Variations Flashcards
What are variations?
An alteration to the scope of works in the contract - may be spec changes, additional works, design change, quality change etc..
What form must architects instructions take?
- They must be in writing
- The QS cannot make additions to the contract sum for AIs that are not written
What about oral instructions?
- The contractor has 7 days to write to the architect asking for the AI to be confirmed
- If the architect does not respond in a further 7 days it is taken as being an AI
Can the contractor object to a variation?
They can make ‘reasonable’ objections in writing for variations relating to those described in 5.1.2 (working conditions / access / working hours etc)
How soon must a contractor comply with an instruction?
Forthwith / straight away
What can the architect do if they don’t?
- He can issue a compliance notice
- If there is still no action by the contractor within 7 days, others can be employed to carry out that work and the additional cost charged to the contractor
What 3 methods are there of obtaining a cost for variations?
- Agreement between the employer and contractor
- A schedule 2 quotation
- Valuation by the QS under the valuation rules
What costs does the quotation contain?
a) Value of the work
b) Any adjustment of time
c) Money in lieu of direct loss and expense
d) The fair and reasonable cost of preparing the quotation
What costs is the contractor entitled to if the quote is rejected?
The fair and reasonable cost of preparing the quote, as long as the quote itself was fair
What are the valuation rules?
- There are three rules for measurable work:
a) If it is of a similar character, quantity and in the same conditions as existing work, then the bill rates should be used
b) If it is of a similar character, but different quantity or conditions, the bill rates should be used as a basis but a fair allowance should be made to take account of the difference
c) If it is not of a similar character, fair rates and prices should be used
How should non-measurable work be priced/ valued?
Should be valued by dayworks
What are ‘fair rates and prices’?
A market rate, or price based on actual costs, on in line with current cost data e.g. SPONS
What is dayworks?
Prime cost of labour, materials and plant plus a mark up for overheads and profit.
What document should the prime cost be calculated in accordance with, when costing dayworks?
Should be calculated in accordance with the ‘Definition of the Prime Cost of daywork carried out under Building Contracts’ published by the RICS
What is quantum meruit?
Translates as ‘what he deserves’ i.e. fair and reasonable
