Example structure for a final account
Rules for the valuation of variations
There are slight variations between contracts, but by reference to the JCT Suite of contracts, the following are the specified options:
- The architect/contract administrator may request the contractor to provide a lump sum quote for a variation if that is considered in the best interests of the scheme or is for work upon which there is no basis for negotiation. This lump sum quote is deemed to cover for all extra costs including any preliminaries and loss and/or expense. This is a Schedule 2 quotation.
- Where additional work is the same or very similar to that within the tender document, then the rate within the tender shall be so applied to the varied works.
- Where additional work is the same or similar to that within the tender, but the circumstance of execution is dissimilar for example out of normal sequence working, then the rate within the tender shall be applied with an uplift or lump sum extra to reflect the cost of the varied circumstance.
- If the varied work is totally dissimilar to any existing work, then the quantity surveyor or contract administrator shall make a fair valuation of the works.
- If the work relates to an approximate quantity, then the same rates as in item B) and C) above are applied.
- If the work is of such a nature or needs to be undertaken in a piecemeal fashion or is out of sequence or the like, the work shall be valued using Daywork rates.
Clause 5 of the JCT suite of contracts provides the full details of the valuation rates and further reading of the contract rates is recommended.
Revised drawing account
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Omit |
Add |
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£ |
£ |
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AI No. 5 - Issue of Revised Drawings |
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i) |
Current drawing 001 Rev B New drawing 001 Rev C Revised drawing amends the plastered blockwork entrance walls to fair face brickwork as attached re-measurement. |
4,850.00 |
7,300.00 |
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ii) |
Current drawing 011 Rev D New drawing 011 Rev E Revised drawing amends the hardwood window boards to MDF as attached re-measure. |
8,315.00 |
2,655.00 |
|
iii) |
Current Drawing E7/13F New Drawing E7/13G Revised structural engineers drawing changes the structure of the roof top plant room from steel framed to lightweight timber framed, as attached re-measure of entire structure. |
28,200.00 |
18,750.00 |
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iv) |
New Drawing E7/15 This new drawing introduces galvanised steel goal posts to large window openings at each stair landing as new measure. |
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7,327.00 |
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v) |
Current drawing LSA/ 22 New drawing LSA/ 22A Revised landscape architects drawing now amends the galvanised steel balustrading to the café terrace to stainless steel with horizontal wires. Omit as BQ ref 3/12a-c Add as quote from sub-contractor +10% oh+p |
14,500.00
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21,300.00 |
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55,865.00 |
57,332.00 |
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(55,865.00) |
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TOTAL ADD TO FINAL ACCOUNT MAIN SUMMARY |
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1,467.00 |
Table 5: Revised drawing account
The illustration provided is by necessity quite simplistic and we have not actually provided the re-measures associated with varied works. It is clearly incumbent upon the quantity surveyor/contract administrator to prepared detailed 'measures' of the omissions from the original tender document and the new measurement of the works as now required.
It is important to ensure that all drawings are evaluated and for the purposes of this example, we have shown how site conditions and re-appraisals can require completely new works. In this example we have measured and valued the new steel goal posts that the structural engineers have found it necessary to introduce after the contract was entered into.
The re-measurement of any works must be undertaken in accordance with the rules under which the original tender documents were produced. The New Rules of Measurement came into force on 1 January 2013 and should be used going forward.
Dealing with variations to variations
Once work is varied, the original works have been replaced by the new/varied works. Therefore, it is essential that such variations are clearly documented so that if varied works are subsequently varied, the correct omission is made i.e. the VARIED works are omitted and replaced by the new variation.
It is necessary to be very clear and ordered with the compilation of the revised drawing account. This is essential because on large and complex projects, the extent of change and number of drawings can be significant in number and value.