8/15/2019

IN
CONSTRUCTION CONTRACTS

• Almost all Construction Projects vary from the

original design, scope and definition.
• Whether small or large, Construction
projects will inevitably depart from the
original Tender, Design, Specifications
and Drawings prepared by the Design Team.

What Is Variation?
• A Variation -sometimes referred to as
a Variation Instructions Or Variation
Order (VO) or Change Order , is an
Alteration to the Scope of Works in
a Construction Contract,. In the form of an
addition, substitution or omission from the
original Scope of Works.

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• Variations may include:

• Alterations to the Design.
• Alterations to Quantities.
• Alterations to Quality .
• Alterations to working conditions.
• Alterations to the sequence of Work.

• Variation may NOT includes :

• Change the fundamental nature of the Works.
• Omit Work so that it can be carried out by
another Contractor..
• Be instructed after Practical Completion.
• Require the Contractor to carry out work that
was the subject of a Prime Cost Sum.

• In legal terms, a Variation is an agreement

supported by consideration to alter some terms
of the Contract..
• No power to order Variation is implied, and so
there must be clause in Condition of Contract
the Contract which give the power to
instruct Variations.
• In the absence of such clause the Contractor may
reject instructions for Variations without any legal
consequences.

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• Variation may give rise to additions or

deductions from the Contract Sum.
• Variations may also (but not necessarily)
require adjustment of the completion date.
• Variations may be valued by agreement
between the Contractor and Consultants QS

• According to ICTAD/SBD/02
• Clause 13.1 –Variation may be initiated by the Engineer
at any time prior to issuing the Taking Over Certificate
for the Works, either by an instruction or by a request
for the Contractor to submit a proposal
• The Contractor shall execute and be bound by each
Variation , unless the Contractor promptly gives notice
to the Engineer stating with supporting documents
that the Contractor cannot readily obtain the materials
required for the Variation.

• Upon receiving this notice , the Engineer shall

cancel ,confirm or vary the instructions. Each
Variation may includes:
• a.).Changes to the quantities of any item of
work included in the Contract.
• b).Changes to the quality and other
characteristics of any item of work.
• c).Changes to the levels, positions and
dimension of any part of Works

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• d).Omission of any work unless it is to be carried out by

others.
• e).Any additional work Plant, Materials or services
necessary for the Permanent Works, include any
associated Tests on Completion, boreholes and other
exploratory works.
• f).Changes to the sequences or timing of the execution
of work.
• The Contractor shall not make any alteration or
modification of the Permanent Works, unless and
until the Engineer instruction or approves a Variation

PROCEDURE FOR VARIATION

• A Variation quotation to be prepared by

the Contractor on the request of Consultant.
• It has to be prepared often based on the rates
and prices provided by the Contractor in their
Tender , provided the work is of a similar nature
and carried out in similar conditions.
• If similar types of works to those instructed by
a Variation cannot be found in the Drawings,
Specifications, or Bill of Quantities, then
fair Valuation of the Contractor, Direct Costs
Overheads and Profit is necessary.

• Contractors QS must prepare the quotations

for the variations and get it approved from
the consultant QS prior to include it in any
Interim Valuation.
• Otherwise Consultant QS may reject to
approve this item included in the Interim
Valuation

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• According to Clause 13.3 Variation Procedure

is as follows.
• If the Engineer requests a proposal ,prior to
instructing a Variation, the Contractor shall
respond in writing as soon as practicable,
either by giving reasons why he cannot
comply or if he is ready to do so with following
information.

• A description of the proposal work to be

performed and a program for its execution.
• Contractors proposal for necessary modification
to the overall program of works.
• The Contractor proposal for the evaluation of the
Vriation.
• The Engineer shall, as soon as practicable after
receiving such proposals respond with the
approval ,disapproval or comments.
• The Contractor shall not delay any work while
awaiting a response.

• Each instruction to execute a Variation with

any requirements for the recording of costs
shall be issued by Engineer to the Contractor
who shall acknowledge receipt.

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Examples:
• 1).Willingdon Light Buff Facing Bricks in lieu of
Hildon Tuder Brown Facing Bricks. Tuder Brown
Facings was Rs. 21180. 00 per 1000, including
delivery, when contractor priced the bills, and the
price of Willingdon Light Buff Facings, delivered,
was Rs. 22,704.00 per 1000. The bill rates are Rs.
2,964.00 for 102.5 mm thick walls and Rs.
4,960.00 for 215 mm thick walls. The overhead
and profit was 20%. Calculate the new rates for
each wall thicknesses and prepare variation
account.

• 2). The roof slab to the flat increased from 125 mm thick
to 175 mm thick and the main reinforcement increased
from 12 mm to 16 mm Ø bars. The bill rate for 1 m³ Grade
C20 concrete is Rs. 14,400.00 and labour for placing is 12
hours per m³ for slab thickness ≤150 mm and 8 hours per
m³ for slab thickness >150 mm and ≤ 450 mm and the
labour rate is Rs. 640.00 per 8 hour day. The bill rate for 1
tonne steel bar is Rs. 118,000.00 and Bar Bender hours for
cut, bend and fix is 70 hours per tonne of 12 mm Ø bars
and 60 hours per tonne of 16 mm Ø bars. The binding wire
required is 15 kg. per tonne of 12 mm Ø bars and 10 kg. per
tonne of 16 mm Ø bars. A Bar Bender is paid Rs. 960.00 per
8 hour day and cost per kg. of binding wire is Rs. 150.00.
The overhead and profit was 20%. If the slab area is 12.0 m
X 5.0 m. calculate the additional cost of slab and
reinforcements, if the main bars are placed at 150 mm
centres.

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• 3). Living room windows in flats to be 1800 x 1500

mm in lieu of 1800 X 1200 mm. The bill rate for this
item is Rs. 19,400.00 and the overhead and profit is
20%.

• 4). Glazed screens to balconies to be glazed with

toughened clear float glass with putty in lieu of clear
glass in beads.

• 5). Window removed from existing store, opening in

wall altered as necessary; provision of door and frame
complete with deadlock, handles and closers.