Significant variations to the scope of works are one of the most common causes of disputes on construction projects.
What starts as a relatively minor change can quickly become additional labour, materials and programme time.
If those changes are not properly identified, agreed and recorded, it can become difficult to establish who is responsible for the resulting costs.
Outlining a clear scope of work
A lot of variations start with something that was unclear from the beginning. If the contract does not clearly establish what the contractor has agreed to deliver, it becomes much harder to deal with additional work when it arises.
The scope should be clear about what is included in the contract and what is not. That means considering things such as design responsibility, exclusions, allowances, provisional sums and any assumptions made when the contract was prepared.
It is also important to consider where different parts of the project overlap. If nobody is quite sure who is responsible for a particular item, it is easy for that work to become a point of dispute later.
Taking the time to identify these issues before work starts can save a lot of time and money further down the line.
A well-defined scope gives everyone a clear understanding of what they have agreed to and provides something to come back to when questions or changes arise during the project.
A clear change order process
Trying to prevent every variation is unrealistic, particularly on larger or more complex projects. What matters is having a clear process for dealing with them.
Your contract should explain how changes are instructed, who can authorise them and how the cost and any impact on the programme will be dealt with.
Where possible, changes should be agreed before the additional work starts.
Sometimes a decision needs to be made quickly. Even then, make sure there is a written record of what was requested and what was agreed.
If there is a dispute, the question is often not simply whether additional work was carried out. It is whether that work was instructed, whether it was a variation and whether the contractor is entitled to additional time or money.
Team monitoring and training
It is important to have people within your team that clearly understand their role and responsibilities.
Site managers and foremen should be aware that any small alterations need to be logged and reported as they happen to help avoid any disputes in the long run.
They must also be aware of how they should respond to any requests for the project to go in any unapproved directions from clients.
Instructing regular reviews of the scope with teams can help identify any changes early, which makes it easier to deal with any variation disputes if they arise months later.
How can we help?
Significant variations on project are not always avoidable. However, it is important that when the scope of a job changes, everybody is aware and it is provisioned for accordingly in contracts.
Our team can help you review the construction contracts, clarify the scope of work and help to put practical steps in place should variations occur.
Getting advice early is key to preventing disputes and keeping the project running smoothly.
Don’t let the scope of work cause into a dispute. Get in touch with our team for support.