VARIATIONS AND CLAIMS IN CONSTRUCTION CONTRACTS

In a construction contract, changes to the originally defined work, conditions and payment can be made as a "variation". Contractors may also claim for additional payment for producing the originally intended finished product under conditions different to that conceived at the time of tender. The greater number and value of the changes to the originally defined work and conditions the less desirable contract work becomes for both parties: owner and contractor. In order to assess the relative significance and effects of variations and claims, objective information was gathered on a number of recent civil engineering contracts within a typical public authority. Direct additional payments for variations and claims totalled almost 10 per cent in the sample of contracts researched. The majority of variations or claims were caused by events which were theoretically preventable, that is, were initiated prior to acceptance of the contractor's tender. Many measures can be taken by the owner to either prevent or control the effects of variations or claims: adequate site investigation; thorough preparation of documentation; realistic tendering requirements; accurate recording of events; awareness and impartiality of superintending staff; and distinction of the real issues in dispute will permit lower overall costs and shorter times for completion in construction contracts. (Author/TRRL) science at the university of New South Wales, 1983.

  • Supplemental Notes:
    • This thesis has been submitted as part requirement for the degree of Master of Engineering Science at the University of New South Wales, 1983.
  • Corporate Authors:

    University of New South Wales

    Gate 9, High Street
    Kensington, New South Wales  Australia  2052
  • Authors:
    • Ahern, B G
  • Publication Date: 1983

Media Info

  • Features: Figures; References; Tables;
  • Pagination: n.p.

Subject/Index Terms

Filing Info

  • Accession Number: 00389302
  • Record Type: Publication
  • Source Agency: ARRB
  • Report/Paper Numbers: Thesis
  • Files: ITRD, TRIS, ATRI
  • Created Date: Oct 30 1984 12:00AM