VARIATIONS

Question 1

1. What is the meaning of the term “variation” as found in the ABIC contract?

Answer 1

A variation is a change to:

a. The scope of the works as contemplated by the contract documents and capable of being executed under this contract.
b. A dimension or level of the works.
c. The materials, workmanship or quality of any part of the works.
d. A detail of the works.
e. The order of precedence of the contract documents

Question 2

2. What are the three elements that may be impacted by a variation? Give examples of each.

Answer 2

Delay in the critical path and therefore affecting the date of PC, Cost of works and contract price, scope of works.

Question 3

3. Does a variation always cause an adjustment to the contract? Explain.

Answer 3

Varies. Where the variation is the result of a change made by the client, an instruction by the architect or due to a latent condition, inclement weather ‐ an adjustment to the date of PC with or without costs will result. If it is due to the builder’s negligence or not keeping with the terms of the contract (i.e. where the architect requests to open up works due to builder not allowing an inspection), then no variation to time and costs is incurred – the builder bears the risk.

Question 4

4. Describe the process by which a variation and its effects are recorded and managed under the ABIC contract?

Answer 4

The architect will assess the variation provided by the contractor and will provide a written architect’s instruction to proceed or not. If instructed to proceed, the architect will need to issue standard proforma which includes: instruction to proceed with a variation, and where applicable, adjustment of time and/or Contract Price adjustment.

Question 5

7. Are there any risks to the architect if they do not assess the variation according to the contract? Discuss.

Answer 5

In breach of the CAA and their role as contract administrator/independent assessor and certifier.

Question 6

8. Who assesses the value of variations and why?

Answer 6

The architect/contract administrator assesses the value of the variation by receiving the written variation notice from the contractor and inspecting this on site (if applicable). The architect is to act independently and give a genuine assessment of what they consider the value to be.

Question 7

9. Who approves variations and why?

Answer 7

The architect/contract administrator approves variations (for the reason stated above).

The architect is to act independently and give a genuine assessment of what they consider the value to be.

Question 8

10. Who assesses the impact of the variation and how is this done?

Answer 8

The architect assesses the variation. This is done by visiting site to assess the change, or obtaining relevant information in relation to the variation. Based on this information, the architect can then assess the validity of the variation and will submit to the contractor a written instruction to proceed or not with the variation. Refer to 4 above.

Question 9

11. Under the ABIC contract what is the difference between the term “variation” and a claim by the contractor to “adjust the contract”?

Answer 9

A variation is a change to the scope of a works in a contract (where this is an addition or reduction), resulting in a change to the contract price.
A claim to adjust the contract is an adjustment in the contract price (often by variation) or the date for practical completion (i.e. weather delay – no change in contract price) – can be either or both.