Variations in works contracts
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This document discusses variations and deviations that may occur during contract execution. It defines variations as changes to the scope of work, while deviations refer specifically to changes in quantities, items, or conditions from what is specified in the bill of quantities. The reasons for variations and deviations include errors in estimating, design changes, unavailable materials, and client/contractor revisions. Extra items not included in the original bill are also addressed. The document outlines how rates for quantity deviations, extra items, and substituted items are typically determined in the contract or through other agreed methods. Implications like time and cost overruns and potential disputes are also noted.
Variations in works contracts
- 1. CONTRACT CONDITIONS - II: VARIATIONS/DEVIATIONS Dr K M Soni, ADG(Retd.), CPWD, New Delhi
- 2. Variations/Deviations • Variations or Deviations are the changes from the scope of work of a contract resulting during execution of work except duration of the contract. • Mostly, Variations or Deviations are considered the changes from the quantities or items of the bill of quantities (Schedule of quantities) of a contract resulting during execution of work as changes in design, quantity or conditions ultimately lead to affect BOQ/SOQ.
- 3. Variations/Deviations • Variation/Deviation in quantities of items • Extra items • Substituted items
- 4. Deviation in Quantities • These are the deviations or variations from the quantities taken in Bill of Quantities or Schedule of Quantities • These are the items for which rates are available in the contract • The deviations/variations may be +ve or –ve i.e. Quantities may increase or decrease from the quantities available in BOQ/SOQ
- 5. Reasons of Deviations in Quantities • Wrong assessment or mistake during preparation of detailed estimate/BOQ/tender documents • Assessment of quantities without availability of architectural, structural or MEP drawings. • Revision of drawings/design • Revision due to local bye laws or local body agencies • Revision due to non availability of materials at a particular time • Revisions due to client, architect, or engineer and contractor
- 6. Rates of Deviations in Quantities • Rates of such items are available in the contract • Deviations are +ve or –ve • Rates can be based on; • Available in contract for all deviations • Rates available in the contract upto additional quantities as mentioned in the contract (deviation limit, described in percentage) and beyond it, market rates, Schedule rates +/- quoted percentage, Schedule rates or cost plus basis or any other method as mentioned in the contract or agreed upon by the parties.
- 7. Extra or Additional items • Items that are completely new and in addition to the items contained in the contract • These are the items other than those available in BOQ and not covered in the conditions of contract • In some contracts, these are the items which are not available in contract and not taken up in substitution of items available in BOQ
- 8. Reasons of Extra/Additional items • Left or mistake during preparation of detailed estimate/BOQ/tender documents • Specifications not available during preparation of detailed estimate/BOQ • Non availability of architectural, structural or MEP drawings during preparation of detailed estimate/tender document • Revision of drawings/design • Revision due to local bye laws or local body agencies • Revision due to non availability of materials at a particular time • Items not anticipated during preparation of tender documents i.e. Contingent items • Revisions due to client, architect, or engineer and contractor
- 9. Rates of Extra or Additional Items • Market rates • Schedule rates +/- quoted percentage • Schedule rates • Cost plus basis or • Any other method as mentioned in the contract or agreed upon by the parties.
- 10. Substituted item • Items taken up as partial substitution or in lieu of items of work available in the contract • Therefore, the items are basically due to change of specifications during execution from those considered during preparation of detailed estimate/BOQ/tender documents
- 11. Reasons of Substituted items • Specifications/drawings not available during preparation of detailed estimate/BOQ i.e. Non availability of architectural, structural or MEP drawings • Revision of drawings/design/specifications • Revision due to local bye laws or local body agencies • Revision due to non availability of materials or non feasibility of the execution of the item at a particular time • Revisions due to client, architect, or engineer and contractor
- 12. Rates of Substituted Items • Agreement rates increased or decreased by the difference in market rates of item substituted compared to market rates of agreement item • Market rates • Schedule rates +/- quoted percentage • Schedule rates • Cost plus basis or • Any other method as mentioned in the contract or agreed upon by the parties.
- 13. Implications of Variations/ Deviations • Extension of time • Possible justification of regularisation of delay caused by the contractor • Chances of non compatibility of such items with respect to other services • Source of Disputes about the rates, time extension, loss of profit, idle establishment and thus arbitration • Delayed decisions • Non approval of items and rates of variations • Time overrun and cost overrun
- 14. Thanks for attending Dr K M Soni, ADG (Retd.), CPWD, New Delhi Also available on Youtube: KRISHNA MURARI Soni at https://www.youtube.com/channel/UC_pPYxk0jI1ayqA5rO6fBOw