T016 & T017 Contract Practice & Admin - Variations (T074 Quantification) Rics Apc

Front 1

What are variations?

Back 1

Changes (alterations or modifications) to the design, quality or quantity of the contract works, to the site access or working conditions

Front 2

Why might variations arise?

Back 2

Change to spec etc
Discrepancy between contract documents
Discrepancy with statutory requirements
Errors and omissions
Deficiency in employer’s requirements

Front 3

What form must architects instructions take?

Back 3

They must be in writing

The QS cannot change the contract sum for AIs that are not written

Front 4

Are oral instructions an Architect's Instruction?

Back 4

Contractor has 7 days to write to the architect asking for the AI to be confirmed.

Architect has 7 days to respond, if not it is an AI by default

Front 5

Can the contractor object to a variation?

How soon do they have to comply with an instruction?

Back 5

They can make ‘reasonable’ objections in writing for variations relating to those described in 5.1.2 (working conditions / access / working hours etc)

Else they have to comply forthwith

Front 6

What can the architect do if they don’t comply with an instruction??

Back 6

He can issue a compliance notice

If there is still no action by the contractor within 7 days, employ others to carry out that work and the additional cost charged to the contractor

Front 7

What are the time periods for Schedule 2 quotations?

Back 7

The architect should request one in the AI

The contractor has 7 days to notify that they will not provide one
If not, they have 21 days to provide the quotation

Architect has 7 days writing to accept or reject - called the ‘confirmed acceptance’

Front 8

What costs does the quotation contain?

Back 8

Value of the work
Any adjustment of time
Money in lieu of direct loss and expense
The fair and reasonable cost of preparing the quotation

Front 9

What costs is the contractor entitled to if the quote is rejected?

Back 9

The fair and reasonable cost of preparing the quote, as long as the quote itself was fair

Front 10

What 3 methods are there of obtaining a cost for variations?

Back 10

1) Agreement between the employer and contractor
2) A schedule 2 quotation
3) Valuation by the QS under the valuation rules

Front 11

What are the valuation rules?

Back 11

Three rules for measurable work:
1) Similar character, quantity, conditions as existing, then the bill rates should be used
2) Similar character, but different quantity or conditions, then use bill rates but make a fair allowance for the difference.
3) Not of a similar character, fair rates and prices should be used

Front 12

What is a star rate?

Back 12

A rate that is based on the bill rates but includes a fair allowance

Front 13

What are ‘fair rates and prices’?

Back 13

A market rate, or price based on actual costs, on in line with current cost data e.g. SPONS

Front 14

How would you value non-measurable work?

Back 14

Should be valued by dayworks - the prime (actual) cost of all the materials, labour and plant used in carrying out the work, along with the % additions from the contract

Front 15

What document should the prime cost be calculated in accordance with?

Back 15

Should be calculated in accordance with the ‘Definition of the Prime Cost of daywork carried out under Building Contracts’ published by the RICS

Front 16

What information is necessary to be able to assess dayworks?

Back 16

Vouchers showing the amount of time spent on each activity (dayworks sheets)
Names of the workmen
Plant used
This info. given to the architect for verification at the end of the week following that in which the work was carried out

Front 17

Can the QS alter hours which he considers to be excessive on a dayworks sheet that is authorised by the architect?

Back 17

No

Front 18

What would you do if the contractor submitted 10 dayworks sheets to you for payment?

Back 18

Verify with the architect that a relevant variations has occurred and is on an AI

Ensure there is no other contractual method of valuing the variation

Verify the hours and materials are correct and authorised by the architect

Front 19

If you and the contractor’s QS could not agree on something how would you resolve it?

Back 19

Discuss with partner and client to try and seek a resolution with the contractor

Your valuation stands for the purposes of payment

Try and resolve else adjudicate

Front 20

What is quantum meruit?

Give an example of where it might be used

Back 20

Translates as ‘what he deserves’ i.e. fair and reasonable

If the employer and contractor come to a separate agreement on acceleration, the costs of this may be based on a ‘fair and reasonable’ basis