Variations

Question 1

What are variations?

Answer 1

An alteration to the scope of works in the contract - may be spec changes, additional works, design change, quality change etc..

Question 2

What form must architects instructions take?

Answer 2

• They must be in writing

- The QS cannot make additions to the contract sum for AIs that are not written

Question 3

What about oral instructions?

Answer 3

• 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

Question 4

Can the contractor object to a variation?

Answer 4

They can make ‘reasonable’ objections in writing for variations relating to those described in 5.1.2 (working conditions / access / working hours etc)

Question 5

How soon must a contractor comply with an instruction?

Answer 5

Forthwith / straight away

Question 6

What can the architect do if they don’t?

Answer 6

• 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

Question 7

What 3 methods are there of obtaining a cost for variations?

Answer 7

• Agreement between the employer and contractor
• A schedule 2 quotation
• Valuation by the QS under the valuation rules

Question 8

What costs does the quotation contain?

Answer 8

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

Question 9

What costs is the contractor entitled to if the quote is rejected?

Answer 9

The fair and reasonable cost of preparing the quote, as long as the quote itself was fair

Question 10

What are the valuation rules?

Answer 10

• 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

Question 11

How should non-measurable work be priced/ valued?

Answer 11

Should be valued by dayworks

Question 12

What are ‘fair rates and prices’?

Answer 12

A market rate, or price based on actual costs, on in line with current cost data e.g. SPONS

Question 13

What is dayworks?

Answer 13

Prime cost of labour, materials and plant plus a mark up for overheads and profit.

Question 14

What document should the prime cost be calculated in accordance with, when costing dayworks?

Answer 14

Should be calculated in accordance with the ‘Definition of the Prime Cost of daywork carried out under Building Contracts’ published by the RICS

Question 15

What is quantum meruit?

Answer 15

Translates as ‘what he deserves’ i.e. fair and reasonable