Getting Paid For Variations

This week’s ‘Wise Up Wednesday’ is about getting paid for variations.

The lack of proper valuation and non-payment of variations is one of the greatest challenges for Specialist Sub-Contractors and it is therefore important to have a clear understanding of the contractual framework governing the instruction, execution and valuation of variations.

At some stage the work is going to change, and these changes will need to be instructed, implemented, measured, valued and paid for.

And although it’s usually the last bit that causes us to get stressed, you can smooth the path to payment by getting all the other elements right.

WHAT IS A VARIATION?

Standard forms of contract and sub-contract tend to define the term ‘variation’ in a similar way.  However, you need to be aware that there are a considerable number of standard forms and many different ways of dealing with variations.

And most importantly Main Contractors own terms, and amendments to standard Forms, will almost always be onerous. So, please take care to ensure that you are familiar with and understand the provisions in each particular contract.

ESSENTIALS

At their most fundamental level, the are two essentials which you should observe when dealing with variation instructions.

  1. Check whether or not the person purporting to have authority to issue variation instructions actually has authority to do so, and
  2. Comply with the particular requirements of the contract in respect to instructions.

It is not uncommon for various parties to assume that they have authority to issue instructions when in fact they have no such authority. Check the terms of the contract and if it is not clear clarify the matter from the outset.

MAXIMISING RECOVERY FROM VARIATIONS

Variations are an opportunity for the Specialist Sub-Contractor to maximise his financial return from the project.

Please remember the old adage “if you don’t ask you don’t get” and in practice variations should be valued by the Specialist Sub-Contractor.

You need to submit details as soon as possible after the variation arises. This will avoid situations where the person commissioning the work has not been properly advised as to the increased value that has arisen because of the changes he has instigated and may have insufficient funds to pay for them.

PUTTING IT ALL TOGETHER – WANT TO KNOW MORE?

You need to know how to put all this together to make sure you get paid, and protect your company’s financial well being.

So, please come  and discover the Secret Keys To Minimise Risk and Maximise Profit (including those from variations), that we have been putting into practice on behalf of Specialist Subcontractors for the last 27 years.

And they’re are being revealed at our March events;

“Understand Your Contract to Minimise Risk and Maximise Profit”

“Introduction To Contractual Awareness and Using JCT Subcontracts”

WHEN/WHERE IS IT? The dates and fast access venues are as follows;

15 March – Oulton HallLeeds close to M1 and M62

22 March – The Nottingham BelfryNottingham close to M1 J26

29 March – The Village HotelCoventry close to M6 and M40

WHAT DOES IT COVER?

We will be unlocking the Secrets To Getting Paid on time every time in a straightforward down to earth easy to follow style using real life examples.

Here’s what your fellow Subcontractors said about our last event;

“Easily digestible information delivered in an interesting and easy to understand format”

“Very detailed and informative”

“Very informative and well delivered”

“We were struggling to get paid; not any longer!”

THE HEADLINES

  • Session 1 – Contract Formation
  • Session 2 – Introduction to JCT Contracts and Construction Act
  • Session 3 – Time, Notices and Delay and Disruption
  • Session 4 – Instructions, Variations and Maximising Return
  • Session 5 – Getting Paid On Time and the Right Amount
  • Session 6 – Resolving Conflicts and Disputes
  • Session 7 – Putting It All Together

WHO SHOULD ATTEND? This is exclusively for Specialist Contractors and is designed specifically to provide a broad appeal for Specialist Contractors staff who work with contracts which includes;

  • Estimators,
  • Contracts Managers;
  • Project Managers;
  • Commercial Managers,
  • Quantity Surveyors,
  • Credit Controllers and
  • Directors

WHAT WILL WE GET OUT OF IT? The Secrets To Getting Paid! Specialist Contractors don’t get paid because they don’t understand the contract or don’t apply it when they should. We will reveal all you need to know to enable you to understand the fundamentals of those subcontracts, and how to get paid.

WHAT DOES IT COST? You can book now for preferential discounts and rates – but be quick to ensure you receive your Early Booking Discount!

Book within the next few days and instead of paying £350, you can pay just £315.00 saving you 10% off the standard price.

Book two or more places and you can pay just £280 each saving you 20% off the standard price.

Special rates apply for our Buddies (members) – please ask Tanya for details.

All rates are subject to VAT 

Booking couldn’t be simpler, just contact Tanya directly on 01773 712116 or tanya@streetwisesubbie.com to confirm your places and she will take care of the rest. She is brilliant!

But hurry our last round of seminars sold out very quickly. We look forward to seeing you there.

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About Barry Ashmore

Qualifications Dip Law Dip Arb FClArb MCMi Year of Birth: 1954 Specialist Contractors Champion! • Chartered Institute of Arbitrators Panel Adjudicator • CEDR Accredited Mediator • Construction Contracts Consultant • M&E Specialist QS An experienced professional with an extensive range of commercial managerial and contractual expertise. Been in the construction industry all my working life. Started as am apprentice electrician at 16, worked my way up, estimator, engineer, contracts manager, general manager. Moved into dispute resolution in 1990! Worked for the biggest and then the best James R Knowles. Now heads up Ashmore Consulting, and most importantly StreetwiseSubbie.com Ltd. Extensive experience working at Director level, project managing, advising and acting on behalf of clients in matters relating to the resolution of disputes by way of negotiation, mediation, adjudication, arbitration and litigation. Straightforward advice given to clients, and wherever possible assisting clients to resolve disputes by negotiation, and avoid formal process. Style; can be as forceful as necessary when advocating, can use mediation skills to create the best possible prospects of a successful deal in an atmosphere of calm, positive determination - either way I'm focused on achieving the best possible solution for you. Barry can be contacted on 01773 715062 or 07815 193718 Email: barry@streetwisesubbie.com Web: streetwisesubbie.com

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