ABSTRACT
This chapter examines the contract provisions of the chosen contracts over variations and considers how they are to be implemented financially in their own right. A drastic ‘all-in-one’ change, such as the inclusion of a fourth block of flats in a contract for three blocks, or turning a contract for a factory into one for sheltered housing would certainly constitute ‘variation’ in the grand sense. The rules given require the incorporation into the contract of a schedule of percentage rates related to one or more standard definitions of daywork. Daywork is chargeable at current market rates, that is adjusted for fluctuations in market costs, with the addition of the percentage appropriate to the category of cost. The contractor may be conceding a change in prices in the subcontract, while it is not made in the main contract but absorbed by the wider compensating adjustments.
