Managing variations in construction

How to manage construction variations? What is a construction variant? Forecast revenue and actual revenue can be two very different things and the importance of.

Check the figures as often as possible. It might be difficult to monitor a project’s progress on a daily basis, but. A variation is an alteration to the scope of works laid out in a construction contract.

A construction contract is an agreement to build and can be subjected to variability. Contractual provisions. Potential Causes of Variation. A variation to a contract is one of the main reasons that a contract can fall into dispute.

Among the disputes arise in contract management process, variations in construction contracts play a major role with an impact on project cost. It can increase or decrease the project cost. In this article, I want to share most of the theories behind variations in construction projects. Changes to the plans are effected by means of a variation order initiated by a consultant on behalf of the client or as raised by the contractor.

Almost all construction projects vary from the original design, scope and definition. Variation is almost an inevitable part of any construction claim. Management of variations in construction contracts 3Adjustments are therefore necessary to reflect the changing circumstances that impinge the construction process. However, the contractor is not obliged to accede to any request for change. In construction and engineering contracts, the basis of payment to the contractor in respect of any variation will usually be established in the contract eg bill of quantities.

Depending on the contract terms a supervising engineer may have the authority to agree variations , including the assessment of compensation and time extensions. To avoid this potentially costly delay, issuing, valuing and then managing a variation to a contract properly is extremely important. By undertaking an analytical approach to understanding and interpreting the construction of the contract, set against the facts in han this will go some way to improve the agreement the valuation of the variations , settlement final accounts and ultimately avoid timely and costly disputes. Managing variations in construction.

Construction Project Management - Variations Management. Changes are made for differing reasons such as design development, stakeholder requirements or cost, and can potentially decrease the scope of works as well as increase it. This chapter deals with variations to the scope of works and services of contractors or consultants. The first step in identifying a variation to the scope is the identification of the scope itself.

In particular, the differences in approach construction contracts take to valuing variations and the implications of this, both during the project and in the assessment of tenders. Due to these characteristics it is practically impossible to predict everything in advance. Variations may also (but not necessarily) require adjustment of the completion date.

The particular nature of the construction process makes the subject of variations an important one. Inevitably, because the parties are unable to anticipate everything which may happen or where a contract is agreed before the design or scope of works are fully finalise frequent changes are often required. Management of Variations could be counted as one of the most significant challenges in construction management. These involve disagreement as to whether the work in question is a variation , or whether it is part of the contracted scope of works the contractor was obliged to undertake.

This issue is common due to the nature of construction works, while the way the construction “product” is described in a contract is complex and can often be uncertain. Project management basics variations and change control 1. Whether it’s during the contract period or at the final account stage, it is not uncommon that construction disagreements and disputes often relate to contract variations and in particular, the method by which the variation is valued. If the government wishes to make a change to the project deliverables, it must first submit a variation proposal to the private partner.