ABSTRACT
The contract sum is entered in Article 2. This is seldom the amount which the project will ultimately cost, and the wording of the contract recognises this by the qualifying reference ‘or such other sum as becomes payable’. The contract figure sometimes contains provisional sums to cover the cost of work that cannot be accurately described or measured at the time of tendering. Also, almost all jobs will entail some variations as work proceeds; MW16 provides for dealing with the cost of such variations, for the ‘direct loss and/or expense’ due to any resulting disruption, and for costs and expenses due to suspension. Arithmetical errors by the contractor in pricing are not allowed as a cause for adjustment. Prolongation costs, such as on-site overheads, would normally only be claimable for variations that result in an extension of time. The case Alfred McAlpine v Property and Land Contractors is presented to highlight this point.
