Valuations - Case Study

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 One of our recent projects was a residential development, where we were responsible for conducting interim valuations on the site.

During one of our site valuation visits, we noticed something unusual. The site team was removing a large amount of insulation from the underside of the lower ground floor ceiling. This was not part of the original scope of work, and it could have a significant impact on the cost of the project.

We decided to investigate further and asked the site manager why they were doing this. The site manager said that the architect had visited the site and instructed them to remove the insulation. However, there was no written record of this instruction, and the drawings did not show any change in the specification of the ceiling.

We suspected that this was a case of verbal variation, where the architect had made an oral request for a change in the work without following the proper procedure. We knew that this could lead to disputes and claims later on, and we wanted to avoid any potential loss for our client.

We quickly contacted the project QS and informed them of the situation. We explained that removing the insulation was not part of the contract, and that it would require additional labour and materials to reinstate it.

We prepared a variation order for the extra work and submitted it to the project QS for approval. The variation order included a detailed breakdown of the costs of removing and reinstating the insulation, as well as supporting evidence from our site visit. The project QS agreed with our assessment that it was a valid variation and approved additional costs in the valuation.

By doing this, we prevented a potential £8k loss on the work that had not been priced. We also ensured that the work was done in accordance with the contract and that there was no risk of disputes or claims later on. We demonstrated our professionalism and expertise in cost management and quantity surveying, and we delivered value for our client.