CAREERTIPS: 5 key things things Construction Professionals should understand about variations to the works

 

1. What is a variation?

A “variation” means any change to the original scope of work, which can be an addition or omission to the work. Such changes can have an impact on the:

• cost; and

• completion time

of the project.


2. How are variation orders issued?

Most standard form contracts require that a variation must be in writing to be valid. Only the person with the necessary authority in terms of the contract can issue such an instruction (usually the Principal Agent / Engineer). These instructions are known as variation orders.

3. What do you do if the instruction to vary is not in writing?

If the Contractor is verbally instructed to perform extra work, and the contract requires such an instruction to be in writing, he should write to the Principal Agent / Engineer to request a variation order in writing.

4. When do variations occur?

Variations can be due to, but not limited, to the following:

• additions or omissions to the scope of work;

• changes to the quantity of work; or

• removal of a part of the scope of work.

It is important to read your contract to know exactly what would constitute a variation.


5. How to value a variation?

When a variation order is given, the Contractor will usually be required to submit a valuation of the variation. It is important for the Contractor to understand:

• how such a valuation should be submitted; and

• the timeframe in which the valuation should be submitted. 

Also read: 5 key things Construction Professionals should understand about standard form contracts