What is a change?
What is a variation?
Building contracts generally use the term variation to describe the following types of changes to:
- the type and/or quality of materials to be used;
- the standard of workmanship;
- the quantity of work to be undertaken;
- the named/nominated supplier;
- the specified method of working; or
- the specified timing or sequence of the works.
The JCT Standard Building Contract with Quantities ('SBC/Q' 2016), sets out a detailed definition of the term 'variation' in clause 5.1 as:
‘5.1.1 the alteration or modification of the design, quality, or quantity of the Works including:
'5.1.1.1 the addition, omission or substitution of any work;
'5.1.1.2 the alteration of the kind or standard of any of the materials or goods to be used in the Works;
'5.1.1.3 the removal from the site of any work executed or Site Materials other than work, materials or goods which are not in accordance with this Contract;
'5.1.2 the imposition by the Employer of any obligations or restrictions in regard to the following or any addition to or alteration or omission of any such obligations or restrictions that are so imposed or are imposed by the Contract Bills or the Employer's Requirements in regard to:
'5.1.2.1 access to the site or use of any specific parts of the site;
'5.1.2.2 limitations of working space;
'5.1.2.3 limitations of working hours; or
'5.1.2.4 the execution or completion of the work in any specific order.’
© JCT
Therefore, the term ‘variation’ under clause 5.1 of the JCT SBC/Q 2016 form of contract covers a wide range of changes. Note that changes to working space, working hours or the order in which works are to be carried out (identified in clauses 5.1.2.2, 5.1.2.3 and 5.1.2.4) are only considered to be ‘variations’ if imposed by the employer. If the contractor were to voluntarily make any of these changes then they would not be treated as ‘variations’ under this contract.
Other changes introduced by the contractor without instruction, for example changing the company it uses to carry out subcontract works, would not be deemed a 'variation'.