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Variations: Do Contractors Receive all Monies Due to them?

Variations: Do Contractors Receive all Monies Due to them?

Variations are Inevitable, but do Contractors Receive as much as they are Due?

Additional works (most commonly known as Variations) to the contractor’s contractual scope of work are, of course, inevitable. Where they occur, you need to be clear on:

  • The action the construction contract demands you take.
  • Invariably, most construction projects overrun. Are there grounds for an Extension of Time (EoT)?
  • How has the variation been notified to the contractor?
  • What internal systems are in place by the contractor’s company to record these variations?
  • How does the contractor notify the client of these variations?

Without looking at the key items, the contractor runs the risk of not being paid the full amount for variations – or at the very worst not being paid anything. In actual fact, if there is clearly additional time required on the project and no formal delay notices put in place, it could actually cost the contractor.

Nobody will dispute the fact that if a construction project was carried out to the letter of the contract, it would probably be delayed by a considerable period of time. It is essential that a good client/contractor relationship is based on a mutually agreed understanding of the construction contract and its parameters, and the flexibility of both parties to work within the spirit and not necessarily the letter of the contract.

Should you wish to discuss the above in more detail or if you need assistance with any commercial aspects of your construction projects, please don’t hesitate to contact me either through my website www.qsadvisor.com or via e-mail grant@qsadvisor.com

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