ABSTRACT

Chapter 6 considers how the parties manage change to the technical requirements during the project, which is an extremely common occurrence. Most offshore construction contracts will contain a variation clause of some description that will attempt to govern what changes can be introduced, how and the impact on the existing project cost and schedule. The chapter discusses how these clauses work in practice, including the hurdles which either party has to overcome before a change can be introduced. It looks at the limitations of what changes can be introduced in terms of nature, extent and timing of such changes, all of which are factors in whether the change will be introduced smoothly. It also addresses what happens when one party fails to follow the procedure, either inadvertently or deliberately.