Variations are not automatically a sign that a construction project is badly managed.
Uncontrolled
variations are.
Commercial projects
involve design development, client changes, unforeseen conditions and
coordination between multiple trades.
For developers and
project managers engaging a commercial construction company in Waikato, the
important question is how changes are identified, recorded, priced and
communicated.
A variation should not
become a surprise three months after the work was completed.
How a Commercial
Construction Company Waikato Manages Variations
The variation process
starts with scope.
Before deciding
whether work is a variation, both parties need to understand what was
originally included.
This is why tender
clarifications and exclusions matter.
A five-line scope
description is rarely enough for a complex commercial construction package.
Drawings may show one
requirement.
Specifications may
describe another.
Schedules can contain
additional work.
Structural details may
affect architectural scope.
The contract documents
need to be reviewed together.
Scope Ambiguity
Creates Commercial Disputes
Consider a fire-rated
wall.
The framing and lining
contractor may include the tested wall system.
Does that include:
Framing around large
services penetrations?
Additional support
requested by another trade?
Temporary access
openings?
Reinstatement after
services work?
Fire stopping?
Changes required by
revised services coordination?
The answer depends on
the agreed scope.
The problem occurs
when nobody asks the questions until after work starts.
A competent contractor
should identify obvious ambiguity during tender or preconstruction.
The developer and
project manager should expect that discussion.
Clarity before award
is cheaper than argument after installation.
Record the
Instruction
Commercial
construction sites move quickly.
A project manager
speaks to a site supervisor.
A change is discussed.
The supervisor tells
the crew.
The work is completed.
Later, the quantity
surveyor asks who instructed it.
Nobody has a written
record.
This is an unnecessary
problem.
Verbal
Communication Should Be Followed Up
Site discussions are
necessary.
Nobody wants
construction to stop while a formal letter is written for every minor issue.
However, commercially
significant instructions should be documented.
A simple written
record can identify:
The change.
The date.
The person involved.
The affected area.
The relevant drawing.
Whether work is
proceeding.
The likely cost or
time effect.
The format will depend
on the project's contract and systems.
The principle is
consistent.
Create a record while
the information is current.
Price Variations
Early
A variation completed
in January should not first be priced in April.
The longer the delay,
the harder it becomes to verify cost.
Workers move to other
areas.
Material invoices are
mixed with base scope.
Site staff forget the
exact sequence.
The project team may
also lose the opportunity to consider an alternative.
Early Pricing
Supports Better Decisions
Imagine a proposed
detail change costs an additional $30,000.
If the developer knows
before installation, the design can be reviewed.
There may be a cheaper
option.
The developer may
decide the benefit is worth the cost.
Either decision is
informed.
If the contractor
completes the work and provides the price later, the choice is gone.
Good variation
management gives project managers information before it becomes merely an
invoice approval process.
Savannah
Construction's commercial systems are structured to separate changed work from
base scope where practical.
That improves cost
visibility.
Labour-Based
Variations Need Good Records
Many commercial
variations involve labour.
A changed detail may
require additional framing.
Completed work may
need to be altered.
The crew may be
directed to assist another trade.
Labour costs can be
difficult to reconstruct later.
Good records should
show the workers, hours, dates and activity.
Where required by the
contract, daywork records should be submitted promptly.
Avoid Vague Labour
Claims
“Four carpenters for
three days” is less useful than a clear explanation of what they did.
Project managers need
enough information to assess the claim.
Contractors should
also protect themselves by recording the actual activity.
Transparent
information improves commercial discussions.
It does not mean every
variation will be immediately agreed.
It reduces unnecessary
uncertainty.
Drawing Revisions
Need to Be Connected to Cost
Modern commercial
projects can produce a large number of drawing revisions.
The site team needs to
know what changed.
The commercial team
needs to know whether the change affects scope.
These processes should
be connected.
A revised drawing may
alter:
Wall locations.
Wall heights.
Door openings.
Ceilings.
Materials.
Fire details.
Acoustic details.
Backing requirements.
The revision is not
automatically a variation.
The contractor still
needs to compare the new requirement with the contracted scope.
Revision Clouds Are
Not Commercial Assessments
A drawing revision
cloud shows where a consultant changed information.
It does not tell the
contractor the cost effect.
The construction team
needs to assess the change.
Does completed work
need altering?
Has material already
been ordered?
Does the new detail
take longer?
Does it affect another
area?
Does it change the
programme?
The earlier this
assessment occurs, the more useful it is.
Variation
Management Should Not Become Adversarial
Commercial
construction contracts allocate risk.
Parties will sometimes
disagree.
That is normal.
The process should
still be professional.
The contractor should
explain the basis of the claim.
The project team
should assess it.
Where information is
missing, it should be requested.
Where part of a claim
is agreed, the parties should consider resolving the agreed portion rather than
allowing every issue to remain open.
Long lists of
unresolved variations create uncertainty for everyone.
The developer has
uncertain final cost.
The contractor has
uncertain recovery.
The project team
spends more time reviewing old work.
Good commercial
management closes issues.
Avoiding Variations
Completely Is Not Realistic
A developer should be
cautious of any contractor promising that there will be no variations.
The contractor does
not control every project variable.
A better commitment is
to manage changes clearly.
This includes
identifying scope risk early.
Raising changes
promptly.
Keeping supporting
records.
Pricing work
reasonably.
Communicating
programme impacts.
The developer and
project manager also have a role.
Instructions need to
be clear.
Design information
needs to be issued.
Commercial assessments
need to be progressed.
Variation management
is a project process, not a contractor-only process.
Choosing a
Commercial Construction Company in Waikato
When selecting a
commercial construction company in Waikato, ask how variations are managed.
Who identifies
changes?
Who prices them?
How are site labour
records captured?
How quickly are
variation notices raised?
How are drawing
revisions reviewed?
Savannah Construction
works on commercial carpentry and specialist construction packages where
drawing development and trade coordination can create significant scope
changes.
Our focus is to
improve visibility between site activity and commercial management.
Variations will always
be part of construction.
The objective is to
prevent them becoming uncontrolled cost.
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