Variation & Claim

Hi Daleep



My phylosophy is that if you expect the worst you are rarely disappointed.



Best regards



Mike T.

Hi Mike,



A "claim" can arise as a consequence of a variation - again depending on the form of contract



Just a matter of interest, do you know what the popular contracts said, eg JCT or Fidic??



Thanks

Thank you Mike.



Glad to have someone who is so knowligible and willing to share his wisdom/knowledge.



Off this thread, I posted a reply stating maybe PP can gather their own list of defination for Contracts and Planning.



In Mike’s reply, maybe the list can list out: JCT 05: defination is ....... & Fidic: is........



so we can all see the different defination among all the popular contracts

Thanks Mike...

Hi Daleep



Read my earlier reply please.



The works are those being carried out on the site.



See the FIDIC definitions at the fornt of the form.



Unless the site stretches from South Africa to China he cant do it.



Best regards



Mike Testro

Hi Skan



If you can find any reference to a difference between "variation" & "Variation" I would like to read it.



Sometimes in arcane legal practice a Capital letter can be subject to a different interpretaion but I have not come across this in relation to a variation.



A "claim" can arise as a consequence of a variation - again depending on the form of contract.



If the valuation rules for a variation do not allow full recovery of the actual costs - for instance extra excavation being carried out in a bad weather period - thus taking longer and costing more - then a formal claim may be required.



In my opinion the words variation and claim are often used to loosely - even to the extent that an interim payment application is regularly called a "Claim for Payment".



Generally a Claim is a request for time and/or money that will not be otherwise recovered by the routine implimentation of the contract.



Best regards



Mike Testro.

Hi all,



"A variation has to be related to the "works" covered by the contract."



I agree with this statement.



Did I read somewhere that there is a differences between "variation" and "Variation"

Can someone threw more light to this?



So Claim is really the consequences of variations then.

Variation to vary either qty or quality so affect the duration of the work, the method of work, the price of the work, the sequence of work & related trades.



Has Relevant Events has anything to do with a claim?

Hi Armando



A variation has to be related to the "works" covered by the contract.



Works are usually defined as that being carried out on site - which includes temporary works off site such as a prefabrication yard or borrow pit etc.



As usual depending upon the what the contract actually says - the client can order any variation to the "works".



He cannot order the contractor to do works Off Site under the same terms as the contract.



Also the client cannot omit any contract works and hand to another contractor to do without prior agreement.



I hope that is clear.



Best regards



Mike Testro.

Guys,



My understanding to the topic is as follows:



Variation:

Change(s) that may alter the contract by additions, deletions, or modifications to the work. This can be initiated by the Project Owner, Architect, Engineer or Contractor.



I would like to ask a question to our friends the following. I know this is simple to our experts but I’m not sure about this: Can a contractor decline or reject an addition variation order which is already beyond the limits of the general scope of the project as awarded even if the client insist?





Claim:

Claim by Contractor - Scope change, errors & omissions, accelerating & expediting, suspension of work and work stoppage, access or availability of site, interference or delay by other contractor(s), delays caused by strikes & Acts of God.



Claim by Project Owner - Failure by the Contractor to complete the project on time, materials not of specifications, defective work and damages, property damage.





Regards,



Arman

Dear all,

Can we contiue our valuable discussion regarding the basics assesement of the claims and variations.

Hi,



Variation is any addetion of ommision to the original contact scope of works.



Variations also if the contract price increased or decreased by more than 15% of the original contract price.



variation may lead to additional cost only, addetional time only or additional cost and time.



the engineer(consultant) has to obtain approval from the employer(client) befor issuing any variation to the contractor.



claims can be cost claim or time claim or time with cost claim.

claims may be due to two main reasons:-

variation.

Delays out side the contractor;s control(the reasons of delays not generated by the contractor it may due to consultant , Employer or other parties)