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15 Rules for construction variation claims and change

orders
28/10/2021 2 Comments
https://www.pn-projectmanagement.com/construction-management-blog/15-rules-for-construction-variation-claims-and-change-orders 1/14
Most construction projects will change and vary from the works that were originally priced. There
will be unexpected construction delays and problems.
Variations and changes occur for many different reasons, and not all of them entitle the Contractor to
a claim.
Contractors that don’t claim variations or change orders they are entitled to claim will incur costs
that they did not allow for in their price. Contractors that do not claim delays they are entitled to
claim could finish the project late and be penalised by the Client.
Regrettably some construction projects end in long, expensive, and bitter disputes over the validity of
variation claims and change orders. But, it does not have to be this way.
I have been involved with over 120 construction projects. I submitted variation claims or change
orders on almost all of these projects. Some projects nearly doubled in value and some projects
increased in time by up to 80%.
I settled all change orders amicably with the Client, except two projects. One had a dispute
adjudication board on the project and this was used to resolve the issue. One project we employed a
lawyer and declared a dispute because the Client did not respond to our claims.
I got most of the time and money I claimed. And, importantly we did further projects with most
Clients, so our reputation was not tarnished with these change orders.
It is possible to submit and agree variation claims and change orders amicably without upsetting
Clients.
Preparing, submitting, and negotiating variation claims and change orders is something that
contractors often do badly. It's a topic close to my heart, and something I've written several articles
about, which I reference below. I've also written an easy to read guide for contractors: Construction
Claims: A Short Guide for Contractors.
Below are 15 simple rules to help you successfully deal with variations and changes on your
construction project.
#constructiondisputes #changeorders
15 Rules for dealing with construction variations and

delays
1. Most construction projects will have changes and delays, and Contractors are usually entitled
to claim for the changes and delays which were not caused by their team, and which they did
not know about or could not have reasonably foreseen when they priced the project.
(Read: When Contractors Can’t Claim a Delay From Their Client on
Construction Projects.)
2. Failure to claim legitimate change orders could mean that the Contractor does work for free,
and if they complete the project late due to delays beyond their control which they didn’t
claim, they could even be penalised by the Client. (Read: Are you working for free on your
construction project?)
3. The Contractor is not automatically entitled to be paid for the change, or granted additional
time. The Contractor must prove the additional time and costs. They must justify why these
costs and time are due. They need to show they have taken all steps to avoid the variation,
and that they have provided adequate notification and if possible forewarning to the Client of
the event and it's implications. As they say: There is no such thing as a free lunch! (Watch: An
introduction to construction variation claims for construction project
managers Video 4 - Reasons claims are rejected)
4. It’s important Project Managers take an active part in preparing variation claims, or certainly
check them. It's their project, and invariably their name at the bottom of the claim. They
must have the facts at hand when the Client quizes them on the claim. (Read: Should
construction project managers take the lead with variation claims?)
5. The Client must be notified of delays or changes as soon as they become known. This gives
Clients an opportunity to rectify issues. Change orders must be submitted when the event
occurs. Early agreement of change orders is essential for the Contractor’s cashflow.
(Watch: An introduction to construction variation claims video 19 - Variation
Claim Notification.)
6. All contractual correspondence must be in writing. (Watch: An introduction to
construction variation claims for construction project managers video 15 -
Instructions.)
7. Accurate project records are essential for proving change orders. These records must be
maintained from the project start. (Read: Documents That Will Make Your
Construction Variation Claim Successful.)
8. Contractors must take the time and put effort into preparing change orders. Checking that
they have allowed for all impacts and costs of the event. Usually Contractors have one chance
to get the variation claim right. The claims are often worth lots of money, so the time spent
on them will be well worth the effort. (Read: Construction project variations – have you
included all your costs?)
9. Change orders must be well thought through, accurate, logical, clear, and with supporting
documentation, so that even those not familiar with the project understand them. (Read: Will
your next construction variation claim be successful?)
10. Spurious and inflated change orders should be discouraged. They are a waste of time and
reflect poorly on the Project Manager’s integrity, and puts legitimate claims in jeopardy.
(Watch: an introduction to construction variation claims video 8 - when you

can not claim extension of time.)
11. Contractors must be prepared to negotiate change orders with their Clients. This negotiation
does not necessarily mean giving back time and money which the Contractor was entitled to,
rather it’s about arguing the facts with the Client and persuading them of the virtues of the
change order. (Watch: Negotiating a construction variation claim – read this first
to improve your success 10 Tips To Submit Winning Variation Claims.)
12. Change orders should not be viewed as a way to make money. Where possible Contractors
should limit change orders by forewarning Clients early of problems, and even avoiding some
projects and Clients that are disorganised. Change orders are seldom the cash cows that
Contractors think they are. (Watch: An introduction to construction variation
claims video 17 - When variation claims aren't good for contractors.)
13. Contractors must promptly deal with change orders from Subcontractors. Where these are
for the account of their Client, the Contractor should check the change order is correct and
clear, then add their costs and perhaps other Subcontractor’s costs, before submitting the
change order to the Client. (Watch: An introduction to construction variation
claims for construction project managers video 13 - Claims by Subcontractors
against Contractors.)
14. When Clients do not agree to a change order the Contractor can declare a dispute, following
the processes outlined in the contract. Usually Contractors cannot stop work. (Read: Don’t
you hate it when clients ignore your change orders?)
15. Before declaring a dispute Contractors should exhaust all means of resolving the issue, and
consider whether the dispute will yield a positive outcome. Disputes cost time and money to
resolve, with often no guarantee of a positive outcome. (Read: Avoiding disputes on your
construction project.)
Winning Construction Change Orders
It is possible to amicably agree change orders with Clients by following these 15 rules. Contractors are
entitled to claim for legitimate changes and delays which they could not reasonably have foreseen or
allowed for. Change orders should not end in disputes.
#constructionclaims #constructioncontracts #constructionlaw
Other useful articles

Don’t start construction projects without a proper contract.
Can I Claim for Additional Time on My Construction Project?
I nformation in this article is from the author's

book ‘Construction Claims: A Short Guide for Contractors’.
© 2021 This article is not to be reproduced for commercial
purposes without written permission from the author.
Do you want to learn how to manage construction

projects successfully
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Paul Netscher has written several easy to read books for owners, contractors, construction managers, As an Amazon Associate I earn
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2 Comments May 2023
Steve Smith 5/4/2023 08:07:19 am March 2023
January 2023
I found it interesting when you said that changing orders could help prevent making mistakes October 2022
that would need proper settlement. Last night, my best friend told me that he was looking for a August 2022
reliable debt collector that could assist him in collecting debts due to construction litigation of June 2022
past-due dates of agreement. He asked if I had any idea what would be the best option to
consider. I appreciate this informative article, I'll tell him it will be much better if they consult May 2022
a trusted debt collection attorney as they can provide more information about how the process March 2022
works. January 2022
Reply December 2021
November 2021
mental health hoodie 21/8/2023 06:08:45 pm October 2021
September 2021
I thoroughly enjoyed reading this blog post. It was informative and well-written. August 2021
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Copyright 2016 - The attached articles

cannot be reproduced for commercial
purposes without the consent of the
author.
The opinions expressed in the attached articles are
those of the writer. It should be noted that projects
are varied and different laws and restrictions apply
which depend on the location of the contractor and
the project. It's important that the reader uses the
supplied information taking cognisance of their
particular circumstances. The writer assumes no
responsibility or liability for any loss of any kind
arising from the reader using the information or
advice contained herein.
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CONSTRUCTION MANAGEMENT SERVICES BOOK REVIEWS CONTACT BLOG | CONSTRUCTION MANAGEMENT

INDEX HOME IMPROVEMENT

15 Rules for construction variation claims and change

increased in time by up to 80%.

15 Rules for dealing with construction variations and

(Watch: an introduction to construction variation claims video 8 - when you

Winning Construction Change Orders

Other useful articles

I​ nformation in this article is from the author's

Do you want to learn how to manage construction

Click on picture to view books on Amazon

Copyright 2016 - The attached articles

those of the writer. It should be noted that projects

are varied and different laws and restrictions apply

which depend on the location of the contractor and

the project. It's important that the reader uses the

supplied information taking cognisance of their

particular circumstances. The writer assumes no

responsibility or liability for any loss of any kind

arising from the reader using the information or

advice contained herein.

"I have what I consider some of

Books are available from:

"28 YEARS OF CONSTRUCTION PROJECT

CONSTRUCTION BOOKS CONSTRUCTION SERVICES

Developing Successful Construction Project Managers.

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I nformation in this article is from the author's