-e 7rin!ipal -a# i/pli!itl pro/ise# t-at
t-e &orks !o"l# 8e 8"ilt in t-e /anner spe!i%ie#.

82
1 4pp 1as 120 H=:*;F :1820; 4pp 1as 120.

38

.-e 1o"rt -el# t-at a 7rin!ipal #oes not pro/ise t-at !o/pletion a!!or#in0 to t-e
!ontra!t"al plans an# spe!i%i!ation is pra!ti!al or even possi8le an# a!!or#in0lD t-e
1ontra!tor &as not entitle# to t-e !o/pensation !lai/e#.
'.3 Latent conditions
.-e risk o% en!o"nterin0 latent or "n%oreseen !on#itions is a risk o% !onstr"!tion 8orne
8 t-e 1ontra!tor :a8sent an express provision in t-e !ontra!t &-i!- states
ot-er&ise;. .-is is a risk &-i!- /a event"ate &it-o"t an !-an0e to t-e ori0inal
&orksD orD alternativelD it /a event"ate as a res"lt o%D or %lo&in0 on %ro/D a variation
o% t-e &orks. .-e 1ontra!torD t-ere%oreD !annot rel on a variation !la"se to !lai/
!o/pensation %or en!o"nterin0 a#verseD "nexpe!te# site !on#itions
.-e %ollo&in0 !ases ill"strate t-is point.
$n "e an 'rbitration between Carr and t!e (!ire of Wodonga,
88
t-e 1ontra!tor a0ree#
to 8"il# a 8ri#0e %or t-e 7rin!ipal %or a l"/p s"/. .-e 1ontra!tor &as to satis%
-i/sel% !o/pletel as to t-e site an# ever !ir!"/stan!e !onne!te# &it- t-e &ork an#
provi#e %or all !ontin0en!ies.
.-e 1ontra!tor -a# to sink /etal !lin#ers an# %ill t-e/ &it- !on!rete. 7lans
atta!-e# to t-e spe!i%i!ation s-o&e# t-e 7rin!ipal -a# s"nk 8ore -oles in several
pla!es alon0 t-e line o% t-e propose# 8ri#0e 8"t not exa!tl &-ere t-e !lin#ers &ere
to 8e s"nk.
W-en sinkin0 t-e !lin#ersD t-e 1ontra!tor en!o"ntere# "n%oreseen o8sta!les in t-e
%or/ o% lar0e lo0s 8"rie# in t-e riverD all o% &-i!- in!rease# t-e !ost o% &ork 8 50R.
.-e 1ontra!tor !lai/e# rei/8"rse/ent o% t-e extra !ost "n#er t-e CvariationsC !la"se
as !ost o% extras or a##itions to t-e &ork.
.-e 1o"rt -el# t-e !lai/ %or rei/8"rse/ent %aile# asE
.-ere 8ein0 an "n!on#itional "n#ertakin0 to sink t-e !lin#ers an# no !o"ntervailin0 pro/ise...
on t-e part o% t-e 1o"n!ilD t-e &ork in respe!t o% &-i!- t-e !lai/s are /a#e !annot 8e eit-er
extrasD #eviations or alterations &it-in t-e /eanin0 o% t-e !ontra!t.
'.4 2-an"e in +uantities in a ,ill of 5uantities@Sc-edule of ;ates 2ontract
'.4.1 ,ills of 5uantities (variations(
.-e <"antities provi#e# in a 8ill o% <"antities "s"all #i%%er %ro/ t-e <"antities a!t"all
en!o"ntere#. W-et-er a 1ontra!tor is entitle# to 8e pai# %or variations in t-e 8ill or
<"antities &ill #epen# on t-e intention o% t-e parties as #eter/ine# 8 t-e !ontra!t"al
ter/s.
W-ere t-e 8ill o% <"antities #oes not %or/ part o% t-e l"/p s"/ !ontra!tD t-e
1ontra!tor?s o8li0ation to per%or/ t-e &orks %or a l"/p s"/ a/o"nt &ill #isentitle it
%ro/ !lai/in0 a##itional pa/ent %or in!reases in t-e <"antities.
8+
Ho&everD
!ontra!t"al provisions expressl statin0 t-e stat"s o% a 8ill o% <"antities /a or /a
not 8e eno"0- to over!o/e t-e 7rin!ipal?s potential lia8ilit in tort an# "n#er stat"te.
+0


88
J1+24K 5=6 56F :1+23; 30 4=6 5.
8+
"e 0uttall and Lynton and Barnstaple "ailway Co :1+8+; H"#son?s '1 :4t- e#; 22+F "e Ford * Co and Bemrose * (ons :1+02; H"#son?s '1
:4t- e#; 324.
+0
Bor exa/pleD stat"tor lia8ilit %or /islea#in0 an# #e!eptive !on#"!t "n#er t-e Competition and Consumer 'ct <=>= +Se!tion 18 o% t-e
4"stralian 1ons"/er =a& &-i!- is %o"n# in s!-e#"le 2 to t-e Competition and Consumer 'ct <=>=;.

3+

3n t-e ot-er -an#D i% t-e 8ill o% <"antities -as 8een expressl or i/plie#l
in!orporate# into t-e !ontra!t to #e%ine t-e &orksD t-en t-e 1ontra!tor &ill or#inaril
8e entitle# to 8e pai# %or in!reases in t-e <"antities as extra &ork.
$n &atman and Fot!ering!am Ltd v &ilditc!
+1
t-e 1ontra!tor provi#e# t-at t-e &orks
&ere to 8e #one %or a l"/p s"/ Caccording to t!e plans, invitations to tender,
specification and bills of 5uantitiesC. .-e 1o"rt -el# t-at t-e 8ills o% <"antities &ere to
8e re0ar#e# as #e%inin0 t-e a/o"nt o% &ork in!l"#e# in t-e l"/p s"/ pri!e so t-at i%
t-e 1ontra!tor &as re<"ire#D in or#er to !o/plete t-e &orkD to #o /ore &ork t-an &as
in t-e 8ills o% <"antitiesD it &as entitle# to 8e pai#.
$n 'rcos 1ndustries &ty Ltd v .!e %lectricity Commission of 0ew (out! Wales,
+2

*l!o/ !ontra!te# &it- 4r!os to 8"il# a po&er station "n#er a S!-e#"le o% 6ates
!ontra!t.
1la"se 2:a; o% t-e General 1on#itions o% 1ontra!t provi#e# *l!o/ &as lia8le to pa
t-e 1ontra!tor onl %or t-e a!t"al /eas"re# <"antit o% ea!- tpe o% &ork #one at t-e
respe!tive rates set %ort- in t-e s!-e#"le. .-e <"antities 0iven in t-e s!-e#"les &ere
expresse# as 8ein0 approxi/ate onl an# not 0"arantee# 8 *l!o/ to 8e !orre!t.
1la"se 11D t-e variation !la"seD provi#e# t-at 4r!os &as to var t-e &ork 8 &a o%
a##ition or o/ission &-en a"t-orise# 8 t-e S"perinten#ent. Wit-o"t 4r!os?
approvalD t-e total val"e o% t-e a##itions or o/issions %ro/ t-e &orks &as not to
ex!ee# 10 per !ent o% t-e !ontra!t pri!e.
D"rin0 t-e exe!"tion o% t-e &orksD it &as %o"n# t-at t-e a!t"al <"antities o%
eart-&orks an# !on!rete &orks %ell s-ort o% t-e <"antities t-at -a# 8een esti/ate# in
t-e s!-e#"le 8 /ore t-an 10 per!ent.
4r!os ar0"e# t-at t-e s-ort%all in a!t"al <"antities &as an o/issionD &-i!- -a# not
re!eive# approval 8 4r!osD &it-in !la"se 1.
.-e 1o"rt o% 4ppeal a!kno&le#0e# t-at it /a 8e ne!essar to 0ive a restri!te# or
<"ali%ie# /eanin0 to CvariationsC &-ere t-e parties "se t-at ter/ &it- a s!-e#"le o%
rates an# "nani/o"sl -el# t-at t-e variation !la"se &as !on!erne# onl &it-
variations in t-e nat"re o% t-e &ork to 8e #one an# not &it- variations in t-e <"antities
&-i!- &ere nee#e# to per%or/ t-at &ork an# t-ere%ore t-e approval o% 4!ros &as not
re<"ire#.
B"rt-erD t-e 1o"rt -el# t-at t-e &or# ?o/issions? in t-e variation !la"se #i# not exten#
to a #i%%eren!e 8et&een esti/ate# an# a!t"al <"antitiesD arisin0 %ro/ a #i%%eren!e
8et&een t-e #i/ensions an# levels o% t-e &ork as s-o&n on t-e #ra&in0s
a!!o/panin0 t-e ten#er an# t-e #i/ensions an# levels o% &ork s-o&n on t-e a!t"al
!onstr"!tion #ra&in0s s"8se<"entl s"pplie#.
.-e 1o"rt -el#E
.-e reason %or -avin0 a s!-e#"le o% rates !ontra!t is t-at t-e extent o% t-e &ork !annot at t-e
o"tset 8e pre#i!ate# so t-at a !ontra!t pri!e /a 8e %ir/l state#.
'"t variations in t-e levels an# #i/ensions o% t-e &ork are inte0ral to a s!-e#"le o% rates
!ontra!t. .-e Ctotal val"e o% t-e &orkC !an never 8e #eter/ine# "ntil t-e extent o% t-e &ork -as
8een #eter/ine#
.-e levels an# #i/ensions 0iven on t-ese #ra&in0s an#>or in t-e spe!i%i!ation are inten#e# to
0ive onl a 0eneral in#i!ation o% t-e &orks. 1onstr"!tion #ra&in0s an#>or #etails iss"e#
p"rs"ant to t-e !ontra!t /a 0ive levels an#>or #i/ensions #i%%erin0 s"8stantiall %ro/ t-ose

+1
:1+04; H"#son?s '. 1. :4t- e#; 368.
+2
J1+23K 2 )SW=6 186.

40

0iven in t-e "n#er /entione# #ra&in0s an#>or spe!i%i!ation. $t is e/p-asise# t-at t-e !ontra!t
!overs t-e !arrin0 o"t o% t-e &orks s-o&n on t-e !onstr"!tion #ra&in0s an# #etails.
.-e !ontra!t pri!e t-ere%ore &as to 8e !al!"late# 8 /"ltiplin0 t-e actualD not t-e
esti/ate#D <"antit o% ea!- ite/ 8 t-e a0ree# rate.
$n Commissioner for Main "oads v "eed and (tuart &ty Ltd
+3
t-e !ontra!t &as to 8e a
l"/p s"/ !ontra!t &it- t-e l"/p s"/ a/o"nt 8ein0 t-e 0rosse# "p total o% vario"s
ite/s at esti/ate# <"antities an# rates an# pri!es in a s!-e#"le &-i!- &as pri!e# 8
t-e 1ontra!tor. .-e 1ontra!tor pri!e# an ite/ %or approxi/atel 4+D200 !"8i! ar#s
o% topsoil to 8e pla!e# in t-e %inis-e# e/8ank/ents. .-e spe!i%i!ation provi#e#E
$% s"%%i!ient top soil to /eet t-e re<"ire/ents o% t-e Works !annot 8e o8taine# &it-in t-e ri0-t o%
&aD t-e *n0ineer /a #ire!t t-e !ontra!tor to o8tain top soil %ro/ ot-er approve# lo!ations.
.-e s!-e#"le also in!l"#e# a rate onl o% S3 :&it- no esti/ate# or 0rosse# "p
a/o"nt; %or i/portin0 an# pla!in0 topsoil %ro/ o"tsi#e t-e site. 4s it "n%ol#e#D t-ere
&as onl 25000 !"8i! ar#s o% topsoil availa8le on site an# t-e a!t"al a/o"nt o%
topsoil re<"ire# to 8e pla!e# in t-e %inis-e# e/8ank/ents &as over 60D000 !"8i!
ar#s.
.-e Hi0- 1o"rt -el# t-at t-e 1ontra!tor?s overall l"/p s"/ pri!e in!l"#e# t-e pla!in0
o% an a/o"nt o% topsoil ne!essar %or t-e !ontra!t re<"ire/entsD if it could be taken
from t-e siteD &it-o"t an in!rease in t-e !ontra!t s"/. Ho&everD in t-e event o%
topsoil nee#in0 to 8e i/porte#D t-e 1ontra!tor &as entitle# to 8e pai# t-e S3 rate %or
&-atever <"antit nee#e# to 8e i/porte#D an# &-et-er or not it ex!ee#e# t-e ori0inal
total esti/ate# <"antities o% topsoil.
$n 1n t!e matter of an 'pplication by -ueensland %lectricity Commission,
+4
Do&sett G
state#E
.-ere is a %"n#a/ental #i%%eren!e 8et&een li/its o% a!!"ra! an# li/its o% per/issi8le
variations.
=i/its o% a!!"ra! !on!ern ina!!"ra!ies in esti/ates o% t-e a/o"nt o% &ork involve# in a
parti!"larD i#enti%ia8le task. 4s pointe# o"t 8 Ga!o8s 7 in 4r!os $n#"striesD it is o% t-e nat"re o%
a s!-e#"le o% rates !ontra!t t-at t-e exa!t a/o"nt o% &ork to 8e per%or/e# &ill not 8e kno&n
&it- !ertaint "ntil t-e &ork -as 8een !o/plete#. )onet-elessD ten#ers are "s"all invite# an#
/a#e "pon t-e 8asis o% t-e ran0e o% esti/ate# <"antities. $n an appropriate !aseD t-e 7rin!ipal
or t-e 1ontra!tor /a !-oose to stip"late t-e li/its or a!!"ra! %or t-ose esti/ates. .-is &ill
#epen# "pon t-e a0ree/ent /a#e 8 t-e partiesIt-at is <"ite a #i%%erent sit"ation %ro/ t-at
&it- &-i!- Jt-e !la"se in <"estionsK #eals. .-e latter !la"se is inten#e# to #eal &it- variations
in t-e &ork to 8e per%or/e#D &-ereas li/its o% a!!"ra! relate to t-e a!!"ra! o% t-e esti/ates
o% &ork a0ree# to 8e per%or/e#.
Mitsui v 'ttorney9 /eneral of #ong 8ong
+5
&as a 7riv 1o"n!il !ase &-i!- ill"strates
t-e &illin0ness o% t-e 1o"rts to !on!l"#e t-at "n#er s!-e#"le o% rates !ontra!tsD t-e
1ontra!tor ass"/es t-e risk o% #ra/ati!all in!rease# <"antities !o/pare# to t-ose
expe!te# an# in t-e !ontra!t #o!"/ents. $n t-at !ase an ite/ %or linin0 -a# in!rease#
8 a %a!tor o% ei0-t an# steel ri8s 8 a %a!tor o% sevent t-ree.
Most stan#ar# %or/ !ontra!ts expressl #eal &it- t-is iss"e 8 statin0 t-e extent to
&-i!- t-e 8ill o% <"antities is to %or/ part o% t-e !ontra!t an# i% t-e 8ill o% <"antities
%or/s part o% t-e !ontra!tD provision is /a#e %or a#A"st/ents to t-e !ontra!t s"/
&-ere t-e a!t"al <"antities #i%%er to t-ose spe!i%ie#. Bor exa/pleD !la"se 2.2 o% 4S
4000 ena8les t-e parties to sele!t eit-er 4lternative 1 :&-ere t-e 8ill o% <"antities is to
%or/ part o% t-e !ontra!t; an# 4lternative 2 :&-ere t-e 8ill o% <"antities is not to %or/

+3
J1+24K 131 1=6 328.
+4
:1++1; 10 '1= 143.
+5
J1+86K 33 '=6 1.

41

part o% t-e !ontra!t;. 1la"se 2.4 t-en provi#es t-at t-e 8ill o% <"antities are esti/ates
onl. )ot&it-stan#in0 t-isD !la"se 2.5 ena8les t-e pri!e %or an ite/ to 8e a#A"ste# :i%
t-e a#A"st/ent re<"ire# is /ore t-an O400; i% t-e <"antit s-o&n in t-e 8ill o%
<"antities is /ore or less. See also !la"ses 3.2D 3.3D an# 4 o% 4S 2124.
4s note# in Se!tion 2.4D 71-1 #oes not provi#e %or 8ills o% <"antities.
'.4.2 Sc-edule of ;ates (variations(
9#

Man s!-e#"le o% rates !ontra!ts #o not #i%%er in an si0ni%i!ant &a %ro/ 8ills o%
<"antities or ot-er %or/s o% "nit pri!e or /eas"re# !ontra!t in t-eir le0al e%%e!ts. 4n
pro8le/s o% interpretation re0ar#in0 &-et-er &ork is or is not in!l"#e# in t-e rate &ill
8e t-e sa/e as in 8ills o% <"antities !ontra!ts.
S"!- !ontra!ts /a 8e "se# &-ere t-ere is no %inalise# s!ope o% &orks or #esi0n
availa8le at t-e ti/e o% !ontra!tin0 so t-at t-e !ontra!t re<"ires t-e 1ontra!tor to #o
&-atever &ork /a 8e re<"ire# at t-e rates an# pri!es in t-e s!-e#"le. .-is /eans
t-at ?variations? in t-e "s"al sense &ill not 8e involve#.
Ho&everD i% t-e &ork #ire!te# is !onsi#ere# to 8e s"%%i!ientl #i%%erent to t-e kin#
allo&e# %or in t-e s!-e#"le o% rates an# !annot properl 8e !-ara!terise# as
ne!essar an!illar &orkD so/e #i%%erent rate or pri!e /a nee# to 8e a0ree#.
So/e 1ontra!torsD in provi#in0 a s!-e#"le o% ratesD /a atte/pt to Cloa# t-e ratesCD
t-at isD p"t a ver pro%ita8le pri!e on a rate &-i!- it ass"/es &ill 8e appli!a8le to
likel variations an# a lo& pri!e on rates not likel to 8e "se#. Bor exa/pleD t-e
!ontra!t in (ist Constructions v (tate %lectricity Commission of Victoria,
+2
&as %or a
l"/p s"/ a/o"nt 8"t !ontaine# a s!-e#"le o% rates %or t-e ex!avation o% "ns"ita8le
/aterial. .-e !ontra!tD &isel !ontaine# a !la"se prote!tin0 t-e 7rin!ipal %ro/
Cloa#e# ratesC as %ollo&sE
$% t-e *n0ineer is not satis%ie# t-e rate in respe!t o% an ite/ is a proper rateD -avin0 re0ar# to
!"rrent pri!es in t-e in#"str %or t-at ite/D -e &illD a%ter !ons"ltation &it- t-e 1ontra!torD %ix a
rate %or s"!- ite/ &-i!- &ill 8e t-e rate 8 &-i!- t-e pri!e &ill 8e varie#.
'rookin0 G opine# as %ollo&s on t-e pra!ti!e o% Cloa#in0 ratesCE
.-e nee# %or so/e !ontra!t"al provisionD eit-er re<"irin0 t-e 8"il#er to a!t reasona8l in pri!in0
t-e 8ill or e/po&erin0 t-e person a#/inisterin0 t-e !ontra!t to reAe!t t-e rates in t-e pri!e# 8illD
arises %ro/ t-e notorio"s pra!ti!e o% t-ose &-o ten#er %or 8"il#in0 an# en0ineerin0 !ontra!ts o%
/akin0 &-at -as 8een #es!ri8e# as an "n8alan!e# 8i#D t-at is to saD o% pri!in0 t-e 8ill in a &a
&-i!-D &it-o"t a%%e!tin0 t-e a/o"nt o% t-e ten#erD is !al!"late# to ens"re to t-eir %inan!ial
a#vanta0e. 4 ten#erer /a p"t #o&n lo& rates %or ite/s &-ere -e 8elieves t-at t-e Cas 8"iltC
<"antities are likel to 8e less t-an t-e 8ille# <"antitiesD an# -i0- rates %or ite/s &-ere -e
8elieves t-e Cas 8"iltC <"antities &ill ex!ee# t-e <"antities in t-e 8ill. He /a also in!rease -is
rates %or earl &ork an# re#"!e -is rates %or later &ork in or#er to 0ive -i/ a s"8stantial !as-
%lo& at an earl sta0e. .-e pra!ti!e is also kno&n as Cloa#in0C t-e rates.
$n Bell Bros &ty Ltd v Metropolitan Water (upply, (ewerage and Drainage Board
+8
t-e
1ontra!tor provi#e# rates &-i!- #i# not a!!"ratel re%le!t its !osts o% per%or/in0 t-e
&ork. 4s a res"ltD t-e a/o"nt !lai/e# 8 t-e 1ontra!tor #i# not !over t-e
1ontra!tor?s !osts. .-e 1o"rt -el# t-at t-e 1ontra!tor !o"l# not !lai/ t-e extra !osts
as a variation an# t-at it &o"l# not inter%ere &it- t-e !ontra!t"al risk allo!ation.
4lso re%er to t-e !ases #is!"sse# a8ove "n#er C'ills o% ("antitiesC at Se!tion 2.4.1
&-i!- also !on!ern iss"es &it- s!-e#"les o% rates.

+6
#udson$s Building and %ngineering ContractsD :12t- e#D 2010;D 28+.
+2
J1++2K 56 5+2.
+8
@nreporte#D Western 4"stralia S"pre/e 1o"rtD 'rins#en GD 30 3!to8er 1+80F :1+80; 41=D 343.

42

'. 2ontractor provides 64tra or ,etter 5ualit% 1ork
$% a 1ontra!tor #oes extra or 8etter <"alit &ork &it-o"t a #ire!tion %ro/ t-e
S"perinten#entD !an t-e 1ontra!tor !lai/ %or t-e extra &ork as a variation9
$n "e C!ittic and .aylor,
++
it &as -el# t-at 0enerall speakin0D t-e ans&er is no. .-e
1o"rt set o"t t-e %ollo&in0 0eneral r"lesE
:a; an ite/ spe!i%i!all provi#e# %or in t-e !ontra!t &as not an extraF
:8; i% t-e 1ontra!tor s"pplie# /aterial o% a 8etter <"alit t-an t-e /ini/"/ <"alit
ne!essar %or t-e %"l%il/ent o% t-e !ontra!t &it-o"t an instr"!tions - express or i/plie#
- %ro/ t-e 7rin!ipal to #o soD -e &as not entitle# to !-ar0e t-e extra !ost as an extraF
:!; i% t-e 1ontra!tor #i# &orkD or s"pplie# /aterials not !alle# %or 8 t-e !ontra!t :plans or
spe!i%i!ations; &it-o"t eit-er instr"!tions - express or i/plie# - %ro/ t-e 7rin!ipal or t-e
!onsent o% t-e 7rin!ipalD -e &as not entitle# to !-ar0e %or t-is a##itional &ork or
/aterials as an extraF an#
:#; i% t-e 1ontra!tor #i# &orkD or s"pplie# /aterialsD not !alle# %or 8 t-e !ontra!t 8"t on
instr"!tions - express or i/plie# - o% t-e 7rin!ipalD -e &as entitle# to !-ar0e %or s"!-
a##itional &ork or /aterials as an extra.
'.# T-e Superintendent directs 1ork as a Variation w-ic- is part of t-e 8ri"inal
Scope of 1ork
$t &o"l# see/ t-at t-e 1ontra!tor &o"l# not 8e entitle# to extra pa/ent to #o !ertain
&ork i% t-at &ork &as alrea# %or/e# part o% t-e 1ontra!tor?s s!ope o% &ork. ' &a
o% ill"strationD in 0eodo3 Ltd v Boroug! of (winton and &endlebury
100
t-e *n0ineer
prevente# t-e 1ontra!tor %ro/ ex!avatin0 pipelines "sin0 a /a!-ine. .-e *n0ineer
also #ire!te# t-e 1ontra!tor not to la an pipes "ntil t-e &-ole o% t-e tren!-es -a#
8een ex!avate#. .-e 1ontra!tor !o/plie# &it- t-e *n0ineer?s #ire!tion an# !lai/e#
t-e a##itional !osts as variations. .-e 1o"rt -el# t-at t-e *n0ineer?s #ire!tions !o"l#
not 8e re0ar#e# as re<"irin0 t-e per%or/an!e o% a variation as t-e &ork &as alrea#
&it-in t-e 1ontra!tor?s s!ope o% &ork.
H"#son?s
101
!onten#s t-at t-is is so 8e!a"se t-ere &ill 8e no !onsi#eration %or an
pro/ise 8 t-e 7rin!ipal to pa %or it "n#er t-e /istaken i#ea t-at it &as a variation.
4lsoD in /ost !ontra!tsD a #ire!tion 8 t-e S"perinten#ent to exe!"te !ertain &ork
expressl state# 8 it to 8e a variation :8"t &-i!- %or/s part o% t-e 1ontra!tor?s
existin0 s!ope o% &orks; &ill not 8in# t-e 7rin!ipal as t-e S"perinten#ent -as no
a"t-orit to alter t-e ter/s o% t-e !ontra!t. 4!!or#in0lD i% a 1ontra!tor alle0e# t-at a
#ire!tion &as a variation an# re%"se# to !o/pl &it- t-e #ire!tion &it-o"t a pro/ise to
pa %or itD an# t-e S"perinten#ent t-en /a#e s"!- a pro/iseD t-e 7rin!ipal &o"l# not
8e lia8le %or s"!- a pro/ise. $n (!arpe v (ao &aulo "y Ga/es =G sai# o% s"!- a
pro/iseE
102

$t is per%e!tl n"#"/ pa!t"/ :a pro/ise not le0all en%or!ea8le %or &ant o% !onsi#eration;. $t is
a totall #istin!t t-in0 %ro/ a !lai/ %or pa/ent %or a!t"al extra &ork not in!l"#e# in t-e !ontra!t.

++
:1+54; 12 WW6 653.
100
:1+58; 5 '=6 38.
101
#udson$s Building and %ngineering ContractsD :12t- e#D 2010;D 806.
102
:1823; =.6. 8 1- 4pp. 5+2 an# 608.

43

'.' Anintentional variations
'.'.1 $irection to 2-an"e t-e 2ontractor(s Bet-od of 1orkin"
W-et-er t-e S"perinten#ent -as t-e po&er to #ire!t t-e 1ontra!tor as to an part o%
t-e 1ontra!tor?s /et-o# o% &orkin0D t-at isD its /et-o# o% a!-ievin0 t-e %inal res"lt o%
t-e per/anent &orkD &ill !learl #epen# "pon t-e ter/s o% t-e !ontra!t.
$% t-e po&er is not 0iven to t-e S"perinten#ent in t-e !ontra!tD t-e 1ontra!tor !an
i0nore an #ire!tion %ro/ t-e S"perinten#ent to a#opt an parti!"lar /et-o# o%
&orkin0.
103
$% t-e 1ontra!tor nevert-eless !o/pliesD not&it-stan#in0 t-e
S"perinten#ent?s la!k o% po&erD is t-e 1ontra!tor entitle# to !o/pensation9
$% t-e !ontra!t #oes 0ive t-e S"perinten#ent s"!- a po&erD t-e <"estion arises as to
&-et-er t-e 1ontra!tor /"st !o/pl &it- t-e #ire!tion &it-o"t a#A"st/ent to t-e
!ontra!t s"/ in t-e parti!"lar !ir!"/stan!esD %or exa/pleD &-ere t-e #ire!tion
!onstit"tes a variation "n#er t-e variation !la"se.
$n 0eodo3 Ltd v .!e Mayor, 'lderman * Burgesses of Boroug! of (winton *
&endlebury
104D
)eo#ox !ontra!te# to !arr o"t se&a0e &orks an# to la lines o%
se&ers. .-e rate %or lain0 se&ers in t-e s!-e#"le o% rates &as per lineal %oot
a!!or#in0 to #ept- an# &as expresse# to 8eE
in!l"sive o% all ex!avation an# re%illin0 in all tpes o% strataD ti/8erin0 o% ex!avationsD tren!-es
an# -ea#in0s an# spe!ial ti/8erin0 s"!- as !lose pointe# r"nners #riven 8elo& t-e invert o% t-e
se&er or ot-er %or/ o% approve# ne!essar s-eetin0 i% r"nnin0 san# is /et &it- or t-e nat"re o%
t-e soil #e/an#s itD s"8soil #rainsD s"/ps an# p"/pin0 as #es!ri8e# in !la"se 1 in
spe!i%i!ationD lo&erin0 an# -oistin0 pipesD et!.
.-ere &as no express provision as to t-e /et-o# o% ex!avation to 8e a#opte# 8"t
ti/8erin0 &as #ealt &it- in !la"se 6 o% t-e spe!i%i!ation as %ollo&sE
4ll ex!avations s-all 8e se!"rel ti/8ere# &it- s"ita8le ti/8er or alternative %or/ o% s-eetin0
:ot-er t-an ti/8er; as /a 8e an# &-ere ne!essarD to t-e satis%a!tion o% t-e en0ineer or
resi#ent en0ineer.
3t-er relevant provisions &ereE
1la"se 10E
.-e &orks s-all 8e !arrie# o"t "n#er t-e #ire!tion o% an# to t-e satis%a!tion o% t-e *n0ineerD an#
t-e 1ontra!tor s-all take instr"!tions onl %ro/ -i/ or -is #"l a"t-orise# representative or
representatives.
1la"se 18E
4ll t-e &orks s-all 8e exe!"te# &it- t-e /aterials spe!i%ie# o% t-e 8est o% t-eir respe!tive kin#sD
&it- t-e 8est &ork/ans-ip an# in t-e 8est /annerD to t-e satis%a!tion o% t-e *n0ineer. 4ll
/aterials !onsi#ere# 8 t-e *n0ineer to 8e "nso"n#D or not in a!!or#an!e &it- t-e
spe!i%i!ationD s-all 8e i//e#iatel re/ove# 8 t-e 1ontra!tor at -is o&n expense an# all &ork
!arrie# o"t i/per%e!tl or &it- %a"lt /aterials /"st 8e i//e#iatel re/ove# an# properl
repla!e# 8 t-e 1ontra!tor to t-e satis%a!tion o% t-e *n0ineer. S-o"l# t-e 1ontra!tor ne0le!t or
re%"se to #o t-isD t-e *n0ineer s-all -ave po&er to e/plo ot-er persons %or t-is p"rpose an# to
pa t-e sa/e o"t o% an /onies t-at /a t-en 8e or s-all 8e!o/e #"e to t-e 1ontra!torD or t-e
e/ploers /a re!over t-e a/o"nt o% s"!- expense 8 a!tion o% la&.
)eo#ox inten#e# to ex!avate -al% t-e tren!-es "sin0 an ex!avator an# 8atter t-e
si#es to a slope.

103
Wells v 'rmy * 0avy Co9?perative (ociety :1+02; 2 H"#son?s '"il#in0 1ontra!tsD :4t- e#;D p 346F :1+02; 86 =. 264.
104
:1+58; 5 '=6 34.

44

.-e S"perinten#ent prevente# it %ro/ so #oin0 an# -is re<"ire/ents &ere s"!- as to
/ake t-e ex!avator o% little "se %or ex!avatin0 or 8a!k%illin0. .-e S"perinten#ent also
re<"ire# t-e 1ontra!tor not to la pipes "ntil &-ole tren!-es -a# 8een ex!avate# %ro/
/an-ole to /an-ole.
.-e res"lt &as t-at )eo#ox &ante# to !arr o"t t-e ex!avations %or t-e se&ers an#
pipes in one &a &-ereas t-e S"perinten#ent insiste# on t-e/ !arrin0 it o"t in a
#i%%erent &a.
.-e ar8itrator %o"n# t-at )eo#ox?s propose# /et-o#s &ere reasona8le. )eo#ex
!lai/e# t-e in!rease# !osts as a variation.
Diplo!k G -el# t-at t-e in!rease# !osts &ere not re!overa8le.
His Hono"r state#E
$ t-ink t-at in 0eneralD !la"ses 10 an# 18 0ive to t-e *n0ineer t-e po&er to #eter/ine t-e
/et-o# 8 &-i!- &ork are to 8e exe!"te#D s"!- as t-e ex!avation o% tren!-es &-ere t-ere are
alternative /et-o#s possi8leF an# $ t-inkD tooD t-at !la"se 6 o% t-e spe!i%i!ationD on its tr"e
interpretationD entitles t-e *n0ineer to #e!i#e &-en an# &-ere ti/8erin0 or ot-er %or/s o%
s-eetin0 are to 8e "se#. His #e!ision as to &-et-er one /et-o# or anot-er is satis%a!tor to
-i/ /"stD o% !o"rseD 8e an -onest oneD 8"t it #oes not see/ to 8e t-at t-e 1orporation &arrants
-is !o/peten! or skillD or &arrants t-at -is #e!ision s-all 8e reasona8le.
$ #o not t-ink t-at t-e !lai/ants !an !lai/ t-at t-e *n0ineer?s #e!ision to re<"ire t-e
ex!avations to 8e #one 8 a parti!"lar /et-o# - &-i!- t-e ar8itrator -as %o"n# to 8e
"nreasona8le - !onstit"tes an 8rea!- o% !ontra!t 8 t-e 1orporationF norD in#ee#D #o t-e p"t
t-eir !ase in t-is &a. .-e !lai/ t-at t-e *n0ineer?s re<"ire/ents &ere a Cvariation o% or
a##ition to t-e &orksC &it-in t-e /eanin0 o% !la"se 20D or an extra &it-in t-e /eanin0 o% !la"se
21D an# t-at t-e are a!!or#in0l entitle# to /ake an extra !-ar0e t-ere%or.
$n a !ontra!t in &-i!- t-ere is no spe!i%i! /et-o# o% !arrin0 o"t parti!"lar operations ne!essar
to !o/plete t-e &orks set o"tD an# w-ic- provides merel% t-at t-e% s-all be carried out
under t-e 6n"ineer(s directions and in t-e best manner to -is satisfactionD $ %in# 0reat
#i%%i!"lt in seein0 -o& a #ire!tion 8 t-e *n0ineer inti/atin0 t-e /anner in &-i!- t-e
operations /"st 8e !arrie# o"t in or#er to satis% -i/ !an 8e a Cvariation o% or a##ition to t-e
&orksC. $t see/s to /e to 8e no /ore t-an &-at t-e !ontra!t itsel% !alls %orD provi#e# onl t-at
t-e *n0ineer is %air an# i/partial in /akin0 -is #e!ision to 0ive s"!- #ire!tion.
Diplo!k G also -el# t-at t-e 1orporation #i# not &arrant t-at t-e *n0ineer &ill a!t
reasona8l an# is not lia8le i% t-e *n0ineer a!ts "nreasona8l.
.-e 1ontra!tor -a# no re/e# a0ainst t-e 1orporation /erel 8e!a"se t-e
*n0ineer?s #e!ision &as "nreasona8le 8"t 0iven -onestlD t-at isD &it-o"t /is!on#"!t.
.&o later *n0lis- !ases %"rt-er #e/onstrate t-at &-et-er a #ire!tion to alter t-e
se<"en!e or /et-o# o% &ork !onstit"tes a variation &ill #epen# on t-e ter/s o% t-e
!ontra!t.
$n 8itsons (!eet Metal Ltd v Matt!ew #all Mec!anical * %lectrical %ngineers Ltd
105

!la"se 20:1; provi#e# t-at a variation in!l"#e# an alternation o% t-e /anner or
se<"en!e o% &orkin0. Ho&everD one o% t-e s!-e#"les to t-e !ontra!t re<"ire# t-at
&orks 8e !arrie# o"t Cin a!!or#an!e &it- t-e #i!tatesC o% t-e site /ana0e/ent tea/.
.-e 1o"rt !on!l"#e# t-at t-e 1ontra!tor &as entitle# to !arr o"t its &ork in
a!!or#an!e &it- t-e pro0ra/ an# i% t-e 3&ner t-en instr"!te# t-e 1ontra!tor to
#epart %ro/ it is so/e respe!tD an alteration o% se<"en!e an# possi8l o% /anner
&o"l# o!!"r. Ho&everD as t-e pro0ra/ !o"l# onl 8e a 0"i#e &it-o"t !ontra!t"al
e%%e!t t-at none o% t-e instr"!tion &-i!- -a# t-e e%%e!t o% alterin0 t-e /anner or
se<"en!e o% &ork !arrie# o"t !onstit"te# variations as #e%ine#.

105
:1+8+; 42 '=6 82F 12 1on=6 116.

45

$n 4ors!ire Water 'ut!ority v (ir 'lfred Mc'lpine * (on +0ort!ern , Ltd,
106
t-e
1ontra!tor s"8/itte# a &ork C/et-o# state/entC &-i!- &as !alle# %or 8 t-e !ontra!t
an# &-i!- &as %o"n# 8 t-e 1o"rt to -ave 8een in!orporate# in t-e !ontra!t
#o!"/ents 8 re%eren!e in t-e %or/al instr"/ent o% a0ree/ent. 4n iss"e arose as to
&-et-er t-e 1ontra!tor &as entitle# to a variation %or -avin0 to !-an0e its se<"en!e
o% &ork. .-e 1o"rt -el# t-at t-e iss"e #epen#e# on &-et-er t-e /et-o# state/ent
&as a spe!i%ie# se<"en!e o% !onstr"!tion an# i% it &asD t-e 1ontra!tor &as entitle# to
8e !o/pensate# %or t-e !-an0e as a variation.
.-e 3&ner ar0"e# t-at t-e C/et-o# state/entC &as no /ore t-an a pro0ra/ &-i!-
t-e 1ontra!t re<"ire# to s"8/it "n#er !la"se 14:1; &-i!- provi#e# t-at t-e 1ontra!tor
/"st s"8/it a pro0ra/ to t-e *n0ineer %or -is approval s-o&in0 t-e or#er o%
pro!e#"re in &-i!- -e proposes to !arr o"t t-e Works. .-e 1ontra!tor ar0"e# t-at
t-e C/et-o# state/entC &as a spe!i%ie# se<"en!e an# /et-o# &-i!- it &as 8o"n#
an# entitle# to %ollo&. .-e 1o"rt -el# t-at t-e C/et-o# state/entC &as a spe!i%ie#
se<"en!e or /et-o# o% !onstr"!tion an# t-at a #ire!tion to #epart %ro/ it &as a
variation.
4S 4000 :!la"se 32; an# 4S 2124 :!la"se 33.1; 8ot- provi#e t-at t-e S"perinten#ent
/a #ire!t in &-at or#er an# at &-at ti/e t-e vario"s sta0es or parts o% t-e &ork
"n#er t-e 1ontra!t s-all 8e per%or/e#. .-e !la"ses also provi#e t-at i% !o/plian!e
&it- s"!- a #ire!tion !a"ses t-e 1ontra!tor to in!"r /ore or less !ostsD t-e #i%%eren!e
&ill 8e val"e# as a variation.
)7W1 :!la"se 33.3 an# 33.4; provi#es t-at t-e S"perinten#ent &ill -ave %"ll po&er to
#ire!t in &-at or#er an# at &-at ti/e t-e vario"s sta0es or parts o% t-e &ork s-all 8e
per%or/e# i% t-e 1ontra!tor -as not provi#e# a !onstr"!tion pro0ra/ "n#er !la"se 33.
B"rt-erD t-e 1ontra!tor &ill onl 8e entitle# to !o/pensation %or a #ire!tion 0iven
"n#er !la"se 33.3 i% t-e #ire!tion &as #"e to an a!tD #e%a"lt or o/ission o% t-e
7rin!ipal or t-e S"perinten#ent.
71-1 -as no s"!- provision an# t-ere%ore t-e 1ontra!t 4#/inistrator &o"l# -ave no
entitle/ent to #ire!t t-e 1ontra!tor to alter t-e or#er or ti/in0 o% t-e &orks ex!ept %or
a sa%et !on!ern "n#er !la"se 8.16.
'.'.2 Substitutes and options in t-e specification
Spe!i%i!ations so/eti/es stip"late a parti!"lar 8ran# na/e o% /aterials or sste/ 8"t
allo& s"8stit"tion o% /aterials or pro#"!ts Ce<"al toC or Csi/ilar toC t-at stip"late#.
$n Brodie v Corporation of Cardiff,
102
t-e !ontra!t e/po&ere# t-e *n0ineer to or#er
variations. $t provi#e# t-at t-e 1orporation &as not to 8e lia8le %or t-e !ost o%
variations &it-o"t instr"!tions in &ritin0 8 t-e *n0ineer. .-e spe!i%i!ation re<"ire# a
reservoir to 8e !onstr"!te#D t-e !la p"##le to 8e %or/e# o% 0oo#D to"0-D tena!io"s
8l"e !la. $t %"rt-er state# t-at !la s"ita8le %or t-e &ork could be o8taine# at a
!ertain propertD 8"t t-at t-e 1ontra!tor /"st Cobtain all t!e clay t!at will be re5uired
of 5uality e5ual in every respect to t!e samples mared $Clay for &uddle Wall$ in t!e
%ngineer$s office, eit!er from @t!e nominated propertyA or elsew!ereC.
.-e 1ontra!tor &is-e# to o8tain t-e !la not %ro/ t-e no/inate# propert 8"t %ro/
anot-er propertD at /ore attra!tive rates.

106
:1+85; 32 '=6 114.
102
J1+1+K 41 332.

46

Ho&everD t-e *n0ineer !onsi#ere# t-at t-e alternate !la #i# not !o/pl &it- t-e
spe!i%i!ation an# #ire!te# t-e 1ontra!tor to "se t-e !la %ro/ t-e no/inate# propert
sain0 it &as t-e onl !la &-i!- &o"l# /eet t-e spe!i%i!ation.
.-e 1ontra!tor /aintaine# t-e spe!i%i!ation 0ave -i/ an optionD an# t-at t-e #ire!tion
o% t-e *n0ineer &as a #ire!tion to !arr o"t extra &ork. Ho&everD t-e *n0ineer
re%"se# to 0ive a &ritten #ire!tion to t-e 1ontra!tor.
.-e 1ontra!tor a0ree# to !o/pl an# !arrie# o"t t-e &ork. 3n t-e !o/pletion o% t-e
&ork t-e 1ontra!tor re%erre# t-e /atter to ar8itration.
.-e ar8itrator -el# t-e 1ontra!tor &as !orre!t an# a&ar#e# !o/pensation as i% a
&ritten variation #ire!tion -a# 8een 0iven. .-e Ho"se o% =or#s re%"se# to inter%ere
&it- t-e a&ar#.
$n (tate "ail 'ut!ority of 0(W v Baulderstone #ornibroo &ty Ltd,
108
'a"l#erstone
Horni8rook :'H; entere# into a l"/p s"/ !ontra!t &it- t-e State 6ail 4"t-orit :S64;
to !onstr"!t !ertain roa# &orks. .-e 0eneral !on#itions o% !ontra!t &ere in t-e %or/
o% )7W1 3 :1+81;. .-e !ontra!t pri!e &as a l"/p s"/ o% O3D460D000. .-e !ontra!t
#o!"/ents in!l"#e# as %ollo&sE
S!-e#"le o% 4/o"nts
.-e ten#erer s-all !o/plete t-e s!-e#"le 8 insertin0 its o&n esti/ate# <"antitiesD rates an#
a/o"nts %or ever ite/ in t-e s!-e#"le an# t-e a/o"nts as exten#e# s-all on a##itionD e<"al
t-e l"/p s"/ ten#er a/o"nt.
6ates an# pri!es s-o&n in t-e S!-e#"le o% 4/o"nts s-allD &-ere relevantD 8e "se# as a 8asis
%or !o/p"tin0 t-e val"e o% an variations an# &ill 8e "se# 8 t-e S"perinten#ent to assist -i/ in
assessin0 t-e val"e o% &ork %or pro0ress pa/ents.C
.-e CS!-e#"le o% 4/o"nts )o. 3 - *art-&orksC !ontaine# t-e %ollo&in0E
$te/ Des!ription @nit ("antit 6ate 4/o"nt
*x!avation in 3.6
303 - 1"t to %ill /3 6D300 6.0 32D800
304 - ,orrow to fill /3 24D500 +.8 240D100
3021 Sele!te# /aterial
in e/8ank/ent at
8ri#0e a8"t/ent
:7635$S$3)4=
(@4).$.Y;
/3 11D000 15.0 165D000

.-e Spe!i%i!ations !ontaine# t-e %ollo&in0 relevant provisionsE
1.4 Source of *ill Baterial
.-e 1ontra!tor?s attention is #ra&n to a retar#ation 8asin propose# 8 1a/p8ellto&n
1it 1o"n!il an# lo!ate# a#Aa!ent to '"n8"rr 1"rran 1reekD &-i!- is a possi8le
so"r!e o% %ill %or e/8ank/ents. 1on#itions o% a!!ess to t-is 8asin site s-o"l# 8e
as!ertaine# 8 !onta!tin0 Mr G Bo&ler o% 1a/p8ellto&n 1it 1o"n!il in t-e %irst
instan!e :telep-one 046-20 1501;.
2.8 Selected Baterials Cone
.-e e/8ank/ent at ea!- 8ri#0e a8"t/ent s-all 8e !onstr"!te# %ro/ sele!te# i/porte#
/aterial an# s-all exten# as s-o&n on t-e #ra&in0s.

108
:1+8+; 5 '1= 112 :S"pre/e 1o"rt o% )SW;.

42

3.02 6mbankment 2onstruction
:a; *xtent o% Work
*/8ank/ent !onstr"!tion s-all in!l"#e t-e treat/ent an# !o/pa!tion o% 3
/aterials in t-e areas "pon &-i!- e/8ank/ents are to 8e pla!e#D pla!in0 an#
!o/pa!tin0 t-e sele!te# /aterialD laer in !"ttin0s an# e/8ank/entsD t-e
pla!in0 an# !o/pa!tin0 o% approve# /aterial &it-in areas %ro/ &-i!-
"ns"ita8le /aterial -as 8een re/ove#D an# t-e pla!in0 an# !o/pa!tin0 o%
e/8ank/ent /aterial in t-e -olesD pits an# #epressions &it-in t-e %o"n#ation
area.
:e; 7la!in0 Billin0 in */8ank/ents
.-e /aterial %or e/8ank/ents s-all 8e obtained from t-e cuttin"s wit-in
t-e work= e4cept w-en borrow or imported fill is aut-orised b% t-e
Superintendent.
:n; $/porte# Bill
W-ere i/porte# %ill is re<"ire# to !o/plete t-e &orkD t-e <"alit o% t-e /aterial
s-all /eet t-e %ollo&in0 re<"ire/ents...C.
W-ere t-e S"perinten#ent a"t-orises t-e 1ontra!tor to 8orro& /aterial %ro/
&it-in t-e roa# reserveD pa/ent &ill 8e /a#e %or t-e /aterial at t-e s!-e#"le
rate %or !"t to %ill ex!ept &-ere a"t-orise# 8orro& pits &it-in t-e roa# reserve
are /ore t-an t&o :2; k/ %ro/ t-e point o% a"t-orise# #eliverD a##itional
pa/ent &ill 8e /a#e %or -a"la0e at t-e rate o% t-irt :30; !ents per 8ank
!"8i! /etre %or ea!- k/ in ex!ess o% t&o :2; k/ &it- a /axi/"/ pa/ent o%
O2.50 per !"8i! /etre %or -a"la0e.
'H re<"este# t-e S"perinten#ent to no/inate 8orro& pits %or t-e s"ppl o% 8"lk
/aterial %or e/8ank/ent !onstr"!tion. .-e S"perinten#ent #e!line# to per/it an
8orro& %ro/ &it-in t-e roa# ali0n/entD a#visin0 t-at t-ere &as a Cpossi8le so"r!e o%
%ill /aterial 0iven in !la"se 1.4 o% t-e Spe!i%i!ationC. .-e 1ontra!tor i/porte# 36D+60
!"8i! /etres o% %ill an# !lai/e# a variation %or i/portin0 %ill.
.-e S"perinten#ent respon#e# in a letter #ate# 4 )ove/8er 1+86E
.-e ten#er #o!"/ents #o not in#i!ate t-e lo!ation o% an 8orro&e# pits &it-in t-e roa# reserve
8"t #o in!l"#e t-e #es!ription o% a possi8le so"r!e o% %ill %or e/8ank/ents.
Yo" /a "se t-at lo!ation or /a !-oose at o"r #is!retion so/e ot-er so"r!e %or t-e
ne!essar %ill /aterial. 4s not-in0 -as !-an0e# &it- respe!t to %ill sin!e t-e ti/e o% ten#erD &e
#o not a0ree t-at its s"ppl is a##itional &ork or variation.
.-e S"perinten#ent /aintaine# t-at i/portin0 %ill &as not a variationD 8"t
nevert-eless re<"ire# t-e %ill to 8e i/porte#. .-e S"perinten#ent #e!line# to iss"e
an #ire!tion to i/ple/ent a variation or to val"e t-e !osts o% i/portin0 %ill. He
#e!line# to take t-e steps !onte/plate# 8 !la"se 40 o% t-e General 1on#itions :t-at
isD /akin0 an or#er an# val"in0 t-e &ork;.
.-e 1ontra!tor i/porte# %ill p"rs"ant to a s"8!ontra!t it entere# into. $t !lai/e# O8
per !"8i! /etre %or t-e %ill so i/porte#. .-e S"perinten#entD an# s"8se<"entl t-e
7rin!ipalD reAe!te# t-e !lai/. .-e pro!e#"res !ontaine# in !la"se 45 %or t-e
settle/ent o% #isp"tes &ere invoke#. 1la"se 45 re<"ire# t-e 1ontra!tor to pro!ee#
&it- t-e &ork not&it-stan#in0 t-e existin0 #isp"te as to &-et-er t-e &ork &as a
variation or not.
.-e 1o"rt -el#E
1. .-e re<"ire/ent to "se i/porte# %ill !onstit"te# a variation.
Spe!i%i!ation !la"se 3.&'>e? made it clear t-at embankment fill was to
come from cuttin"s wit-in t-e work or from borrow or imported fill w-en

48

eit-er borrow or imported fill was aut-orised b% t-e Superintendent.
.-ere &as a s-orta0e o% /aterial. Material -a# to !o/e %ro/ eit-er 8orro& or
%ro/ i/porte# %ill. .-e S"perinten#ent #e!line# to per/it 8orro&e# %ill.
.-ere%oreD %ill -a# to 8e i/porte#.
4lt-o"0- t-e S!-e#"le o% 4/o"nts /a#e provision %or t-e pricin" of borrow
to fillD it /a#e no provision %or i/porte# %ill. Spe!i%i!ation clause 1.4 spe!i%ie#
a lo!ation &-ere i/porte# %illD i% it &as to 8e Ca"t-orise# 8 t-e S"perinten#entC
&it-in !la"se 3.02:e;D /i0-t 8e o8taine#. Ho&everD it #i# not state &-et-er t-e
i/portation o% s"!- %ill %ro/ t-at or an ot-er so"r!e &as &it-in t-e !ontra!t
s"/.
.-e S!-e#"le o% 4/o"nts totallin0 t-e l"/p s"/ !ontra!t pri!e /a#e it !lear
t-at t-e !ontra!t &as on t-e 8asis t-at 6D300 !"8i! /etres &as to !o/e %ro/
Ccut to fillC an# 24D500 !"8i! /etres to !o/e %ro/ Cborrow to fillC. $% t-e S64
wanted imported fill %or 0eneral e/8ank/ent !onstr"!tion to 8e part o% t-e
l"/p s"/ pri!eD t-e S!-e#"le o% 4/o"nts s-o"l# -ave !ontaine# provisions
in#i!atin0 t-e <"antit allo&e# an# t-e "nit pri!e per !"8i! /etre. 4!!or#in0lD
i/porte# %ill %or 0eneral e/8ank/ent !onstr"!tion &as not in!l"#e# in t-e
l"/p s"/ pri!e. .-e re<"ire/ent to i/port %ill &as t-"s a re<"ire/ent to
exe!"te a##itional &ork &it-in t-e /eanin0 o% !la"se 40.1:8;. .-e proper
<"anti%i!ation o% t-at variation &as t-e reasona8le a##itional !ost o% i/portin0
%ill a8ove t-e !ost allo&e# %or 8orro&e# %ill.
2. .-e letter o% 4 )ove/8er 1+86 8 t-e S64 &as in s"8stan!e a #ire!tion to "se
i/porte# %ill.
3. *ven ass"/in0 t-at a #ire!tion -a# not 8een iss"e# 8 t-e S"perinten#entD
t-e 1ontra!tor !an still !lai/ a variation %or &ork per%or/e# i% t-e &ork
per%or/e# &as in tr"t- a variation an# t-e S"perinten#ent s-o"l# -ave /a#e
an or#er "n#er !la"se 40. .-e %ollo&in0 state/ent o% =or# S-a& in Brodie v
Corporation of Cardiff
10+
&as relevantE
.-ere are 3 !ases to 8e !onsi#ere#. .-e first !ase is t-at o% &ork a#/itte#l &it-in
t-e !ontra!t. Wit- re0ar# to t-at it is o% !o"rse !onsi#ere# t-at no or#er in &ritin0 8
t-e *n0ineer &as re<"ire#. .-e second !ase is t-at o% &ork a#/itte#l o"tsi#e t-e
spe!i%ie# !ontra!t &orkD an# !onsistin0 o% alterationsD a##itions or #eviations. Wit-
re0ar# to t-ese it is !onsi#ere# t-at t-e 1ontra!tor is not lia8le "nless an or#er 8 t-e
*n0ineer -a# 8een 0iven in &ritin0. .-e t-ird !ase is t-at o% &ork &it- re0ar# to &-i!-
t-ere is no a#/issionD 8"t on t-e !ontrar t-e parties are at iss"e "pon t-e <"estion
&-et-er t-e &ork re<"ire# 8 t-e *n0ineer is &it-in t-e !ontra!t or is an extra. .-e
%"n#a/ental #i%%eren!e involves &-et-er or not a &ritten or#er is re<"ire#.
$% t-e %a!ts o% t-e !ase %ell &it-in t-e t-ir# o% t-e a8ove !ate0oriesD an# t-e &ork
re<"ire# to 8e #one 8 t-e S"perinten#ent &as in tr"t- a variationD t-en t-e
1ontra!tor /a !lai/ a variation not&it-stan#in0 t-at t-e S"perinten#ent -a# not :8"t
s-o"l# -ave; /a#e an or#er nor val"e# t-e &ork as !onte/plate# 8 !la"se 40. .-e
1ontra!tor &as not o8li0e# to s"e onl %or 8rea!- o% !ontra!t %or t-e %ail"re o% t-e
S"perinten#ent to iss"e a #ire!tion %or t-e per%or/an!e o% t-e &ork &-en &ork &as
per%or/e# 8 t-e 1ontra!tor as a variation in t-e a8sen!e o% a !ontra!t"al #ire!tion.
'.'.3 /ssentin" to a 2ontactor(s proposal
$n (imple3 Concrete &iles Ltd v .!e Mayor, 'lderman and Councillors of t!e
Metropolitan Boroug! of (t &ancreas
110
t-e !ontra!t re<"ire# t-e 1ontra!tor to
provi#e rein%or!e# !on!rete piles to s"pport a nine stor 8lo!k o% %lats. 4 test pile

10+
J1+1+K 41 332.
110
:1+58; 14 '=6 80.

4+


%aile# an# it appeare# t-at t-e piles &o"l# not 8e a8le to s"pport t-e re<"ire# loa#s.
.-e 1ontra!tor propose# to t-e 4r!-ite!t t-at 8ore# piles at an extra !osts o%
approxi/atel S3D000 s-o"l# 8e installe#. .-e 1ontra!tor aske# t-e 4r!-ite!t %or -is
Cinstr"!tions an# vie&s as to t-e extra !osts &-i!- &ill 8e involve#C. .-e 4r!-ite!t
replie# in a letter statin0 t-at t-e 7rin!ipal C &as prepare# to a!!ept o"r proposal t-at
piles s"pportin0 'lo!k 4 s-o"l# 8e o% t-e sa/e 8ore# tpeIC
.-e 1ontra!tor !lai/e# t-at t-e letter &as an instr"!tion %or a variation to t-e &orks.
.-e 7rin!ipal !lai/e# t-at t-e letter &as no /ore t-an a !on!ession 8 t-e 4r!-ite!t
ena8lin0 t-e !ontra!t to pre%or/ its o8li0ations "n#er t-e !ontra!t in a /anner
#i%%erent %or/ t-at spe!i%ie# an# as s"!-D !reate# no lia8ilit on t-e 7rin!ipal?s part.
.-e 1o"rt -el# t-at t-e letter #i# /ore t-an /erel assent to t-e 1ontra!tor?s
proposal an# t-at t-e letter &as an instr"!tion involvin0 a variation in t-e #esi0n or
<"alit o% t-e &orks an# &as one &-i!- t-e 4r!-ite!t &as e/po&ere# to /ake "n#er
t-e !ontra!t.
'.'.4 64tra work outside t-e contract 3 un<ust enric-ment and frustration
4 1ontra!tor &-o !arries o"t extra &ork :or ra#i!all #i%%erent &ork; /a 8e a8le to
prove %a!ts s-o&in0 a separate i/plie# pro/iseD in#epen#ent o% t-e variations !la"seD
to pa %or t-e extra &ork 8ase# "pon t-e prin!iple o% "nA"st enri!-/ent or %r"stration
"n#er &-i!- t-e 1ontra!tor /a !lai/ on t-e 8asis o% restit"tion or <"ant"/ /er"it.
$n Liebe v Molloy,
111
Mollo en0a0e# =ie8e to ere!t a t-eatre an# -otel in 7ert-. .-e
!ontra!t provi#e# t-at no &orks 8eon# t-ose in!l"#e# in t-e !ontra!tD s-o"l# 8e
allo&e# or pai# %or &it-o"t an or#er in &ritin0 %ro/ t-e 7rin!ipal or 4r!-ite!t. .-e
spe!i%i!ation also provi#e# t-at an extra &orks or#ere# 8 t-e 4r!-ite!t or t-e
7rin!ipal &o"l# not 8e pai# %or "nless an or#er in &ritin0D statin0 t-e nat"re o% t-e
&orks an# t-e a/o"nt %ixe#D &as si0ne# 8 t-e 4r!-ite!t an# en#orse# 8 t-e
7rin!ipal. 4 #isp"te &as re%erre# to an "/pire &-o %o"n# t-at t-e &ork &as extraD
t-at t-ere &ere no or#ers in &ritin0 si0ne# 8 8ot- 4r!-ite!t an# 7rin!ipalD t-at t-ere
&ere or#ers in &ritin0 iss"e# 8 t-e 4r!-ite!t alone %or so/e o% t-e &orkD an# ver8al
or#ers %or t-e restD 8"t t-at t-e 7rin!ipal -a# kno&le#0e o% t-ese extras in%erre# %ro/
t-e %a!t t-at -e &as !onstantl at t-e &orks an# takin0 an a!tive interest in it.
Gri%%it- 1G #elivere# t-e A"#0/ent o% t-e Hi0- 1o"rtD an# s"!!in!tl state# t-e la& as
%ollo&sE
.-ere &as a &ritten !ontra!t 8et&een t-e parties an# t-ese ite/s !annot 8e 8ro"0-t &it-in its
ter/s in %a!e o% t-e express stip"lation t-at ?no extra s-all 8e pai# %or "nless or#ere# 8 an
or#er in &ritin0...? 8"t t-at stip"lation #oes not ex!l"#e alto0et-er t-e i/plie# #o!trine o% la&
t-atD &-en one /an #oes &ork %or anot-er at -is re<"estD an i/plie# o8li0ation arises to pa t-e
%air val"e o% it. .-e <"estion t-ere%ore is &-et-erD not&it-stan#in0 t-e a8sen!e o% &ritten
or#ersD t-e 1ontra!tor is entitle# to re!over t-ese s"/sD or in ot-er &or#sD &-et-er "n#er t-e
!ir!"/stan!es o% t-e !ase an i/plie# !ontra!t to pa %or t-e/ is to 8e in%erre#...
)o&D t-e onl %a!t %o"n# is t-at t-e e/ploer -a# s"!- kno&le#0e as to t-ese &orks as /a 8e
%airl in%erre# %ro/ t-e %a!t t-at -e &as !onstantl on t-e &orkD an# takin0 an a!tive interest
t-erein. '"t a %"rt-er in%eren!e /"st 8e #ra&n 8e%ore a lia8ilit to pa arisesD na/elD t-at t-ere
&as an i/plie# !ontra!t to pa. $t /i0-t 8e in%erre#D on t-e one -an#D t-atD -avin0 re0ar# to t-e
nat"re o% t-e &orksD t-e %a!t o% t-e 3&ner?s presen!eD an# t-e nat"re o% t-e interest -e tookD -e
kne& t-at t-e &ere o"tsi#e t-e !ontra!tD an# kne& t-at t-e 1ontra!tor expe!te# to 8e pai# %or
t-e/ as extras. 3n t-e ot-er -an#D it /i0-t 8e in%erre# as to all or so/e o% t-e/ t-at -e #i# not
kno& t-at t-e &ere extrasD or #i# not kno& or 8elieve t-at t-e 1ontra!tor expe!te# to 8e pai#
%or t-e/.

111
:1+06; 4 1=6 342.

50

4n i/plie# !ontra!t /a 8e prove# in vario"s &as. W-en a /an #oes &ork %or anot-er &it-o"t
an express !ontra!t relatin0 to t-e /atterD an i/plie# !ontra!t arises to pa %or it at its %air
val"e. S"!- an i/pli!ation o% !o"rse arises %ro/ an express re<"est to #o &ork /a#e "n#er
s"!- !ir!"/stan!es as to ex!l"#e t-e i#ea t-at t-e &ork &as !overe# 8 a &ritten !ontra!t. So
it &o"l# arise %ro/ t-e 3&ner stan#in0 8 an# seein0 t-e &ork #one 8 t-e ot-er partD kno&in0
t-at t-e ot-er partD in t-is !ase t-e 1ontra!torD &as #oin0 t-e &ork in t-e 8elie% t-at -e &o"l#
8e pai# %or it as extra &ork.
$% t-e "/pire &as o% opinion t-at an o% t-is &ork &as #one "n#er s"!- !ir!"/stan!es t-at t-e
3&ner kne& t-at t-e 1ontra!tor &as #oin0 t-e &ork in t-e 8elie% t-at -e &o"l# 8e pai# %or it as
extra &orkD t-en t-e "/pire /i0-tD an# pro8a8l &o"l#D in%er t-at t-ere &as an i/plie# pro/ise
to pa %or it. .-at is one instan!e. 40ainD t-e 4r!-ite!t /i0-t -ave 8een expressl a"t-orise# 8
t-e 3&ner to or#er extra &ork. @n#er s"!- !ir!"/stan!es it &o"l# not 8e "n#erstoo# 8 eit-er
part t-at it &as in!l"#e# in t-e l"/p s"/ spe!i%ie# in t-e !ontra!t.
.-e "/pire %o"n# t-at t-e exe!"tion o% t-e extra &orks &as insiste# "pon 8 MolloD
&-o asserte# t-at t-ose &orks &ere in!l"#e# in t-e !ontra!t pri!e. Ho&everD Mollo
&as tol# at t-e ti/e 8 =ie8e t-at t-ose &orks &ere extras an# &o"l# 8e !-ar0e# as
s"!-. .-e 7riv 1o"n!il en#orse# t-e "/pire?s %in#in0 t-at Mollo?s insisten!e on t-e
&orks 8ein0 #one 0ave rise to t-e in%eren!e t-at t-ere &as a pro/ise to pa %or t-e
&orks eit-er as in!l"#e# in t-e !ontra!t pri!eD or i% extraD t-en 8 extra pa/ent.
Codelfa Construction &ty Ltd v (tate "ail 'ut!ority of 0(W
112
!on!erne# a !ontra!t
8et&een t-e 1o//issioner %or 6ail&as an# 1o#el%a 1onstr"!tion arose in t-e
%ollo&in0 !ontext an# -a# t-e %ollo&in0 %eat"res set o"t in t-e reasons o% 'rennan
GE
113

:a; .-e !ontra!t pri!e &as paa8le %or all &ork in!l"#e# in t-e s!-e#"le o% rates
re0ar#less o% its #i%%i!"lt.
:8; .-e 1ontra!tor &as re<"ire# to provi#e at -is o&n !ost evert-in0 ne!essar
%or proper !o/pletion o% t-e !ontra!t.
:!; .-e 1ontra!tor &as #ee/e# to -ave in%or/e# -i/sel% %"ll o% t-e !on#itions
a%%e!tin0 t-e !arrin0 o"t o% t-e &orks.
:#; Bail"re 8 t-e 1ontra!tor to %"ll in%or/ -i/sel% o% all s"!- !on#itions #i# not
relieve t-e 1ontra!tor o% t-e responsi8ilit C%or satis%a!toril per%or/in0 t-e
&orks as re<"ire# re0ar#less o% t-eir #i%%i!"ltC.
:e; .-e &ork &as o% an in-erentl nois nat"re !arrie# o"t in !lose proxi/it to
resi#ential areas.
:%; .-e !ontra!t /a#e spe!i%i! provision %or noiseD poll"tion an# n"isan!e.
:0; .-e parties entere# into t-e !ontra!t on t-e "n#erstan#in0 an# 8asis t-at t-e
&orks &o"l# 8e !arrie# o"t %or 3 !ontin"o"s s-i%tsD 6 #as a &eekD an# &it-o"t
restri!tion on S"n#as. .-is &as not a !ontra!t"al re<"ire/entD 8"t t-e
!onstr"!tion perio# o% 130 &eeks re%le!te# 1o#el%a?s ten#er !onstr"!tion
pro0ra/ o% !ontin"o"s 6 #a per &eek &orkin0. .-is pro0ra/ &as a!!epte#
8 t-e site *n0ineer "n#er t-e ter/s o% t-e !ontra!t.
:-; $t &as t-e vie& o% t-e S64D a!!epte# 8 1o#el%aD t-at no inA"n!tion !o"l# 8e
0rante# in relation to noise or ot-er n"isan!e.
:i; .-e /et-o#s an# pro0ra/s a0ree# 8 t-e parties re<"ire# t-at &ork 8e
!ontin"o"s %or 6 #as per &eek.

112
:1+82; 14+ 1=6 332.
113
$8i# starin0 at pa0e 3+4.

51

:A; )eit-er part %oresa& t-e likeli-oo# or possi8ilit o% restri!tions 8ein0 i/pose#
on t-e -o"rs o% &ork.
:k; .-e inA"n!tions 0rante# a0ainst 1o#el%aE
:i; prevente# t-e 1ontra!tor &orkin0 !ontin"o"sl %or 6 #as per &eekF
:ii; !a"se# #ela to t-e &orks exposin0 t-e 1ontra!tor to li<"i#ate#
#a/a0esF an#
:iii; re<"ire# alterations to t-e pro0ra/ o% &ork at si0ni%i!ant a##e# !ost.
4pplin0 t-e %or/"laD set o"t 8 =or# 6a#!li%%e in Davis Contractors Ltd v Fare!am
6rban District Council
114
t-e 1o"rt !onsi#ere# &-et-er t-e !ir!"/stan!es in &-i!-
per%or/an!e &as re<"ire# ren#ere# it a t-in0 Cra#i!all #i%%erent t-an &-at &as
"n#ertakenC 8 t-e parties9 1o"l# it 8e sai# t-at t-e per%or/an!e &as Cnot t-at t-e
1ontra!tor pro/ise# to #oC9
.-e 1o"rt -el# t-at &-at &as re<"ire# o% t-e 1ontra!tor &as Cra#i!all #i%%erentC an#
t-ere%ore o"tsi#e t-e !ontra!t. .-e reasonin0 o% t-e 1o"rt &as as %ollo&sE
:a; .-ere are %a!tors pointin0 in 8ot- #ire!tions. 1learl t-e in!rease# #i%%i!"lt o%
per%or/an!eD t-e #ela an# in!rease# !osts o% /akin0 !-an0es to t-e
pro0ra/ o% &ork are not o% t-e/selves s"%%i!ient to %r"strate t-e !ontra!t.
:8; $n an eventD t-e parties -a# expressl provi#e# t-at t-e risks o% in!rease#
#i%%i!"lt :%ro/ a %ail"re to %"ll in%or/ -i/sel%;D reasona8le /eas"res to avoi#
noise an# n"isan!e an# in!rease# !osts #"e to t-e &ork provin0 /ore #i%%i!"lt
&ere &it- t-e 1ontra!tor.
:!; Ho&everD an# /ore i/portantlD t-at allo!ation o% risk &as a0ree# in t-e
!ontext o% t-e %ollo&in0 !onte/plate# !ir!"/stan!es an# eventsE
:i; t-at t-e per%or/an!e !onte/plate# an# re<"ire# 8 t-e !ontra!t
ne!essitate# !ontin"o"s 6 #a &orkin0F
:ii; t-at t-e !onte/plate# s!-e#"le o% &ork !o"l# not 8e a%%e!te# 8 t-e
0rant o% an inA"n!tionF an#
:iii; t-at t-e partiesD t-ere%oreD #i# not a##ress t-e !ontin0en! o%
restri!tions 8ein0 i/pose# on &orkin0 -o"rs.
:#; Mason G relie# on earlier !ases %or t-e proposition t-at a /istaken !o//on
ass"/ption at t-e ti/e o% !ontra!tin0 !an 8e!o/e a %r"stratin0 s"pervenin0
event &-en t-e ass"/ption is prove# %alseE
115

.-e inA"n!tion is an s"pervenin0 event t-o"0- it #oes not ste/ %ro/ an alteration in
t-e la&.
:e; Mason G -a# re0ar# to t-e C!ontra!t"al settin0C an# t-e %in#in0s o% t-e
ar8itrator to link t-e parties? pre-!ontra!t"al ne0otiations &it- t-e !ontra!t to
s-o& t-at t-ose ne0otiations re%le!te# t-e per%or/an!e !onte/plate# 8 t-e
!ontra!tE
116

.-e s"8/ission o% t-e propose# pro0ra//e o% &ork &it- t-e ten#erD its s"persession
8 t-e revise# pro0ra//e p"rs"ant to !l.S.6 o% t-e spe!i%i!ationsD to0et-er &it- t-e

114
J1+56K 41 6+6 at 222-+F J1+56K @LH= 3.
115
Codelfa Construction &ty Ltd v (tate "ail 'ut!ority of 0(W :1+82; 14+ 1=6 332D 35+.
116
$8i# at 361.

52

ver provisions o% !1.S.6 itsel% #ealin0 &it- t-e !onstr"!tion pro0ra//eD provi#e a link
8et&een t-e !ontra!t an# t-e ante!e#ent #is!"ssions so as to ena8le "sD s"8Ae!t to a
!onsi#eration o% spe!i%i! provisions in t-e spe!i%i!ationsD to sa t-at t-e !ontra!t
!onte/plate# t-at !o/pletion &o"l# 8e a!-ieve# &it-in t-e ti/e stip"late# 8 t-e
/et-o# o% &ork alrea# /entione#D it 8ein0 ass"/e# t-at it !o"l# not 8e #ist"r8e# 8
t-e 0rant o% an inA"n!tion.
:%; 4 !la"se allo&in0 %or extensions o% ti/e %or #elas Co&in0 to !a"ses 8eon#
t-e !ontrol or &it-o"t t-e %a"lt or ne0li0en!e o% t-e 1ontra!torC &as -el# not to
8e inten#e# to appl to t-e 0rant o% an inA"n!tion to restrain a n"isan!eF s"!-
#ela Cs!ar!el ans&ers t-is #es!ription
112
C. .-e parties -a# notD 8 in!l"#in0
t-is !la"seD !onte/plate# t-e s"pervenin0 event &-i!- -a# o!!"rre#.
:0; Spe!i%i! provision &as /a#e %or noiseD poll"tion an# n"isan!e an# it &as
!onte/plate# t-at t-ere /i0-t 8e C restri!tions on t-e &orkin0 -o"rs o% plant or
s"!- ot-er /eas"res as approve# 8 t-e *n0ineerC. .-e 1o"rt !onsi#ere#
&-et-er t-is &as an express !onte/plation 8 t-e parties o% t-e events &-i!-
in %a!t o!!"rre# as %ollo&sE
118

Do t-ese provisions s"pport t-e vie& t-at 1o#el%a &as "n#ertakin0 in an event to
per%or/ t-e !ontra!t &orkD even t-o"0- t-e /et-o# !onte/plate# 8 t-e parties /i0-t
prove to 8e "nla&%"l or i/possi8le 8 reason o% its a/o"ntin0 to a n"isan!e an# its
8ein0 restraine# 8 inA"n!tion. $ #o not t-ink t-at !l.S.8:2;1 -as s"!- a &i#e-ran0in0
e%%e!t. $t involves no s"8tra!tion %ro/ t-e lan0"a0e o% t-e provisions to sa t-at it is
<"ite !onsistent &it- t-e !onte/plate# /et-o# o% &ork 8ein0 an essential ele/ent o%
t-e !ontra!t. $n#ee#D t-ere &o"l# 8e no in!onsisten! 8et&een t-ese provisions an#
an expli!it provision %or ter/ination o% t-e !ontra!t in t-e event t-at t-e /et-o# o% &ork
&as restraine# 8 inA"n!tion. .-ere &as plent o% s!ope %or an exer!ise o% t-e
*n0ineer?s po&er "n#er t-e se!on# para0rap- so lon0 as it #i# not #ispla!e t-e
!ontin"ation o% t-at /et-o# o% &ork.
Mason G t-"s rea# #o&n t-e 0eneral &or#s o% t-e 1ontra!t to /ake t-e/ !onsistent
&it- t-e 8asis o% t-e !ontra!t 8ar0aine# %or 8 t-e partiesD t-at isD t-e !onte/plate#
/et-o# o% &ork.
.-is res"ltD &it- respe!tD is !onsistent &it- t-e a"t-orities. .-ere &as no ela8orate
in<"irD no re%eren!e &as /a#e to !o/para8le %a!t sit"ations in ot-er !asesD t-e
!ontra!t &as !onstr"e# &it- t-e ai# o% relevant extrinsi! evi#en!e an# a 0eneral
i/pression 0aine# o% &-at t-e #o!trine re<"iresE
11+

7er%or/an!e 8 /eans o% a t&o s-i%t operationD ne!essitate# 8 t-e 0rant o% t-e inA"n!tionsD
&as %"n#a/entall #i%%erent %ro/ t-at !onte/plate# 8 t-e !ontra!t.
G"sti!e 4i!kin a0ree# t-at t-e !ontra!t -a# 8een %r"strate# an# 0ave reasons si/ilar
to t-ose o% Mason G. Step-en G a0ree# &it- 8ot- o% t-e/ on t-e %r"stration iss"eD as
#i# Wilson G. .-e <"estion &as re/itte# to t-e 4r8itrator %or #e!ision.
$% t-e 1ontra!tor #oes !arr o"t &ork &-i!- is #eter/ine# to 8e &ork o"tsi#e t-e
!ontra!t %or &-atever reasonD s"!- &ork &ill 8e val"e# on a <"ant"/ /er"it 8asis.
Deane G in &avey * Matt!ews v &aul
120
in #es!ri8in0 -o& s"!- an a/o"nt is to 8e
#eter/ine# sai# s"!- !o/pensation /"st represent Cfair and Bust compensation for
t!e benefit w!ic! !as been acceptedC an# C ordinarily fair and Bust compensation for
t!e benefit or enric!ment accepted will correspond to t!e fair value of t!e benefit
provided +eg remuneration at a reasonable rate for wor actually done or t!e fair
maret value of materials supplied,C.

112
$8i# at 362.
118
$8i# at 362.
11+
$8i# at 363.
120
:1+82; 162 1=6 221.

53

'rne G in Brenner v First 'rtists$ Management &ty Ltd
121
also 0ave 0"i#an!e -o&
&ork o"tsi#e a !ontra!t s-o"l# 8e val"e# as %ollo&sE
:a; t-e %"n#a/ental ar#sti!k is &-at is a %air an# reasona8le re/"neration or
!o/pensation %or t-e 8ene%it a!!epte#F
122

:8; re0ar#s s-o"l# 8e to t-e pri!e pai# -a# t-e 8ene%its 8een !on%erre# "n#er a
nor/al !o//er!ial arran0e/entF
123

:!; t-e en<"ir is not pri/aril #ire!te# to t-e !ost to t-e plainti%% o% per%or/in0 t-e
&ork sin!e t-e la& is not !o/pensatin0 t-at part %or loss s"%%ere#I. t-e
reasona8le re/"neration %or &ork /"st -ave so/e re0ar# to t-e !ost o% its
per%or/an!eF
124

:#; &-ere t-e parties -ave a0ree# "pon a pri!e %or !ertain servi!es to 8e
per%or/e# an# t-ose servi!es -ave in %a!t 8een per%or/e#D 8"t %or so/e
reason t-eir a0ree/ent is ine%%e!tive or is no lon0er on %ootD t-e a0ree# pri!e
is evi#en!e o% t-e val"e t-at t-e parties t-e/selves p"t on t-e servi!es
per%or/e# an# /a 8e re!eive# as evi#en!e o% t-e appropriate re/"nerationD
8"t is not #eter/inative o% itF
125
an#
:e; in t-e !ase &-ere t-e servi!es are o% s"!- kin# t-at it is #i%%i!"lt or i/possi8le
to assess t-e n"/8er o% -o"rs involve# or to ite/ise t-e pre!ise servi!esD t-e
!o"rt is entitle# to /ake a 0lo8al assess/ent or to re#"!e or in!rease t-e
re/"neration &-i!- !an 8e prove# &it- so/e !ertaint in or#er to re%le!t t-e
%air an# reasona8le val"e.
126

'.8 Variations and 6stoppel
7arties to a !ontra!t nee# to 8e a&are o% t-e potential operation o% estoppel on t-e
ter/s o% t-e !ontra!t.
.-e /ost !o//onl !ite# !ase %or t-e ele/ents o% estoppel is Waltons (tores
+1nterstate, Ltd v Ma!er7
122
.-at !ase esta8lis-e# t-at t-e ele/ents o% estoppel are as
%ollo&sE
:a; a part in#"!e# :inducin" part%; t-e ot-er part to a#opt an ass"/ption or
expe!tationF
:8; t-e ot-er part a!te# or a8staine# %or a!tin0 in relian!e on t-e ass"/ption or
expe!tationF
:!; t-e in#"!in0 part kne& or inten#e# t-e part to #o soF an#
:#; t-e ot-er part?s a!tion or ina!tion &ill o!!asion #etri/ent i% t-e ass"/ption or
expe!tation is not %"l%ille#.
*stoppel &it- re0ar#s to variations is &ell ill"strate# 8 t-e %ollo&in0 !ase.
6pdate Constructions &ty Ltd v "ozelle C!ild Care
128
!on!erne# a 8"il#in0 !ontra!t
8et&een @p#ate an# 6oQelle "n#er &-i!- @p#ate pro/ise# to exe!"te an# !o/plete
t-e Work s-o&n in t-e 1ontra!t Dra&in0s.

121
J1++3K 2 56 221.
122
$8i# at 262.
123
$8i# at 262.
124
$8i# at 262.
125
$8i# at 263.
126
$8i# at 263.
122
:1+88; 164 1=6 382D 428-+.

54

1la"se 6 provi#e#E
12+

:a; .-e '"il#er s-all !o/pl &it- an# 0ive all noti!es re<"ire# 8 an 4!t o% 7arlia/ent or
an re0"lation or 8-la& o% an lo!al a"t-orit or o% an p"8li! servi!e !o/pan or
a"t-orit &-i!- -as an A"ris#i!tion &it- re0ar# to t-e Works or &it- &-ose sste/s t-e
sa/e are or &ill 8e !onne!te#D an# -e s-all pa an# in#e/ni% t-e 7roprietor a0ainst
an %ees or !-ar0es le0all #e/an#a8le "n#er t-e 4!t o% 7arlia/entD re0"lation or 8-
la& in respe!t o% t-e Works provi#e# t-at t-e '"il#er s-all not 8e responsi8le %or an
le0all #e/an#a8le %ees or !-ar0es t-at are i/pose# a%ter t-e #ate o% t-is 1ontra!t.
:8; .-e '"il#erD 8e%ore /akin0 an variation %ro/ t-e 1ontra!t Dra&in0s or Spe!i%i!ation
ne!essar %or !o/plian!e &it- s"8-!la"se 6:a; s-all 0ive to t-e 7roprietor &ritten
noti!e spe!i%in0 an# 0ivin0 t-e reason %or t-e variation an# applin0 %or instr"!tions in
re%eren!e t-ereto.
@p#ate per%or/e# extra &orks &it-o"t 0ivin0 &ritten noti!e an# !lai/e#
!o/pensation.
.-e 4r8itrator %o"n# an a0ent -a# a"t-orit to var t-e !ontra!t on 8e-al% o% 6oQelle.
Bro/ t-e evi#en!e 0ivenD !onversation took pla!e 8et&een @p#ate an# t-e 40ent
&-ere8 t-e latter represente# to @p#ate t-at @p#ate &o"l# 8e pai# %or t-e extra
&orks.
7riestle G4 state#E
$t see/s t-at at t-e sta0e &-en t-ese !onversations took pla!e it &as still open to @p#ate to
!o/pl %or/all &it- !l 6 o% t-e !on#itions o% !ontra!t. .-e a!<"ies!en!e o% 6oQelle?s a0ent in
@p#ate?s proposalD &it-o"t t-e re<"ire/ent o% &ritten noti!e 8ein0 !o/plie# &it-D le# @p#ate to
!ontin"e &it- t-e &ork &it-o"t 0ivin0 &ritten noti!e. $n ter/s o% its !ontra!t"al o8li0ationsD
@p#ate?s a!tin0 in t-is &a &as a #etri/ent to itsel% #ire!tl in#"!e# 8 t-e !on#"!t o% 6oQelle?s
a0ent. 6oQelle t-"s -avin0 le# @p#ate to a!t to its #etri/ent 8 representin0 :even i% in#ire!tl;
t-at t-e re<"ire/ent o% &ritin0 &as not 8ein0 insiste# onD s-o"l# not 8 t-e r"les o% estoppelD
later 8e allo&e# to rel "pon t-e re<"ire/ent %or &ritten noti!e as an ans&er to @p#ate?s !lai/
"n#er t-e !ontra!t....
4n estoppel arose in t-e present !ase &-en t-e !on#"!t o% 6oQelle?s a0ent le# @p#ateE
:i; to s"ppose t-at t-e re<"ire/ent o% &ritin0 "n#er !l 6:8; &o"l# not 8e en%or!e#D an#
:ii; to a!t to its #etri/ent 8 8ot- not 0ivin0 t-e &ritten noti!e &-en it !o"l# still -ave #one
soD an# #oin0 t-e &orkF t-e estoppel 8ein0 t-at 6oQelle !o"l# not a%ter t-ose events
rel on t-e &ritin0 re<"ire/ent in !l 6:8;
His Hono"r !ontin"e#E
130

3ne point &-i!- see/s to /e to 8e 8asi! to t-e #e!ision in =ie8e is t-at i% t-e &ork !lai/e# %or
-a# 8een &ork re<"ire# 8 t-e 1ontra!t to 8e #oneD t-en t-e '"il#er !o"l# not re!over %or it
8e!a"se -e -a# not !o/plie# &it- t-e !ontra!t"al re<"ire/ents. $%D -o&everD t-e &ork &as
&ork &-i!- t-e '"il#er &as not re<"ire# to #o 8 t-e !ontra!t : Co"tsi#e t-e !ontra!tC in t-e
&or#s o% t-e Hi0- 1o"rt ; t-enD i% !ertain %"rt-er %a!ts &ere %o"n#D t-e '"il#er !o"l# re!over. $t
/a 8e t-at t-e 8asis o% s"!- re!over &o"l# t-ese #as 8e re%erre# to in ter/s o% restit"tion
rat-er t-an i/plie# !ontra!t.
8. *ormal re+uirements of variation clauses
8.1 1-at are t-e%)
4 variation !la"se in a !onstr"!tion !ontra!t "s"all re<"ires t-at t-e #ire!tion to !arr
o"t a variation /"st 8e in &ritin0.

128
:1++0; 20 )SW=6 251.
12+
$8i# at 255.
130
$8i# at 14.

55

/S 4&&&
1la"se 36.1 provi#es t-at t-e 1ontra!tor s-all not var W@1 ex!ept as #ire!te# in
&ritin0.
1la"se 20 provi#es t-at ex!ept &-ere t-e 1ontra!t ot-er&ise provi#esD t-e
S"perinten#ent /a 0ive a #ire!tion orall 8"t s-all as soon as pra!ti!a8le !on%ir/ it
in &ritin0.
4!!or#in0lD 0iven !la"se 36.1D a variation #ire!tion /"st 8e 0iven in &ritin0.
/S 2124
1la"se 40.1 provi#esD a/on0 ot-er t-in0sD t-atE
.-e 1ontra!tor s-all not var t-e &ork "n#er t-e 1ontra!t ex!ept as #ire!te# 8 t-e
S"perinten#ent "n#er 1la"se 30.3D 30.4 or 40.1 or approve# in &ritin0 8 t-e S"perinten#ent
"n#er 1la"se 40.1.
1la"se 23 provi#esD a/on0 ot-er t-in0sE
*x!ept &-ere t-e 1ontra!t ot-er&ise provi#esD a #ire!tion /a 8e 0iven orall 8"t t-e
S"perinten#ent s-all as soon as pra!ti!a8le !on%ir/ it in &ritin0.
$% t-e 1ontra!tor in &ritin0 re<"ests t-e S"perinten#ent to !on%ir/ an oral #ire!tionD t-e
1ontra!tor s-all not 8e 8o"n# to !o/pl &it- t-e #ire!tion "ntil t-e S"perinten#ent !on%ir/s it in
&ritin0.
0!12
1la"se 40.1 provi#esD a/on0 ot-er t-in0sE
)o variation s-all 8e /a#e 8 t-e 1ontra!tor &it-o"t an or#er 8 t-e S"perinten#ent.
1la"se 23 provi#esD a/on0 ot-er t-in0sE
4n #ire!tion &-i!- /a 8e or is 0iven to t-e 1ontra!tor 8 t-e S"perinten#ent p"rs"ant to t-e
provisions o% t-e 1ontra!t /aD "nless t-e 1ontra!t expressl provi#es ot-er&iseD 8e 0iven
eit-er orall or in &ritin0. W-en an s"!- #ire!tion is in t-e %irst instan!e 0iven orall t-e
S"perinten#ent s-all as soon as pra!ti!a8le a%ter it is so 0iven !on%ir/ it in &ritin0 a##resse# to
an# iss"e# or 0iven to or serve# "pon t-e 1ontra!tor.
Given t-at "n#er 4S 2124 an# )7W1D a variation #ire!tion is not re<"ire# to 8e in
&ritin0D t-e 7rin!ipal /a 8e expose# to /ore !lai/s in respe!t o% variationsD
in!l"#in0 %or exa/pleD #isp"tes re0ar#in0 i% a variation &as or &as not #ire!te# an#
t-e s!ope o% an parti!"lar variation.
!2 1
1la"se 11.1 provi#esE
4t an ti/e prior to t-e Date o% 1o/pletion o% t-e Works or a Sta0eID t-e 1ontra!t
4#/inistrator /a iss"e a #o!"/ent title# C5ariation 7ri!e 6e<"estC to t-e 1ontra!tor &-i!- &ill
set o"t #etails o% a propose# variationI
B"rt-erD "n#er !la"se 11.2 t-e 1ontra!t 4#/inistrator /a #ire!t t-e 1ontra!tor to
!arr o"t a 5ariation :&-et-er or not a 5ariation 7ri!e 6e<"est -as 8een iss"e# "n#er
!la"se 11.1; 8 a &ritten #o!"/ent title# C5ariation 3r#erC.
71 1 t-ere%ore /akes it expressl !lear t-at a variation !an onl 8e #ire!te# 8
&ritin0 in a pres!ri8e# /anner.

56

.-is is %"rt-er en-an!e# 8 !la"se 16.1 &-i!- provi#es t-at i% t-e 1ontra!tor
!onsi#ers a #ire!tion to !onstit"te a variation :ot-er t-an a ?5ariation 3r#er? "n#er
!la"se 11.2; it /"st 0ive noti!e in &ritin0 to t-at e%%e!t.
8.2 *ailure to compl% wit- procedural obli"ations
4 !la"se /aD on its proper !onstr"!tionD /ake t-e o8tainin0 o% a &ritten #ire!tion to
per%or/ &ork a !on#ition pre!e#ent to t-e 1ontra!tor?s ri0-t to pa/ent "n#er t-e
!la"se. $% soD as a 0eneral r"le t-e 1ontra!tor &ill not 8e entitle# to re!over pa/ent
"n#er t-e variation !la"se &it-o"t a &ritten #ire!tion o% t-e S"perinten#ent.
131

4n earl !ase :o%ten relie# "pon as a"t-orit %or t-e proposition t-at t-ere !an 8e no
re!over in t-e a8sen!e o% &ritin0; is .!e .!arsis (ulp!ur and Copper Company v
Mc%lroy * (ons
132
:Tharsis;. 1la"ses in t-e !ontra!t provi#e#E
:a; .-is Jvarin0 t-e &ork "n#er t-e !ontra!tK s-all onl 8e #one "n#er a &ritten
or#er %ro/ t-e !o/pan?s *n0ineer IIF an#
:8; .-e 1ontra!tors s-all not at t-eir o&n -an# or &it-o"t a &ritten or#er %ro/ t-e
!o/pan?s *n0ineer 8e entitle# to /ake an s"!- alterations or a##itionsI.
=or# 'la!k8"rn sai#E
it is !o//on eno"0- to -ave provisionsD as are -ereD /ore or less strin0entD sain0 t-at no
extra &ork s-all 8e pai# %or "nless it is or#ere# in &ritin0 8 t-e *n0ineerF an# i% s"!- !on#itions
are properl /a#eD an# t-ere is not-in0 %ra"#"lent or ini<"ito"s in t-e &a t-e are !arrie# o"tD
t-ose !on#itions &o"l# 8e <"ite s"%%i!ient an# e%%e!t"al.
.-e 1o"rt in .!arsis !a/e to t-e a8ove !on!l"sion not&it-stan#in0 t-at t-ere &as a
#is!"ssion 8et&een t-e 3&ner an# t-e *n0ineer an# t-e 1ontra!tor to t-e %ollo&in0
e%%e!tE
Yo" -ave entere# into an a0ree/ent &it- t-e !o/pan to #o t-is &ork an# i% o" !annot #o it in
t-e /anner spe!i%ie#D o" /"st #o it in t-e 8est &a o" !an I $ #o not &is- to -ave t-e
0ir#ers t-i!kerF $ &o"l# rat-er notF 8"t i% o" tell /e t-at it &ill save o" a 0reat #eal o% /one
an# expenseD $ #o not &is- to resist it.
.!e District "oad Board and "atepayers of t!e "oad District of Broadmeadows v
Mitic!ell
133
&as anot-er earl !ase -ear# in t-e S"pre/e 1o"rt o% 5i!toria. .-e
variation !la"se provi#e# t-at Tno s"!- alterations or #eviations &ill 8e allo&e# or
pai# %orD "nless previo"sl a"t-orise# in &ritin0 8 t-e s"rveorU.
Sta&ell 1G -el#E
134

.-ere /"st 8e an or#er in &ritin0 an# a !erti%i!ate o% !o/pletion 8e%ore an pa/ent.
.-e !ontra!t /a#e !lear t-at in t-e a8sen!e o% &ritin0 "n#er t-e -an# o% t-e s"rveorD
t-ere &o"l# 8e no pa/ent.
$n 'ttorney9/eneral v McLeod,
135
t-e -ea#note provi#es t-at T@wA!en in a building
contract orders in writing constitute a condition precedent to t!e rig!t of payment for
e3tras, suc! a condition cannot be got overU. .-e !ase !on!erne# a #isp"te as to t-e
entitle/ent o% t-e '"il#er to 8e pai# %or variations in t-e a8sen!e o% &ritin0. 1on#ition

131
See .!arsis (ulp!ur and Copper Co v M$%lroy * (ons J1828K 3 4.1. 1040F "ussell v (a da Bandeira :1862; 13 1.'. :).S.; 14+F District "oad
Board and "ate &ayers of t!e District of Broadmeadow v Mitc!ell :1862; 4 WW , a?' :=; 101F 'ttorney9/eneral v McLeod :18+3; 14 =6 :)SW;
246 at 251F Forman * Co &ty Ltd v .!e (!ip Liddesdale J1++0K 4.1. 1+0F 0ewton v Warden etc of Municipality of Deloraine :1+0+; 5 .as =6 22F
(myt! v " J1884K 1 )P=6 :14; 80 F S C .averner and Co Ltd v7 /lamorgan County Council :1+41; 164 =. 352F (!aw v Baer :1885; 1+ S4=6 6+.
132
:1828; 3 4pp 1as 1040.
133
:1862; 4 W,W , a?':=; 101.
134
$8i# at 104.
135
:18+3; 14 =6 :)SW; 246.

52

8 o% t-e !ontra!t provi#e# t-at Tno deviations from t!e drawings of +sic, t!e
specifications will be sanctioned or permitted unless an order in writing signed by t!e
Colonial 'rc!itect aut!orising suc! deviations, be first obtainedU. .-e 1o"rt -el#E
136

.-e la& is too !learl esta8lis-e# 8 n"/ero"s #e!isions to per/it o% an #o"8tD t-at &-ere
orders in writin" constitute a condition precedent to t-e ri"-t of pa%ment for e4trasD s"!-
a !on#ition !annot 8e 0ot over. Je/p-asis a##e#K
Forman * Co v .!e (!ip Liddesdale
132
&as appeale# to t-e 7riv 1o"n!il %ro/ t-e
S"pre/e 1o"rt o% 5i!toria. 1la"se 8 provi#e#E
.-e 1ontra!tor s-all not /ake an alteration or #eviation %ro/ t-e spe!i%i!ation a0ree# "ponD
nor s-all !e be entitled to mae any c!arge or claim for e3tras or %or ant-in0 &-atever 8eon#
t-e l"/p s"/ a0ree# "ponD "nless t-e -e o8tain t-e &ritten san!tion o% t-e !aptain or -is
a0ents at t-e ti/e o% /akin0 s"!- a##itions or alterations &-i!- s-all 8e at a pri!e a0ree# "pon.
W-ilst t-e /ain iss"e in t-e !ase &as one !on!ernin0 t-e a"t-orit o% an a0entD t-e
1o"rt %o"n# t-at !la"se 8 prevente# t-e 1ontra!tor %ro/ /akin0 an !lai/ %or extras
"nless it -a# a &ritten or#er as re<"ire# 8 t-at !la"se.
4 n"/8er o% /ore re!ent !ases !ontin"e to s"pport t-e prin!iple t-at t-e pro!e#"res
:in!l"#in0 t-at t-e #ire!tion /"st 8e in &ritin0; in a !ontra!t /"st 8e %ollo&e#
re0ar#in0 !lai/s %or variations.
Wormald %ngineering &ty Ltd v "esources Conservation Co 1nternational,
138
alt-o"0-
not #ire!tl !on!ernin0 variations :as t-e 1ontra!tor &as pai# %or its variation &ork;D
/a 8e vie&e# as a"t-orit %or t-e re<"ire/ent o% &ritin0 as a !on#ition pre!e#ent to
pa/ent. .-e 1ontra!tor !lai/e# a##itional !osts in asso!iate# &it- t-e variation
over an# a8ove !osts %or &-i!- it -a# alrea# 8een pai#. 1la"se 23 o% t-e !ontra!t
re<"ire# t-e 1ontra!tor to 0ive &ritten noti!e to t-e S"perinten#ent a%ter 8e!o/in0
a&are o% t-e sit"ation 0ivin0 rise to extra expense.
6o0ers G -el# t-at t-e noti!e &as part o% a !are%"ll re0"late# pro!ess &-i!- ena8le#
t-e S"perinten#ent to 8e!o/e a&are o% s"!- !osts t-"s 0ivin0 t-e S"perinten#ent an
opport"nit to re!onsi#er t-e #ire!tion to !arr o"t t-e variation. .-e 1ontra!tor -a#
0iven no noti!e o% t-e extra !osts an# &as -el# not to 8e entitle# to s"!- !osts.
$n 8itsons (!eet Metal Ltd v Matt!ew #all Mec!anical and %lectrical %ngineers Ltd,
13+

t-e 1o"rt &as aske# to #eter/ine &-et-er an or#er in &ritin0 &as a !on#ition
pre!e#ent to a !lai/ %or extra pa/ent in respe!t o% &ork #one in exe!"tin0 an
alle0e# variation. 1la"se 20:2; provi#e#E
.-e Jplainti%%sK s-all /ake s"!- variations in respe!t o% t-e J!ontra!tK &orks as /a 8e or#ere#
in &ritin0 8 t-e J#e%en#antsK I:3; Save as a%oresai# t-e Jplainti%%sK s-all not /ake an
alteration in or /o#i%i!ation to t-e J!ontra!tK &orks.
.-e 1o"rt &as o% t-e opinion t-at t-e plainti%% &as not entitle# to pa/ent &it- respe!t
to an variation &-i!- &as not Ta"t-orise#U. .-is %lo&e# %ro/ t-e ter/s o% !la"se 21
&-i!- provi#e# t-at TJaKll aut-orised variations o% t-e J!ontra!tK &ork s-all 8e val"e#
in t-e /anner provi#e#U. .-e pa/ent o% an /one t-at &as pai# in respe!t o% a
pro0ress !lai/ t-at !ontaine# a !lai/ %or a variationD #i# not entitle t-e 1ontra!tor to
pa/ent t-ereo% "nless t-e variation &as Ta"t-orise#U.

136
$8i# at 251.
132
J1+00K 41 1+0.
138
:1+88; 8 '1= 158.
13+
:1+8+; 42 '=6 82.

58

$n 'l9atabi v 2aidi
140
D t-e 1ontra!tor !lai/e# %or provi#in0 ?variation a#vi!e?. 1la"se
12 o% t-e !ontra!t provi#e#E
!rocedure for Variations
'e%ore !o//en!in0 &ork on a variationD t-e 1ontra!tor /"st provi#e to t-e 3&ner a noti!e in
&ritin0 !ontainin0 a #es!ription o% t-e &ork an# t-e pri!e :in!l"#in0 GS.; to t-e 3&ner :si!;. $%
not spe!i%ie#D t-e pri!e &ill 8e taken to in!l"#e t-e 1ontra!torVs /ar0in %or over-ea#s an# pro%it.
.-e noti!e /"st t-en 8e si0ne# an# #ate# 8 8ot- parties to !onstit"te a!!eptan!eI
5ariations s-all 8e s"8Ae!t to t-e overall !on#itions o% t-is !ontra!t.
.-e 1o"rt reAe!te# t-e !lai/ on t-e 8asis t-at t-e &ork %or/e# part o% t-e !ontra!t
pri!e. Ho&everD M!1oll G4 -a# sai# in o8iterE
141

$n or#er to esta8lis- t-e appellant?s entitle/ent to !lai/ %or t-e s"/s t-ere set o"tI.t-e
appellant -a# to esta8lis- t-at t-e re<"ire/ents o% !la"se 12 -a# 8een satis%ie#.
.-e /ere %a!t t-at t-e 1ontra!tor !an s-o& t-e S"perinten#ent 0ave an oral or#er to
!arr o"t t-e extra &orkD an# t-e &ork &as !arrie# o"t p"rs"ant to t-at or#erD &ill not
o% itsel% entitle t-e 1ontra!tor to pa/ent +(C .averner * Co Ltd v /lamorgan
County Council
142
:Taverner;;. )or &ill it !onstit"te a %ra"# o% an sort 8 t-e
7rin!ipal.
.-e variation !la"se in t-e .averner :&-i!- &as #e!i#e# solel on a point o% la&;
provi#e# t-at &-ile t-e 1ontra!tor &as 8o"n# to exe!"te all variations or#ere# 8 t-e
!o"nt s"rveorD t-e 1ontra!tor &as not re<"ire# to #o so i%D in its opinion :an# it &as
le%t to t-e 1ontra!tor to #e!i#e;D t-e variation &o"l# !a"se a##itional expenseD &it-o"t
0ettin0 an or#er in &ritin0 si0ne# 8 t-e !lerk o% t-e 1o"nt 1o"n!il.
'ase# on t-e a8oveD a 1ontra!tor /a %in# itsel% %a!e# &it- a #ile//a. S-o"l# t-e
1ontra!tor !arr o"t t-e &ork kno&in0 t-at it /a later not 8e entitle# to !lai/ "n#er
t-e variation !la"se or at all or s-o"l# t-e 1ontra!tor re%"se to !arr o"t t-e &ork
&it-o"t a &ritten or#er9 4 0oo# #is!"ssions on t-e possi8le !onse<"en!es o% t-e
1ontra!tor re%"sin0 to !arr o"t t-e #ire!tion is !ontaine# in Brodie v Corporation of
Cardiff7
143

4s note# a8oveD "n#er 1la"se 23 o% 4S 2124D t-e 1ontra!tor /a re<"est t-e
S"perinten#ent to !on%ir/ an oral #ire!tion in &ritin0D an# i% s"!- a re<"est is /a#eD
t-e 1ontra!tor is not 8o"n# to !o/pl &it- t-e #ire!tion "ntil t-e S"perinten#ent
!on%ir/s it in &ritin0.
Ho&everD s-o"l# t-e !ontra!t not !ontain si/ilar provisions to 4S 2124D an# s-o"l#
t-e S"perinten#ent or t-e 7rin!ipal re%"se to 0ive a variation #ire!tion in &ritin0 on t-e
8asis t-at t-e &ork &as !onsi#ere# to %or/ part o% t-e !ontra!t &orksD an ar8itration
!la"se in t-e !ontra!t /a nevert-eless e/po&er an ar8itrator to a&ar# pa/ent %or
t-ose &orks. .-is &o"l# 8e so not&it-stan#in0 t-e a8sen!e o% &ritten or#erD i% it is
#eter/ine# t-at t-e &ork &ere in %a!t extras.
144
4 1ontra!tor &o"l# 8e &ise to
reserve its ri0-t to ar8itrate an# t-en !arr o"t t-e &ork as to re%"se to pro!ee# &it-
t-e proAe!t /a p"t t-e 1ontra!tor in 8rea!- o% !ontra!t.
145

$n )ones v Dalcon Construction &ty Ltd,
146
!la"se 16D t-e variation !la"se provi#e#E

140 J200+K )SW14 433.
141 $8i# at J2K.
142 :1+41; 164 =. 35.2
143 J1+1+K 41 332.
144 Brodie v Cardiff Corp J1+1+K 41 332 %ollo&e# in (tate "ail 'ut!ority of 0ew (out! Wales v Baulderstone #ornibroo &ty Ltd :1+8+; 5 '1=
112 1ole G.
145 Bottoms v Lord Mayor City of 4or :1882; H"#son?s '. 1. :4t- e#; 208.
146 J2006K W414 205

5+

$% t-e '"il#er a0rees to "n#ertake t-e variationD t-e variation s-all 8e in &ritin0 an# si0ne# 8
8ot- t-e '"il#er an# t-e 3&ner.
W-eeler G4 o8serve#E
142

a variation is onl a variation in a!!or#an!e &it- !la"se 16 an# t-ere%ore onl !apa8le o% 8ein0
t-e s"8Ae!t o% a !lai/ p"rs"ant to !la"se 25 &-en in &ritin0 an# si0ne# 8 8ot- parties.
Built 1nterior &ty Ltd v .!ree Dinosaurs &ty Ltd
148
!on!erne# a '"il#er?s !lai/ %or
variations &-i!- -a# not 8een #ire!te# in &ritin0 as re<"ire# 8 !la"se 6.2 o% t-e
!ontra!t. .-e 1o"rt -el#E
.-e tpe o% &ork involve# in t-e #isp"te# variations !lai/s &as ver /"!- part an# par!el o% t-e
overall proAe!t. .-ere &as not-in0 to in#i!ate t-at at an ti/e t-e parties /ove# a&a %ro/
vie&in0 t-e 1ontra!t as t-e !o/plete %ra/e&ork 8 &-i!- t-eir le0al ri0-ts &o"l# 8e 0overne#.
So/e o% t-e ite/s /a &ell -ave <"ali%ie# as C5ariationsC &it-in t-e #e%inition in !la"se 1.2D 8"t
t-e pro!e#"ral stip"lations in !la"se 6.2 -a# not 8een !o/plie# &it-. .-is o%%ers no 8asis %or
t-e '"il#er i0norin0 t-e 1ontra!t :8 s"in0 in restit"tion; an# leaves t-e '"il#er %ar s-ort o%
provin0 a !ase o% !ontra!t"al variation.
8.3 1-at 2onstitutes Dwritin"D)
4 <"estion /a arise &-et-er %or t-e p"rpose o% !o/plian!e &it- a re<"ire/ent t-at
variations /"st 8e #ire!te# in &ritin0D or %or evi#entiar p"rposesD a parti!"lar
#o!"/ent !onstit"tes a #ire!tionD Cin &ritin0C.
5ario"s kin#s o% #o!"/ents /a 8e Ciss"e#C 8 t-e S"perinten#ent #"rin0 t-e
!arrin0 o"t o% t-e Works. .-ese in!l"#e not onl %or/al variation or#ers 8"t also
lettersD site instr"!tionsD /e/oran#aD #ra&in0sD /in"tes o% site /eetin0s an#
!erti%i!ates. W-i!- o% t-ese #o!"/ents /a !onstit"te an or#er in &ritin09
.-is iss"e !an 8e easil re0"late# 8 proper #ra%tin0 8e!a"se as a 0eneral r"le a
#o!"/ent &ill !onstit"te an or#er in &ritin0 i% it !o/plies &it- t-e re<"ire/ents o% t-e
!ontra!t.
14+

8.3.1 $rawin"
4 #ra&in0 /a 8e an or#er in &ritin0 #epen#in0 on t-e ter/s o% t-e variation !la"se
an# on &-at is state# on t-e #ra&in0. $n Wegan Constructions &ty Ltd v Wodonga
(ewerage 'ut!ority
150
D ="s- G see/e# prepare# to -ol# t-at revise# plans iss"e#
#"rin0 !onstr"!tion &ere #ire!tions in &ritin0 to var t-e Works.
$n Myers v (arl
151
D a provision t-at no alterations or a##itions &o"l# 8e a#/itte#
"nless #ire!te# 8 t-e 4r!-ite!t in &ritin0 "n#er -is -an# &as -el# not to 8e -ave
8een satis%ie# 8 "nsi0ne# sket!-es prepare# 8 t-e 4r!-ite!ts? o%%i!e
not&it-stan#in0 t-at t-e sket!-es #es!ri8e# t-e /anner in &-i!- t-e extra &ork &as
to 8e #one an# &ere %"rnis-e# to t-e 1ontra!tor 8 t-e 4r!-ite!t.
8.3.2 Si"na"e
Broadmeadows District Board v Mitc!ell,
152
involve# a 1ontra!t %or t-e !onstr"!tion
o% a 8ri#0e. .-e 1ontra!tor alle0e# t-at t-e !onstr"!tion o% t-e e/8ank/ent to an
altere# slope &as an ?extra?. .-e s"rveor -a# p"t "p a Cpro%ileC or 8oar# to &-i!- t-e
e/8ank/ent &as to 8e !onstr"!te#D 8earin0 t-e %ollo&in0 &or#s &ritten 8 t-e

142 $8i# at J21K.
148 J2003K )SW14 2+0.
14+ :Hals8"r?sD 5ol 4 para. 1126;.
150 J1+28K 56 62.
151 J1860K 30 =G (' +F :1860; 121 *6 452.
152 :1862; 4 WW , 4' :=; 101./


60

s"rveorE C#eig!t of ban allowing two feet for pitc!ing and metallingC. .-e 1o"nt
1o"rt A"#0e -el# t-is satis%ie# t-e re<"ire/ent o% &ritten a"t-orisation.
8.3.3 !a%ment 2ertificates
4 pro0ress !erti%i!ate &-i!- !erti%ies pa/ent %or extra &ork is not a &ritten or#er to
!arr o"t t-e &ork :.!arsis (ulp!ur * Copper Company v Mc%lroy * (ons
153
;.
$n 'ttorney /eneral v McLeod,
154
a re%eren!e to &ork t-at -a# 8een altere# in a
pro0ress !erti%i!ate &as also -el# not to 8e a#e<"ate or#er.
Ho&everD a pro0ress !erti%i!ate /a 8e Capproval or san!tionC 8 t-e S"perinten#ent.
$n (wanson Bros &ty Ltd v (tardawn 1nvestments &ty Ltd,
155
pa/ent &as !lai/e#
"n#er t-e variation !la"se %or extra &ork #one &it-o"t a &ritten instr"!tion. .-e
1ontra!t provi#e# t-at Call variations a"t-orise# or san!tione# 8 t-e 4r!-ite!tC &ere
to 8e val"e# an# an a#A"st/ent /a#e to t-e !ontra!t pri!e. )e&ton G "p-el# t-e/ as
variations asE
... all t-e ite/s in <"estion &ere a"t-orise# 8 t-e 4r!-ite!ts. 4n# /ost o% t-e/ &ere
s"8se<"entl san!tione# 8 t-e 4r!-ite!ts in t-at all or part o% t-e val"e or !ost t-ereo% &as
in!l"#e# in !lai/s 8 S&anson 'ros in respe!t o% &-i!- pro0ress !erti%i!ates &ere 0iven 8 t-e
4r!-ite!ts.
8.3.4 Letters and Binutes of Site Beetin"
4 letter or site /in"te &-i!- a"t-orises or #ire!ts t-e 1ontra!tor to !arr o"t spe!i%i!
&ork &it-o"t statin0 t-at t-e &ork is an extra or variation /a 8e s"%%i!ient :Bedford v
Cudgegong Boroug!
156
;.
8.4 ;ecover% in t-e absence of writin"
1ontra!tors -ave 8een a8le to esta8lis- an entitle/ent %or !o/pensation %or !arrin0
o"t variation &ork in t-e a8sen!e o% &ritin0 :an# &-ere &ritin0 &as re<"ire#; on t-e
8asis o% an i/plie# pro/ise to paD a separate !ontra!t -avin0 8een %or/e#D
!erti%i!ation 8 t-e S"perinten#entD &aiver an# estoppel an# 8 -avin0 t-e
S"perinten#ent?s assess/ent t-at an ite/ o% &ork &as not a variation overt"rne# in a
s"8se<"ent ar8itration pro!ess.
.-e %ollo&in0 !ases #is!"ss sit"ations in &-i!- 1ontra!tors -ave atte/pte# to 8e
!o/pensate# %or per%or/in0 a variation in t-e a8sen!e o% &ritin0. Ho&everD as
'rookin0 G an# Davi# 'ennett (1 -ave o8serve#E
152

.-e prin!iple "n#erlin0 parti!"lar #e!isions is not al&as entirel !learD an# t-e sit"ations in
&-i!- t-e 1ontra!tor /a s"!!ee# not&it-stan#in0 t-e apparent 8ar still a&ait a"t-oritative
!lassi%i!ation.
8.4.1 Implied promise to pa%
$n Liebe v Molloy,
158
an or#er in &ritin0 %ro/ t-e e/ploer or 4r!-ite!t &as re<"ire# to
!lai/ %or variation &ork. .-e 7rin!ipal -a# kno&le#0e o% extras or variations 8ein0
per%or/e#. Gri%%it-s 1G sai#E
15+

.-e la& on t-e s"8Ae!t /a 8e ver 8rie%l state#. .-ere &as a &ritten !ontra!t 8et&een t-e
partiesD an# t-ese ite/s !annot 8e 8ro"0-t &it-in its ter/s in %a!e o% t-e express stip"lation t-at

153 :1828; 3 4pp 1as 1040 :%ollo&e# in 4-G v M!=eo# :18+3; 14 =6:)SW; 246 at 251-2F %or a si/ilar vie& in )PD S/t- v 6 J1884K 1 )P=6 80;.
154 :18+3;14 =6 : )SW; =6 246F J1+18K 1 L' 13.
155 5i!torian S"pre/e 1o"rtD "nreporte# 8 Ma1+62.
156 :1+00; 16 W) :)SW; 1428.
152 '"il#in0 1ontra!ts :2n# e#;D 1+80D '"tter&ort-sD pa0e 108.
158 :1+06; 4 1=6 342.
15+ $8i# at 353N354.


61

Cno extra s-all 8e pai# %or "nless or#ere# 8 an or#er in &ritin0 8 t-e 4r!-ite!t in#orse# 8 t-e
e/ploerCF 8"t t-at stip"lation #oes not ex!l"#e alto0et-er t-e i/plie# #o!trine o% la& t-atD &-en
one /an #oes &ork %or anot-er at -is re<"estD an i/plie# o8li0ation arises to pa t-e %air val"e
o% it. .-e <"estion t-ere%ore is &-et-erD not&it-stan#in0 t-e a8sen!e o% &ritten or#ersD t-e
1ontra!tor is entitle# to re!over t-ese s"/sD or in ot-er &or#sD &-et-er "n#er t-e
!ir!"/stan!es o% t-e !ase an i/plie# !ontra!t to pa %or t-e/ is to 8e in%erre#.
4s -is Hono"r %"rt-er o8serve#D it /i0-t 8e in%erre# t-at N -avin0 re0ar# to t-e nat"re
o% t-e &orksD t-e %a!t o% t-e 7rin!ipal?s presen!e an# t-e nat"re o% t-e interest -e took
N t-e 7rin!ipal kne& t-at t-e &orks &ere o"tsi#e t-e !ontra!t an# kne& t-at t-e
1ontra!tor expe!te# to 8e pai# %or t-e/ as extras. His Hono"r &ent on to saE
160

W-en a /an #oes &ork %or anot-er &it-o"t an express !ontra!t relatin0 to t-e /atterD an
i/plie# !ontra!t arises to pa %or it at its %air val"e. S"!- an i/pli!ation o% !o"rse arises %ro/ an
express re<"est to #o &ork /a#e "n#er s"!- !ir!"/stan!es as to ex!l"#e t-e i#ea t-at t-e
&ork &as !overe# 8 a &ritten !ontra!t. So it &o"l# arise %ro/ t-e 3&ner stan#in0 8 an#
seein0 t-e &ork #one 8 t-e ot-er partD kno&in0 t-at t-e ot-er partD in t-is !ase t-e
1ontra!torD &as #oin0 t-e &ork in t-e 8elie% t-at -e &o"l# 8e pai# %or it as extra &ork. $% t-e
"/pire &as o% opinion t-at an o% t-is &ork &as #one "n#er s"!- !ir!"/stan!es t-at t-e 3&ner
kne& or "n#erstoo# t-at t-e 1ontra!tor &as #oin0 t-e &ork in t-e 8elie% t-at -e &o"l# 8e pai#
%or it as extra &orkD t-en t-e "/pire /i0-tD an# pro8a8l &o"l#D in%er t-at t-ere &as an i/plie#
pro/ise to pa %or it. .-at is one instan!e. 40ainD t-e 4r!-ite!t /i0-t -ave 8een expressl
a"t-orise# 8 t-e 3&ner to or#er extra &ork. @n#er s"!- !ir!"/stan!es it &o"l# not 8e
"n#erstoo# 8 eit-er part t-at it &as in!l"#e# in t-e l"/p s"/ spe!i%ie# in t-e !ontra!t.
.-e Hi0- 1o"rt or#ere# t-at t-e a&ar# 8e re/itte# to t-e ar8itrator %or
re!onsi#eration as toE
161

&-et-erD irrespe!tive o% t-e express ter/s o% t-e !ontra!tD it -as 8een prove# to t-e satis%a!tion
o% t-e "/pire t-at t-e respon#entD 8 -i/sel% or -is a"t-orise# a0entD pro/ise#D eit-er expressl
or 8 i/pli!ation %ro/ -is !on#"!tD to pa %or t-e &orks spe!i%ie# in list C1C or an o% t-e/ as
extra &orks.
Liebe v Molloy &as %ollo&e# 8 t-e ("eenslan# S"pre/e 1o"rt in Mic!ael v
'ndrews
162
. 4t %irst instan!e t-e 1o"rt "p-el# t-e 7rin!ipal?s !lai/ t-at t-ere &as no
&ritten or#er %ro/ t-e 7rin!ipal as re<"ire# 8 t-e !ontra!tD 8"t also %o"n# t-at t-e
&ork !lai/e# %or &as not in!l"#e# in t-e !ontra!t an# t-at t-e 7rin!ipal re<"este# t-e
a##ition o% t-e ite/s #"rin0 t-e !o"rse o% t-e !ontra!t &orks. Do"0las G -el# t-at -e
-a# t-e po&er to #ra& in%eren!es o% %a!t %ro/ %a!ts %o"n# 8 t-e lo&er 1o"rt an# t-atD
alt-o"0- t-e lo&er 1o"rt -a# not %o"n# t-at t-ere &as a pro/ise to paD t-e 7rin!ipal
/"st 8e taken to -ave i/plie#l a0ree# to pa a reasona8le pri!e %or t-e extras 8
reason o% -is re<"est %or t-e/.
8.4.2 Separate 2ontract
$% t-e extras or variations #ire!te# %all o"tsi#e t-e s!ope o% t-e variations po&erD t-en
t-at extra &ork or variations &ill 8e %ree# %ro/ an provision in t-e !ontra!t re<"irin0
t-at t-e #ire!tion /"st -ave 8een 0iven in &ritin0. $n s"!- sit"ations an in%eren!e or
a pro/ise 8 t-e 7rin!ipal to pa %or t-e extras &ill 8e /ore easil %o"n# an# a
separate !ontra!t &ill arise "n#er &-i!- t-e 7rin!ipal &ill 8e re<"ire# to pa a
reasona8le pri!e %or t-e extra &ork.
163

$n .!acwray v Winter,
164
t-e 7rin!ipal orall or#ere# extra &ork an#D in s"8se<"ent
pro!ee#in0sD so"0-t to !onten# t-at in respe!t o% t-at &ork t-e 1ontra!tor -a# not
o8taine# an or#er in &ritin0 %ro/ t-e 4r!-ite!t as re<"ire# 8 t-e !ontra!t. Bor t-e
1ontra!tor it &as ar0"e# t-at 8e!a"se t-e extras -a# 8een or#ere# 8 t-e 7rin!ipal

160 $8i# at 354-355.
161 $8i# at 355.
162 :1+25; 2 (G76 30.
163 Wren v %mmett Contractors &ty Ltd :1+6+; 43 4=G6 213 at 216.
164 :1880; 6 5=6 :=; 128.

62

-i/sel%D alt-o"0- not in &ritin0D t-e 7rin!ipal /"st pa %or t-e/ in#epen#entl an#
t-at a ne& !ontra!t 8ein0 t-"s !onstit"te#. .-e 5i!torian B"ll 1o"rt re%"se# to #ist"r8
t-e A"r?s %in#in0 %or t-e 1ontra!tor on t-is point sain0E
165

.-ere is not-in0 to prevent t-e e/ploer -i/sel% 0ivin0 #ire!tions as to a##itional &orks to 8e
exe!"te#D or 0ivin0 or#ers not oppose# to t-e !ontra!t. T-e emplo%er mi"-t orall% make an%
additional contract -e pleased.
$n "ussell v Viscount (a da Bandeira
166
t-e 7rin!ipal &as -el# lia8le to pa t-e proper
val"e o% arti!les s"pplie# 8 t-e 1ontra!tor a%ter t-e ori0inal !ontra!t &as !o/plete#.
.-is &as on t-e 8asis t-at t-e arti!les &ere s"pplie# "n#er a ne& !ontra!t 8 reason
o% t-e !o/pletion o% t-e ori0inal !ontra!t.
$n Wegan Constructions &ty Ltd v Wodonga (ewerage 'ut!ority,
162
t-e 1ontra!tor
&as a8le to !lai/ !o/pensation o"tsi#e t-e !ontra!t as t-e variations #ire!te# &ere
%o"n# to 8e 8eon# t-e s!ope inten#e# 8 t-e ori0inal !ontra!t.
8.4.3 *inal certificates
.-e S"perinten#ent /a !erti% a/o"nts as 8ein0 #"e to t-e 1ontra!tor %or extra
&ork. $% in s"!- !ir!"/stan!es t-e !ontra!t /akes t-e !erti%i!ate !on!l"sive as to
a#A"st/ents to t-e !ontra!t s"/D t-e 7rin!ipal /a %in# -i/sel% "na8le to rel "pon
t-e a8sen!e o% a &ritten or#er or to ot-er&ise !onten# t-at t-e extra &orks -ave not
8een per%or/e# in a!!or#an!e &it- t-e !ontra!t or at all.
168
Ho&everD as note# a8ove
an ar8itration !la"se /a 8e s"%%i!ientl &i#e to allo& an s"!- %inal !erti%i!ate to 8e
re-assesse#.
16+

8.4.4 1aiver
4 &aiver o!!"rs &-ere a part to a !ontra!t vol"ntar a8an#ons a ri0-t. Ho&everD t-e
provisions o% a !ontra!t !annot 8e &aive#D onl a ri0-t to en%or!e an entitle/ent /a
8e &aive#. .-ere is a 0oo# #is!"ssion o% ?&aiver? in Commonwealt! of 'ustralia v
Verwayen
120
. $n t-at !ase Mason G sai# o% &aiverE
121

4!!or#in0 to its stri!t le0al !onnotationD &aiver is an intentional a!t #one &it- kno&le#0e
&-ere8 a person a8an#ons a ri0-t 8 a!tin0 in a /anner in!onsistent &it- t-at ri0-tE
$t /a 8e open to t-e 1ontra!tor to ar0"e t-at t-ere -as 8een a &aiver 8 t-e
7rin!ipal o% t-e re<"ire/ent t-at extras 8e or#ere# in &ritin0.
W-at !on#"!t &o"l# 8e s"%%i!ient to !onstit"te a &aiver o% t-e re<"ire/ent isD
-o&everD not !lear. .-e 1ontra!tor in Bysout! v (!ire of Blacburn and Mitc!am
+0o7 <,
122
%o"n# its !lai/ %or t-e pa/ent o% !ertain extras "n#er a roa#-/akin0
!ontra!t /et &it- a plea t-at no &ritten or#er %ro/ t-e 1o"n!il &as o8taine# as
re<"ire# 8 t-e !ontra!t. .-e %a!ts state# &ereE
:a; t-e *n0ineer orall re<"este# t-e 1ontra!tor to #o t-e &orksF
:8; t-e 1o"n!il pai# %or !ertain extras #one &it-o"t &ritten or#erF

165 $8i# at 133.

166 :1862; 13 1' :)S; 14+ F :1862;143 *.6. 5+.
162 J1+28K 56 62.
168 /oodyear v7 Mayor of Weymout! :1865;W35 =G17 12F Laidlaw v7 #astings &ier Co. :H"#son?s '.1. :4t- e#.; 13;F 4oung v7 Ballarat %ast Water
Commissioners J182+K 5 5.=.6. :=.; 503 at 542 :B.1.;F "ic!ards v7 May :1883;W10 ('D 400.
16+ Brodie v7 Corp7 of Cardiff J1+1+K 4.1. 332. See %"rt-erD #iggins v7 Board of Land and Wors :18+5; 16 4.=... 158 :B.1.;;F 0eale v7 "ic!ardson
J1+38K 1 4ll *6 253F &restige * Co7 Ltd v7 Brettell J1+38K 4 4ll *.6. 346 at 354D per Greer =.G an# (tate "ail 'ut!ority of 0ew (out! Wales v7
Baulderstone #ornibroo &ty Ltd :1+8+;W5 '1= 112 :1ole G;;.
120 :1++0; +5 4=6 321.
121 $8i# at 328 relin0 on Craine v Colonial Mutual Fire 1nsurance Co Ltd :1+20; 28 1=6 305 at 326F /rundt v /reat Boulder &ty /old Mines Ltd
:1+32; 5+ 1=6 641 at 658.
122 J1+28K 5=6 562.


63

:!; t-e 1o"n!il stoo# 8 an# sa& t-e 1ontra!tor #oin0 t-ese extras &it-o"t
&ritten or#er an# took t-e 8ene%it t-ereo%F an#
:#; t-e 1ontra!tor &as in#"!e# 8 t-ese a!ts an# !on#"!t to 8elieve t-at t-e
1o"n!il &o"l# not re<"ire &ritten or#ers an# t-ere%ore a!te# to -is #etri/ent
"pon t-at 8elie%.
.-e B"ll 1o"rt "nani/o"sl -el# t-at even i% t-e alle0ations &ere prove#D t-e #i# not
esta8lis- eit-er &aiver or estoppel. .-e vie& o% $rvine 1.G. &as expresse# in t-ese
ter/sE
123

$t &as ar0"e# t-at t-ese %a!ts esta8lis-e# eit-er &aiver or estoppel. $n / opinion t-e esta8lis-
neit-er. .-e areD at /ostD representations as to a present intentionD s"!- representations /a
possi8l in so/e !ases %or/ a %o"n#ation %or estoppelD an# in ot-er !ases a/o"nt to an
ele!tionD 8"t &-ereD as in t-is !aseD t-e are plea#e# /erel as representations o% a part?s
present intention not to rel "pon a !on#ition o% -is lia8ilit in %"t"reD "nless t-e a/o"nt to a
pro/iseD t-e -ave no le0al e%%e!t.
.-e )e& Pealan# S"pre/e 1o"rt in Meyer v /ilmer
124
#e!line# to inter%ere &it- t-e
%in#in0 t-at t-e 7rin!ipal -a# &aive# its ri0-t to re%"se pa/ent %or extras "nless
or#ere# in &ritin0 &-ere t-e 7rin!ipal -a# or#ere# t-e extras personall an# &as
present &-en t-e or#ers %or s"!- extras &ere 0iven orall to t-e 1ontra!tor 8 t-e
4r!-ite!t an# part o% t-e a/o"nt !lai/e# %or extras &as a%ter&ar#s pai# %or 8 t-e
7rin!ipal "pon t-e 4r!-ite!t?s !erti%i!ate %or extras.
4n express ter/ provi#in0 t-at none o% t-e !on#itions o% !ontra!t !o"l# 8e varie# or
&aive# ex!ept 8 express !onsent in &ritin0 &as e%%e!tive in t-e vie& o% t-e B"ll 1o"rt
o% )e& So"t- Wales in 'ttorney9/eneral v McLeod
125
to provi#e a !o/plete ans&er
to t-e 1ontra!tor?s ar0"/ent t-at t-e !on#ition re<"irin0 or#ers in &ritin0 -a# 8een
&aive#. Ho&everD ar0"a8lD t-ere is no reason &- !la"ses s"!- as t-at !onsi#ere#
8 t-e B"ll 1o"rt !annot 8e &aive# like an ot-er. .-e Hi0- 1o"rt reasone# in
Melbourne #arbour .rust Commissioners v #ancoc
126
t-at a 7rin!ipal?s !on#"!t
/i0-t 8e s"!- as to pre!l"#e -i/ %ro/ relin0 on t-e a8sen!e o% a &ritten noti!e
#ire!tin0 a s"spension o% &orksD not&it-stan#in0 t-e presen!e in t-e !ontra!t o% a
!la"se o% t-e kin# !onsi#ere# 8 t-e B"ll 1o"rt in McLeod$s !ase.
8.4. 6stoppel
6e%er to Se!tion 2.8 %or a #is!"ssion on t-e iss"e o% estoppel.
8.4.# Subse+uent arbitration
W-ere a #isp"te arises as to &-et-er parti!"lar &ork is or is not a variationD t-e
1ontra!tor /a per%or/ t-e &ork an# -ave t-e /atter re%erre# to ar8itration &-ere
t-e ar8itrator /a 8e a8le to step into t-e s-oes o% t-e s"perinten#ent an# %in#
ot-er&ise. .-is o!!"rre# in (tate "ail 'ut!ority of 0(W v Baulderstone #ornibroo
&ty Ltd
122
an# Brodie v Corporation of Cardiff
128
:Brodie;. .-e relevant %a!ts in
Brodie in re0ar#s to t-is iss"e &ere as %ollo&sE
:a; t-e !ontra!t provi#e#D in &i#e ter/sD t-at #isp"tes &ere to 8e re%erre# to
ar8itration an# t-at #ire!tions to per%or/ a variation /"st 8e in &ritin0F

123 $8i# at 562.
124 :18++; 18 )P=6 12+.
125 :18+3;W14 =6 :)SW; 246 at 252.
126 :1+22;W3+ 1=6 520; :!o/pare Bysout! v7 (!ire of Blacburn and Mitc!am +0o7 <, at 52+D per =o&e G.
122 :1+8+; 5 '1= 112.
128 J1+1+K 41 332.


64

:8; #isp"tes arose a%ter t-e *n0ineer #ire!te# t-e 1ontra!tor to per%or/ &orks in
a !ertain &aF
:!; t-e *n0ineer re%"se# to !on%ir/ or 0ive t-e #ire!tion in &ritin0F
:#; t-e 1ontra!tor !arrie# o"t t-e &orkD !lai/e# %or t-e &ork as a variation an#
re%erre# t-e #isp"te to ar8itrationF an#
:e; t-e ar8itrator %o"n# t-at t-e &orks re<"ire# &ere in ex!ess o% t-ose spe!i%ie#
8 t-e !ontra!t an# a&ar#e# t-e 1ontra!tor !o/pensation.
.-e Ho"se o% =or#s #eter/ine# t-at t-e ar8itrator &as e/po&ere# to a&ar# t-at t-e
&orks in <"estion s-o"l# 8e pai# %or as extras #espite t-e a8sen!e o% or#ers in &ritin0
%ro/ t-e *n0ineer.


65

,iblio"rap-%
/rticles and ,ooks
'ell/oreD 4.D C5ariation !lai/s in t-e a8sen!e o% re<"ire# &ritin0C :2010; 26 Building
and Construction Law )ournal 150.
'aileD $.D Construction Law in 'ustralia :2n# e#D ='1 $n%or/ation Servi!es;D 1+8+.
'ro&nD ).D C=e0al , !ontra!t"al aspe!ts o% &ork pro0ra//in0E part 2 - !o/pensation
%or !-an0es to t-e se<"en!e or /anner o% &orkC :1+++; 15 Building and Construction
Law )ournal 12.
'"rkeD ..D C5ariations in 1onstr"!tion an# S"ppl 1ontra!tCD 1++2.
DavenportD 7.D C5ariations an# restit"tion - a ne0le!te# re/e#C :1++2; 23 'ustralian
Construction Law 0ewsletter 62.
DorterD G.D C7er%or/an!eC :1+++; 15 Building * Construction Law )ournal 361.
DorterD G.D C5ariationsC :1+++; 6 Building * Construction Law )ournal 156.
4tkin 1-a/8ersD #udson$s Building and %ngineering Contracts :12t- e#D 2010;.
Go-annsenD H.D C'e vi0ilant &it- variationsC :2004; +6 'ustralian Construction Law
0ewsletter 45.
GonesD D.D Building and Construction claims and Disputes :1onstr"!tion 7"8li!ations
7t =i/ite#; 1++6.
M!DonellD 4.D C*x!essive variation &ork - a risk to 8e !onsi#ere#C :1++0; 13
'ustralian Construction Law 0ewsletter 50.
Mea#D 7. , )e&ellD 1.D CS!-e#"le o% rates !ontra!ts - t-e a8ilit to !lai/ %or variations
%or !-an0es in <"antitiesC :2001; 2+ 'ustralian Construction Law 0ewsletter 11.
Me0ensD 7.D C$/plie# ter/s in 8"il#in0 s"8-!ontra!ts - .-e #eat- o% s"8-!ontra!tors?
prolon0ationD variation an# #isr"ption !lai/s9C :1++4; 34 'ustralian Construction Law
0ewsletter 31.
6i##ellD 6. , HaleD '.D C4ppropriation o% pa/ents - a !a"se o% a!tion %or
"n#o!"/ente# variationsCD 'ustralian Construction Law Bulletin :Septe/8er 2011;
22.
Sta"0asD G.D C5ariationsCD :1++5; 11 Building and Construction Law )ournal 156.

2ases
'l9atabi v 2aidi J200+K )SW14 433
'le3ander .!orn v .!e Mayor and Commonalty of London :1826; 1 4pp. 1as. 120
'le3ander .!orn v London Corporation 1 4pp 1as 120 H=:*;F :1820; 4pp 1as 120
'rbitration between Carr and t!e (!ire of Wodonga J1+25K 5=6 238
'rcos 1ndustries &ty Ltd v .!e %lectricity Commission of 0ew (out! Wales J1+23K 2
)SW=6 186
's!well * 0esbitt Ltd v 'llen * Co :1+12; 2 H"#son?s '1 :4t- *#n; 462

66

'tlantic Civil &ty Ltd v Water 'dministration Ministerial Corporation @nreporte#D )SW
S"pre/e 1o"rtD Giles GD 25 Septe/8erD 16 3!to8er an# 30 )ove/8er 1++2
'ttorney9/eneral v McLeod :18+3; 14 =6 :)SW; 246
Balfour Beatty &ower Construction 'ust &ty Ltd v 8idston /oldmines Ltd J1+8+K 2 (#
105
Barter v Mayor of Melbourne :1820; 1 4=G6 160;
Beaufort Developments +01, Ltd v /ilbert 9's! +01, J1++8K 2 4ll *6 :H=; 228
Bedford v Cudgegong Boroug! :1+00; 16 W) :)SW; 1428
Bet!le!em (ingapore &rivate Ltd v Barrier "eef #oldings LtdD @nreporte#D )SW
S"pre/e 1o"rtD 'rson GD 22 3!to8er 1+82
Bell Bros &ty Ltd v Metropolitan Water (upply, (ewerage and Drainage BoardD
@nreporte#D Western 4"stralia S"pre/e 1o"rtD 'rins#en GD 30 3!to8er 1+80
Brenner v First 'rtists Management &ty Ltd J1++3K 2 56 221
Brig!ton v 'ustralia and 0ew 2ealand Baning /roup Ltd J2011K )SW14 152
Broadmeadows District Board v Mitc!ell :1862; 4 WW , 4' :=; 101./
B& "efinery +Westernport, &ty Ltd v (!ire of #astings :1+22; 16 4=6 363
Brodie v Corporation of Cardiff J1+1+K 1 41 332
Built 1nterior &ty Ltd v .!ree Dinosaurs &ty Ltd J2003K )SW14 2+0
Bus! v W!ite!aven &ort * .own .rustees :1888; 52 G7 3+2
Bus! v .!e .rustee of t!e .own * #arbour of W!ite!aven :1+88; 52 G' 3+2
Bysout! v7 (!ire of Blacburn and Mitc!am +0o7 <, J1+28K 5=6 562
Cable Limited v #utc!erson Bros &ty Ltd :1+6+; 123 1=6 143
Carr v ) ' Berriman &ty Ltd :1+53; 8+ 1=6 322
Centrepoint Custodians &ty Ltd v Lidgerwood 1nvestments &ty Ltd J1++0K 56 411
C!adma3 &lastics &ly Ltd v #ansen * 4uncen +(', &ly Ltd :1+84; 1 '1= 52
"e C!ittic and .aylor :1+54; 12 WW6 653
Codelfa Construction &ty Ltd v (tate "ail 'ut!ority of 0ew (out! Wales :1+82; 14+
1=6 332
Commissioner for Main "oads v "eed * (tuart &ly Ltd :1+24; 131 1=6 328
Commissioners of t!e (tate Ban of Victoria v Costain 'ustralia Ltd :1+83; 2 41=6 1
Corporation of t!e City of 'delaide v 'ltmann :1+82; 46 S4S6 186
Davis Contractors Ltd v Fare!am 6rban District Council J1+56K 1 41 6+6
%ttridge v Vermin Board of t!e District of Murat Bay J1+28K S4S6 124
Forman * Co v .!e (!ip Liddesdale J1+00K 41 1+0

62

/ #awins and (ons &ty Ltd v (abemo &ty LtdD "nreporte# )SW S"pre/e 1o"rtD
Giles GD 8 Mar!- 1+8+
Beaufort Developments +01, Ltd v /ilbert 9's! +01, J1++8K 2 4ll *6 :H=; 228
/ra!am %vans * Co &ty Ltd v (&F formwor &ty Ltd :1++1; 8 '1= 142
#obbs Bell &ty Ltd v &ola :1++5; 2 '76 14
#unin Coney Construction v 6( J1+22K 461 Be#. 6ep. 2# 1220
1n t!e matter of an 'pplication by -ueensland %lectricity Commission J1+86K 33 '=6
1
)*W )amieson Constructions Ltd v C!ristc!urc! CityD 1-rist!-"r!- Hi0- 1o"rtD 1ook
GD )o 4108>82 :8 )ove/8er 1+84;
) Crosby * (ons Ltd v &ortland 6rban District Council :1+62; 5 '=6 121
)o!nson v 'merican #ome 'ssurance Company :1++8; 15 4=6 162
)o!n #olland +Constructions, &ty Ltd v Bell Bros &ty Ltd @nreporte#D S"pre/e 1o"rt
o% Western 4"straliaD '"rt 1GD Walla!e an# Wi!k-a/ GGD 31 G"l 1+80
)ones v Dalcon Construction &ty Ltd J2006K W414 205
8itsons (!eet Metal Ltd v Matt!ew #all Mec!anical * %lectrical %ngineers Ltd :1+8+;
42 '=6 82
Lewis Construction +%ngineering, &ty Ltd v (out!ern %lectric 'ut!ority of -ueensland
:1+26; 11 4=6 305
Liebe v Molloy :1+06; 4 1=6 342
Maggbury &ty Ltd v #afele 'ustralia &ty Ltd :2001; 185 4=6 152
Maye v .!e Colonial Mutual Life 'ssurance (ociety Ltd :1+24; 35 1=6 14
Melbourne #arbour .rust Commissioners v #ancoc :1+22; 3+ 1=6 520
Meyer v7 /ilmer :18++; 18 )P=6 12+
Mic!ael v 'ndrews :1+25; 2 (G76 30
Myers v (arl :1860; 121 *6 452
"e (7C7 Molineau3 * Co7 &ty7 Ltd7 and Board of .rustees of (ydney .almudical
College :1+65; 83 W) :)SW; 458
0eode3 Ltd v .!e Mayor, 'lderman * Burgess of Boroug! (winton * &endlebury
:1+58; 5 '=6 34
0ew 2ealand (tructures and 1nvestments Ltd v Mc8enzie J1+2+K 1 )P=6 515
&atman and Fot!ering!am Ltd v &ilditc! :1+04; H"#son?s '. 1. :4t- e#; 368
&erini Corp v Commonwealt! +"edfern Mail %3c!ange Case, J1+6+K 2 )SW6 530
-antas 'irways Ltd v )oseland * /illing :1+86; 6 )SW=6 322
"ivat &ty Ltd v B * 0 %lomar %ngineering &ty Ltd J2002K )SWS1 638
"ussell v Viscount (a da Bandeira :1862; 13 1' :)S; 14+ F :1862;143 *.6. 5+

68

(C .averner * Co Ltd v /lamorgan County Council :1+41; 164 =. 35.2
(!arpe v (ao &aulo "y :1823; =.6. 8 1- 4pp. 5+2
(imple3 Concrete &iles Ltd v .!e Mayor, 'lderman and Councillors of t!e
Metropolitan Boroug! of (t &ancreas 14 '=6 80
(ist Constructions v (tate %lectricity Commission of Victoria J1++2K 56 5+2
(tate (avings Ban of Victoria v7 Costain 'ustralia Ltd :1+83; 2 41=6 1
(tate "ail 'ut!ority of 0(W v Baulderstone #ornibroo &ty Ltd :1+8+; 5 '1= 112
(wanson Bros &ty Ltd v (tardawn 1nvestments &ty Ltd 5i!torian S"pre/e 1o"rtD
"nreporte# 8 Ma 1+62
.aylor Woodrow 1nternational Ltdv Minister of #ealt! 1+ S4S6 1D +
.!acwray v Winter :1880; 6 5=6 :=; 128
.!arsis (ulp!ur * Copper Company v Mc%lroy * (ons :1828; 3 4pp 1as 1040
.!e District "oad Board and "atepayers of t!e "oad District of Broadmeadows v
Mitc!ell :1862; 4 W,W , a?':=; 101
.!iess (ervices &ty Ltd v Mirvac -ueensland &ty Ltd J2006K (14 50
.uta &roducts &ty Limited v #utc!erson Bros &ty Limited :1+22; 122 1=6 253
.aylor Woodrow 1nternational Ltd v Minister of #ealt! :1+28; S4S6 1
6pdate Constructions &ty Ltd v "ozelle C!ild Care Centre Ltd :1++0; 20 )SW=6 251
Vidovic! v (calzi * (calzi :1+86; 3 '1= 85
Waler v Council of t!e Municipality of "andwic :1+2+; 30 S6 :)SW; 84
Wegan Constructions &ty Ltd v Wodonga (ewerage 'ut!ority J1+28K 56 62
Westpac Baning Corporation v .anzone &ty Ltd J2000K )SW14 25
WMC "esources Ltd v Leig!ton Contractors &ty Ltd :1+++; 15 '1= 4+
Williams v Fitzmaurice :1858; 152 *6 20+
Wormald %ngineering &ty Ltd v "esources Conservation Co 1nternational :1+88; 8
'1= 158
Wren v %mmett Contractors &ty Ltd :1+6+; 118 1=6 6+2
4ors!ire Water 'ut!ority v (ir 'lfred Mc'lpine * (on +0ort!ern , Ltd :1+85; 32 '=6
114
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