Tutorial 2

1. State the circumstances that an architect is empowered to issue variation order

to a contractor in a building contract.

The architect is empowered to issue variation orders in the circumstances of:

Variations initiated by Employer

During the construction, the change in employer user’s requirements such as
rethinking of the needs, change in the nature and use of anticipated/ future utilization of
the finished works. Moreover, sometimes there may be review and reassessment of the
design by Architect or Engineers due to the issues like safety of the building, the
building buildability and correction of deficiencies or error. Furthermore, If the Architect
wrongly or being negligent to give advice to the contractor and there means to be
variation after the contractor has built. Next, in some scenarios, the employer and
architect has interrupted the contractor’s undertaking of the works under the contract by
changing the method or sequence of working. Thus, the variation must be made
immediately to prevent delay of work. The revision attributed statutory or legislative
changes. For example, BOMBA as a statutory agent for the fire system of the building.

Variation initiated by Contractor

In the design and build procurement method, the review or reassessment of
design are responsible by the contractor to make correction of discrepancies in contract
documents. The changes due to consideration involving buildability by the contractor. It
can also be miscellaneous reasons due to subcontractors and suppliers. For example,
the alteration of the standard of goods and materials.
2. Discuss the proper procedures in issuing a valid Architect Instruction by the
contract administrator / architect in the building contract.

The proper procedures in issuing a valid Architect Instruction by the contract

administrator or architect in the building contract is all Variation Orders shall be
measured and valued by Consulting Quantity Surveyor. Variation Orders also changes
to be provision in regarding working hours, working space, accessibility of the site,
execution of work in any specific order and execution of temporary works. Where any
recording of site information or site measurement is required and a Consulting Quantity
Surveyor should visit the site regularly.

Other than that, the Contractor shall provide assistance to Consulting Quantity
Surveyors as may be necessary. Contractor shall also be responsible for giving the
opportunity to be present to take such notes and measurements on site together with
the Consulting Quantity Surveyor. The condition of variations of works cannot be
measured by daywork rates or If no daywork rates, valuation shall be based on actual
cost of Contractor’s material, additional construction plant and scaffolding, transport and
labour, plus 15% overhead and profit.

Moreover, Variation Order work is of similar character to work included in the

contract bills but may not be executed under similar conditions; rates in contract bills are
the basis of valuation with fair allowance for difference in conditions. All provisional
quantities shall be re-measured by Consulting Quantity Surveyor and rates in contract
bill shall be used. The addition or omission value of the Vos shall be included in the
interim certificate.
3. PAM 2018 clause 11.6 on valuation rules stated the methods adopted in valuing
variation of works as instructed by the architect.

Briefly explain a Consulting Quantity Surveyor in carry out the valuation of

variation works to enable the claim submitted by the contractor can be accepted.

-For the valuation of variation works to enable the claim submitted by the
contractor can be accepted and carried out by Consulting Quantity Surveyor
(CQS), there are two types of rules for valuation of variation.

The first type of rules for valuation of variation is condition where variation
of works can be measured. Firstly, the work is under a similar character, the
condition and quantity are similar as in the contract documents and does not
significantly change the quantity of work as set out in the Contract Documents,
the rates and price in the Contract Documents shall determine the valuation.
Besides that, where work is under similar character to work as set out in the
Contract Documents but is not executed under similar conditions but there is a
significant change in the quantity of work carried out, the valuation shall be
measured based on rate adjustment. After that, the last condition is where work
is not a similar character to work as set in the Contract Documents, the valuation
shall be at fair market rates and prices determined by the Quantity Surveyor.

The second type of rules for valuation of variation is condition where

variation of works cannot be measured. For this condition, the valuation shall be
based on the dayworks rates. If the variations cannot be properly measured and
valued, the valuation shall be based on the actual cost of Contractor’s material
that is listed in the contract document, additional construction plant and
scaffolding,transport and labour, plus 15% overhead and profit.