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Variations after Practical Completion
September 2006
Dear Jennifer
We are a plumbing firm working under a subcontract with the Builder for a residential development.
The Builder has asked me to carry out a significant variation after we have achieved practical completion.
I don’t mind doing the work but the Builder is insisting that I should do these extras at the contract rates which I am not happy about.
I have to remobilise and I can’t get the material required at the same price as before.
It will be uneconomic for me to do it.
Can I refuse or negotiate a higher price for the work?
Regards Bob
Yes, you can refuse!
Most standard form contracts and subcontracts e.g. AS 2124 and AS 2545 make no specific provision for "post contract variations". The sub-contractor should take the initiative by proposing a revised percentage for dayworks and/or agreement by prior quoatation of la ump sum, where possible. There is usually no reason why these post completion variations should be based on the original contract rates. It is a matter for agreement between the parties.
The sub-contractor should be careful not to go ahead with significant variations issued after practical completion, until he has secured agreement to the method and level of pricing.
Jennifer
Regards Bob
Yes, you can refuse!
Most standard form contracts and subcontracts e.g. AS 2124 and AS 2545 make no specific provision for "post contract variations". The sub-contractor should take the initiative by proposing a revised percentage for dayworks and/or agreement by prior quoatation of la ump sum, where possible. There is usually no reason why these post completion variations should be based on the original contract rates. It is a matter for agreement between the parties.
The sub-contractor should be careful not to go ahead with significant variations issued after practical completion, until he has secured agreement to the method and level of pricing.
Jennifer
Dear Bob
Dear Bob
Can I refuse or negotiate a higher price for the work?
Regards Bob
Yes, you can refuse!
Most standard form contracts and subcontracts e.g. AS 2124 and AS 2545 make no specific provision for "post contract variations". The sub-contractor should take the initiative by proposing a revised percentage for dayworks and/or agreement by prior quoatation of la ump sum, where possible. There is usually no reason why these post completion variations should be based on the original contract rates. It is a matter for agreement between the parties.
The sub-contractor should be careful not to go ahead with significant variations issued after practical completion, until he has secured agreement to the method and level of pricing.
Jennifer
Dear Bob
Regards Bob
Dear Bob
Yes, you can refuse!
Most standard form contracts and subcontracts e.g. AS 2124 and AS 2545 make no specific provision for "post contract variations". The sub-contractor should take the initiative by proposing a revised percentage for dayworks and/or agreement by prior quoatation of la ump sum, where possible. There is usually no reason why these post completion variations should be based on the original contract rates. It is a matter for agreement between the parties.
The sub-contractor should be careful not to go ahead with significant variations issued after practical completion, until he has secured agreement to the method and level of pricing.
Jennifer