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Variations and construction cost control
Budgets are rarely lost in one decision. They are lost in forty small changes nobody priced. I price each change before it is built and report every month where the project will finish.
By Edwin, quantity surveyor, registered with IQSK. 10 years in practice. Fixed fee agreed in writing.
What counts as a variation
Any change to what the contract says will be built: a bigger window, a different tile, an extra room, deeper foundations because the ground was not what the drawings assumed. Some are your choice, some are forced by the site. All of them change the cost, and under most contracts they must be instructed in writing.
Price first, then build
When a change comes up I price it from the contract rates where the work is similar, and from a built-up rate where it is new. You see the cost and any effect on the completion date before you approve it. If the figure is too high you can change your mind while that is still free.
The alternative is the usual one: the change is made on a verbal instruction, and its price is argued about at the end, when the work is covered up and the contractor's figure is the only record.
The monthly cost report
- The contract sum
- Variations approved, with their value
- Variations pending, with an estimate
- Provisional sums and how much of each has been spent
- Contingency remaining
- The forecast final cost and the difference from your budget
One page, every month. If the forecast moves, the report says which item moved it.
Public projects
On public contracts the Public Procurement and Asset Disposal Act, 2015 limits how far a contract can be varied, and a variation has to be justified, priced and approved before it is carried out. I prepare the variation order with its measurement, rates and justification so the approval file is complete when it reaches the accounting officer.
Questions clients ask
Can a contractor refuse to price a variation in advance?
Most contracts require the contractor to carry out an instructed variation and set out how it is valued. Agreeing the price first is good practice and most contractors prefer it, because it means they are paid for the change without argument.
What if the ground conditions are worse than expected?
That is the commonest forced variation. The extra work is measured as it is done, before it is covered, and valued at contract rates. The contingency in the budget exists for this.
Do you report in a format my bank accepts?
Yes. Tell me who the lender is and the report will follow their layout.
Get a fixed-fee quote
Send your drawings for variations and cost control. You get a written scope, a fixed fee and a delivery date within two working days. No charge and no obligation for the quote.