Variations and additional works are the most common reason for budget overruns and disagreements between the parties on a construction project. They are not a sign of failure, because something changes on almost every project. What matters is how those changes are managed.
Additional works and variations
Additional works are works that are not part of the agreed contract and are added to it. A variation changes the content, quality or scope of work that has already been agreed. In both cases the contract price, and often the schedule, change as well.
A third category consists of works that the contractor considers additional but the client considers part of the contract. These differences in interpretation cause most disputes, and the answer lies in the contract and the contract documents.
Why do changes happen?
- the designs are incomplete or contradictory
- existing structures differ from the information provided
- the client changes its requirements during the project
- the authorities require additional measures
- interfaces between contracts have been defined unclearly
Give notice early and in writing
The Finnish general conditions for building contracts (YSE) and the international FIDIC conditions share the same principle: a change must be notified in writing before the work begins. Under FIDIC contracts, notices are tied to strict time limits, and a late notice can mean losing the entitlement altogether.
Rule of thumb
If a change has only been agreed verbally, in practice it has not been agreed at all. Record every change, its cause, its price and its effect on the schedule before the work is carried out.
Value the change before it is carried out
The best moment to agree the price is before the work starts, while both parties still have room to negotiate. Valuation can be based on the contract's unit rates, a separate quotation or daywork. For the client, daywork carries the most risk, so its use should be limited and the hours checked regularly.
Record everything
The site diary, meeting minutes, photographs and emails are decisive evidence when parties disagree. Thorough records protect both sides and speed up a settlement. For delays, it is essential to record which event caused the delay and when.
The same principle for clients and contractors
For the client, good change management means a predictable budget and a justification for every additional cost. For the contractor, it means getting paid for the additional work it carries out. In both roles success depends on the same things: clear procedures, timely notices and careful records.
We help clients, main contractors and subcontractors manage variations on both YSE and FIDIC projects. Get in touch and we will go through your situation.