Page 228 - Civil Engineering Project Management, Fourth Edition

Civil Engineering Project Management
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In some international contracts, any review of rates or prices is restricted
to changes in individual quantities exceeding a given percentage. If it were
intended that all changes in quantity justified a different rate, then the rates
would largely become irrelevant. In practice therefore rates are seldom altered
for what might be termed ‘natural’ variation of quantities. Most variations that
are large enough to require re-consideration of rates stem from an instruction
issued by the engineer or resident engineer and this is a different matter dealt
with in Section 17.4. Occasionally an item gets missed from a bill, which the
contract or method of measurement provides should have been measured.
Rates for these must also be set by the engineer in the same manner, but with-
out there being any instructed change.
17.3 Ordered variations

Many types of contract allow the engineer to order variations but, as mentioned
in Section 8.4 his powers to do so are usually restricted to changes that are
necessary or desirable for completion of the works, including any changes
requested by the employer. By this means the employer, through the engineer,
can obtain the result he wishes if his ideas and desires have altered since he
awarded the contract. But if the employer wishes to introduce an entirely new
piece of works or otherwise alter the basis of the contract, he can do this only by
agreement with the contractor. The intention is that the works as contracted
will still be built, that is, the same concept or result will be achieved but the
detail may alter. This is essential, since the contract gives the contractor the duty
and the right to carry out the contract works, and the contract will maintain
those rights even if the works are varied.
The resident engineer may sometimes receive a request from an employee of
the employer to make some addition. He should refer the request to the engineer
who will need to consider whether the employer would agree to his employee’s
request, and whether it is within the engineer’s power to instruct the contractor
to make such addition. Obviously in matters of choice or no great cost the resi-
dent engineer will assent to reasonable requests, such as colour schemes for fin-
ishes. But sometimes during the finishing stages of a construction, the request
may be for something expensive or which could delay completion, and it is then
necessary to be sure the employer agrees with the request of his employee.
When ordering variations the ICE conditions set out the procedure to be
followed. All such variations have to be ordered in writing, or if given orally,
must be confirmed in writing. The ICE conditions require the contractor to under-
take such ordered variations and, in general, they are to be paid for at bill rates
or rates based on them. In some instances this may seem harsh on the contractor,
since he may be doing work somewhat different from what he expected, and
the rates so applied may seem to him too low. But the reverse can also happen,
and some of the varied work may leave the contractor with a welcome extra
profit, if the relevant rates happen to be set high at tender.