Case Study - Variations

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One of our recent projects was a residential development, where we were involved in reviewing and validating variations.

One of the variations that occurred on the project was a last-minute change in the design of all the dormers, after they had already been constructed. This meant that the contractor had to amend all the dormers according to the new design.

This was a clear variation, and it just needed to be priced and submitted to the project QS for approval. However, the contractor’s management team did not have enough experience and expertise in pricing variations. They had prepared an estimate of the extra work and were ready to submit it to the project QS for approval.

Fortunately, they decided to consult us before doing so. They asked us to review their pricing and check if it was accurate and reasonable. We agreed to help them and conducted a thorough analysis of the variation.

We re-measured all the changes and provided a detailed breakdown of the costs (including abortive work) with substantiating information. We also compared the original and revised drawings and specifications to identify the scope and extent of the variation. We used our professional judgment and industry standards to calculate the fair and reasonable rates for the extra work.

As a result, we found that the contractor’s management team had significantly under priced the variation. They had missed some important items and had not accounted for all the implications of the change. They had also used low rates that did not reflect the market conditions and the complexity of the work.

We revised their pricing and increased the value of the variation by over 200%. We presented our findings and recommendations to them and explained how we had arrived at our figures. They were convinced by our work and agreed to submit our pricing to the project QS for approval.

We managed to secure over £20,000 more for the variation by correcting the pricing, despite the project QS’s initial reluctance. They eventually conceded that the variation cost much more than what they had paid “on account”. 

This saved the contractor from losing money that they probably would have never recovered. We also ensured that the variation was properly documented and approved, which avoided any disputes or claims later on. We demonstrated our professionalism and expertise in cost management and quantity surveying, and we delivered value for our client.