Is it easy managing 200 Variations without a Single Dispute? And what processes are necessary for this?
We were tasked with administering a large manor house refurbishment through 56 weeks on site with an Extension of Time claim, all under a JCT 2011 Intermediate Building Contract
Manor House Refurbishment, JCT 2011 Intermediate Contract
A contractor appointed Oxford Surveying Services to provide quantity surveying support for the refurbishment of a large manor house, which included new flooring, a balcony, rendering, internal decoration and an extension to the integral garage. The project ran under a JCT 2011 Intermediate Building Contract, with a 12.5% margin on the Schedule of Works and an original order value of £272,473 against the 20-week programme.
The contractor had limited experience of JCT administration and relied on us throughout including being site, attending progress meetings, and through to completion. As the client introduced changes to the scope, including drawing alterations and an extended garage, we assisted with the Extension of Time claim, completed monthly valuations, and priced over 200 variations, each agreed and issued with Architect’s Instructions.
By completion, the final account stood at £623,500. This is an increase of £351,027 of fully priced and agreed variations – none were disputed. The programme extended from 20 to 56 weeks, and the margin rose from 12.5% to 14.5%, a profit on cost of £90,407.
The OSS Role
- Administered the contract under JCT 2011 Intermediate Building Contract terms
- Assisted with an Extension of Time claim as the programme extended from 20 to 56 weeks on site
- Carried out regular site visits and interim valuations for the duration of the project
- Priced over 200 variations arising from client changes; each agreed and issued with Architect’s Instructions
- Support given to the contractor at both site, progress meetings and to the final delivery
Why This Matters
A JCT contract puts a formal structure around change, but that structure only protects a project if someone is actively administering it. Left unmanaged, variations accumulate and Extension of Time claims go unsubstantiated, regardless of how well the works themselves are delivered.
Active contract administration delivered the best outcome. First, the dedicated QS priced and agreed each variation as it arose. In addition, the QS completed monthly valuations instead of reconstructing them retrospectively. Finally, the QS supported the Extension of Time claim with the necessary evidence.As a result, a dedicated QS turned more than 200 variations and a 36-week extension into a fully accounted-for final account, increasing the margin rather than eroding it.
the numbers
| Original works order: | £272,473 |
| Final account: | £623,500 |
| Increase in order value: | £351,027 |
| Original programme: | 20 weeks |
| Final programme: | 56 weeks on site |
| Margin: | increased from 12.5% to 14.5% (£90,407.50 profit on cost) |
For every £1 spent with Oxford Surveying Services, £9.80 came back as additional secured value, on top of the increase in margin achieved across the project.
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