Chapter 11

Instructions & Variations

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 Instructions (AI)
1. Written Instructions
• Clause2(3)
Architect’s instructions must be confirmed in writing
->If not, MC does not need to comply
• Clause 2(1)
Architect’s written instructions

MC must comply

->If MC doesn’t comply with the instruction within 7 working days

- Employer can employ & pay other persons to carry out the work
(recoverable from MC / deducted from monies due to the MC under the contract)

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 Instructions (AI)
2. Oral Instructions
• Clause2(3)
Allow the architect to give oral instructions
-min. delay in the time taken to written & deliver a written instruction
-MC should get the instruction in writing
if no record, MC runs the risk of losing payment / cannot recall items
- instructions given on site, should be written on site record book by MC & signed by architect

• Normal Procedure, MC to write to the architect within 7 days confirming the instruction
-if architect doesn’t dissent in writing within 7 days of receiving the MC confirmation, then the instruction will take effect

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 Instructions (AI)
3. Clerk of Works Directions
• The clerk of works acts only as an inspector on behalf of the employer under the direction of the architect
- if any instructions are given by clerk of work / architect’s representative
->no effect unless confirmed in written by architect within 2 working days
->if confirmed -> architect instruction
• In practice, clerk of works will usually be treated as architect’s instructions

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 Variations

• Most building contracts are entire contracts.

• Standard forms of building contract commonly introduce a variations clause
• Employer have the right to require variation
• Clause 11(2)
-addition, omission/substitution of any work
-alteration of kind or standard of any of the materials/goods to be used in
the works

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 Variations

Measurement & Valuation of Variation

• QS duty
• Part of the final account
• Main contractor is to be presented with a copy of priced bills of variation
before the issue of the final certificate
-if MC is dissatisfied with QS’s variation, MC can take the matter to the
architect who must review the valuation

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 Variations

Measurement & Valuation of Variation

Rules for Valuing Variations
(a) Similar character in similar condition -> use prices in the contract bills (pro-rata rates)

(b) Dissimilar character / dissimilar condition

-> use prices in the contract bills (pro-rata rates) / make a fair valuation

(c) Work that cannot be properly measured or valued -> use dayworks

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 Variations

Dayworks Basis
-> rates for labour must be those offered by MC in the contract bills

->if the MC didn’t include daywork rates in the contract bills then the rates will be those
given in the current Standard Day Labour Schedules & current Plant
Hire Schedules

-> Materials provided specifically for the variation work will be valued at its actual cost plus
the cost of packing, carriage & delivery with an additional of 15% for overheads & profit

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 Variations

Measurement & Valuation of Variation

(d) If omissions required by the architect significantly vary the conditions of
carrying out the remaining items of work, the prices for such remaining items
will be valued under rule (b)

(e)If required by the architect, the MC shall within 14 days of the architect’s
written request, submit a detailed estimate of value of the variation

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 Variations

Pro-rate Rates
• Derivation
• Analogy
• Reconciliation of analysis

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 Variations

Pro-rate Rates
• Derivation
From 2 or more similar unit rates in the contract bills, e.g.

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 Variations

Pro-rate Rates
• Analogy

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 Variations

Fair Valuation
• Estimate of the cost including overheads & profit
- Build up a unit rate from basic principles
- Obtain prices from building price books
-Extract unit rates from BQ on jobs of similar nature

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 Provisional Sums

• A sum of money for costs that cannot be entirely foreseen, defined or

detailed at tendering
• Adjustments by replacing with actual expenses

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 Prime Cost Sums

• A sum of money for costs that cannot be entirely foreseen, defined or

detailed at tendering
• Adjustments by replacing with actual expenses

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Thank you

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