Bk Australia Variations Aug13

8/21/2019 Bk Australia Variations Aug13

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Construction Australia

Variations A comprehensive overview

August 2013


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For further information, please contact

Geoffrey Wood

Partner

Baker & McKenzie

Level 27, AMP Centre

50 Bridge Street

Sydney NSW 2000

A!tralia

"irect# $% 2 '(22 52)

*el# $% 2 (225 0200

+a# $% 2 (225 5(5

ge-..rey/--d1aker3ckenzie/c-3

/aker3ckenzie/c-3

Jennifer Fitzalan

Seni-r A!!-ciate

Baker & McKenzie

Level 27, AMP Centre

50 Bridge Street

Sydney NSW 2000

A!tralia

"irect# $% 2 '(22 5724

*el# $% 2 (225 0200

+a# $% 2 (225 5(5

enni.er/.itzalan1aker3ckenzie/c-3

/aker3ckenzie/c-3


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Table of contents

1. Introduction 3

1.1 General 3

2. Scope of works 4

2.1 General 4

2.2 Work not expressl in!l"#e# 5

2.3 $n!onsisten!ies in s!ope o% &ork provisions 6

2.4 'ills o% ("antities an# s!ope or &orks 8

3. Variation powers 8

3.1 )ee# %or variation !la"se 8

3.2 *xpress po&er +

3.3 *xpress po&er , te role o% te S"perinten#ent 11

4. Limits on power to direct variations 12

4.1 General 12

4.2 i/in 12

4.3 ontra!t"al an# oter li/its on &at !onstit"tes a variation 14

4.4 General po&er 15

4.5 "/"lative e%%e!t o% /"ltiple variations 1

4.6 /ittin Work 1

4. /ittin &ork to ive to anoter !ontra!tor 1+

4.8 !!eleration 20

4.+ Dire!tin a variation %or te p"rpose o% !orre!tin #e%e!ts 21

. !ricin" or valuin" variations 22

5.1 ontra!t provisions 22

5.2 ter al"ation !onsi#erations 23

5.2.1 ates an# 7ri!es in!l"#e# in te ontra!t 23

5.2.2 easonale rates or pri!es 26

5.2.3 Da &orks 2

5.2.4 al"ation "n#er te !ontra!t a%ter per%or/an!e o% te variation 28

5.3

Disp"tes rear#in val"in variations 28

#. $ela%s and variations 3&

6.1 General o//ents 30

6.2 Will te variation !a"se #ela9 31

6.3 al"ation o% variation an# te in!l"sion :or oter&ise; o% #ela !osts 31

6.4 Dela an# #isr"ption !ost o% variations as part o% a loal !lai/ 34

6.5 S"se


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'. Is it or isn(t it a variation) 3'

.1 $ntro#"!tion 3

.2 $/possile or i/pra!ti!ale #esin 3

.3 =atent !on#itions 38

.4 ane in S!e#"le o% ates ontra!t 38

.4.1 'ills o% ("antities ?variations? 38

.4.2 S!e#"le o% ates ?variations? 41

.5 ontra!tor provi#es *xtra or 'etter ("alit Work 42

.6 e S"perinten#ent #ire!ts Work as a ariation &i! is part o% teriinal S!ope o% Work 42

. @nintentional variations 43

..1 Dire!tion to ane te ontra!tor?s Meto# o% Workin 43

..2 S"stit"tes an# options in te spe!i%i!ation 45

..3 ssentin to a onta!tor?s proposal 48

..4 *xtra &ork o"tsi#e te !ontra!t - "nA"st enri!/ent an#%r"stration 4+

.8 ariations an# *stoppel 53

8. *ormal re+uirements of variation clauses 4

8.1 Wat are te9 54

8.2 Bail"re to !o/pl &it pro!e#"ral oliations 56

8.3 Wat onstit"tes C&ritinC9 5+

8.3.1 Dra&in 5+

8.3.2 Sinae 5+

8.3.3 7a/ent erti%i!ates 60 8.3.4 =etters an# Min"tes o% Site Meetin 60

8.4 e!over in te asen!e o% &ritin 60

8.4.1 $/plie# pro/ise to pa 60

8.4.2 Separate ontra!t 61

8.4.3 Binal !erti%i!ates 62

8.4.4 Waiver 62

8.4.5 *stoppel 63

8.4.6 S"se


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1. Introduction

1.1 eneral

e p"rpose o% tis paper is to !onsi#er so/e o% te /an iss"es involvin variations

tat !an arise in te !o"rse o% !ontra!t a#/inistration. etter "n#erstan#in o% toseiss"es so"l# lea# to a /ore e%%i!ient sste/ o% !ontra!t a#/inistration an# are#"!tion in #isp"tes.

e ter/ ?variation? in te !ontext o% !onstr"!tion !ontra!ts !an /ean t&o tinsna/elE

:a; a ?variation? or !ane to te !ontra!t ter/sF an#

:; te narro&er an# &ell kno&n /eanin tat is a psi!al ?variation? or !aneto te &ork :


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2. Scope of works

2.1 eneral

Wen te ontra!tor !ontra!ts &it te 7rin!ipal to !arr o"t !onstr"!tion &orks te7rin!ipal is entitle# to te per%or/an!e o% tose &orks in te /anner an# to te extent

pres!rie# te !ontra!t. Si/ilarl te ontra!tor is entitle# to te !ontra!t s"/ inte /anner an# as /a e a#A"ste# te !ontra!t. e !ontra!t allo!ates risksin!l"#in te !ost o% per%or/an!e o% tat &ork. Di%%erent !ontra!ts allo!ate tose risks#i%%erentl. Ho&ever in te stan#ar# %or/ !onstr"!tion !ontra!ts te oriinal !ontra!ts"/ is "s"all %ixe# in relation to an oriinal s!ope o% &ork.

s a variation is a !ane to te &ork :


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/S 4&&&

la"se 2 an# 1 provi#eE

e ontra!tor sall !arr o"t an# !o/plete W@ in a!!or#an!e &it te ontra!t an##ire!tions a"torise# te ontra!t.

CW@C /eans te &ork &i! te ontra!tor is or /a e re


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$n Waler v Council of t!e Municipality of "andwic 6 te o"rt el# tat &orks!o/prisin te !onstr"!tion o% a !on!rete retainin &all in a spe!i%ie# positionne!essaril re


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is !la"se ives %lexiilit to te S"perinten#ent :!o/pare# to !la"ses stip"latin anor#er o% pre!e#en!e; as te are not !onstraine# avin to %ollo& an or#er o%pre!e#en!e.

0!

=ike S 4000 !la"se 8.1 re


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:%; te express /ention o% one tin &ill e rea# as /eanin te ex!l"sion o%anoterF13

:; an# &ritten or espe!iall a##e# !la"ses &ill take pre!e#en!e over testan#ar# %or/F14

:; !rosse# o"t &or#s /a e !onsi#ere#F15

an#

:i; &ere tere is a list %ollo&e# eneral &or#s ten te eneral &or#s &ill erestri!te# re%eren!e to te sa/e !lass o% tins previo"sl /entione#.16

)ot&itstan#in provisions in !ontra!ts settin o"t te pro!e#"re to e %ollo&e# in!ase o% an in!onsisten! an# te aove note# !o//on la& r"les or prin!iples#isp"tes /a still arise over te parti!"lar interpretation o% a provision espe!ialliven tat sini%i!ant s"/s o% /one /a e at stake. Bor exa/ple in / #awins *(ons &ty Ltd v (abemo &ty Ltd 1 a #isp"te arose over te /eanin o% !on#ition 3 in aletter )' oint &orkin 7art )o Disp"teE 7aper 1 N isk llo!ation :1++0; 14 "stralian onstr"!tion la& )e&sletter 8.1+ $i# at 11.


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poor or ina#e


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ontra!t provisions "s"all #e%ine ?variation? &i#el to ive te S"perinten#ent%lexiilit as to &at te ontra!tor /a e #ire!te# to per%or/.

/S 4&&&

@n#er !la"se 36.1 o% S 4000 :!onstr"!t onl; te S"perinten#ent /a var te

W@ :&ork "n#er te !ontra!t; an one or /ore o% te %ollo&inE

:a; in!rease #e!rease or o/it an partF

:; !ane te !ara!ter or


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#ire!tin te ontra!tor to per%or/ te &ork. e presen!e o% an Coter !ontra!tor?!la"se in te !ontra!t &as a part o% te o"rt?s reasonin pro!ess.

$7 ontracts

Wit respe!t to D, ontra!ts !are%"l !onsi#eration so"l# e iven to te variation

provisions. Bor exa/ple as te ontra!tor is responsile %or te #esin :an#tere%ore liale i% te #esin is not in a!!or#an!e &it te ontra!tor?s !ontra!t"aloliations; te ontra!tor so"l# ave te ailit to "nilaterall var te #esin.Wereas te 7rin!ipal?s po&er to var te #esin so"l# e li/ite#.

Bro/ te ontra!tor?s perspe!tive it /a e appropriate to a/en# stan#ar# %or/variation !la"ses &i! ive te S"perinten#ent :an# or te 7rin!ipal; te po&er toinstr"!t variations an# !o/pellin te ontra!tor to !o/pl &it s"! instr"!tions.S"! a/en#/ents /a re


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+"edfern Mail %3c!ange Case30 te o"rt /a %in# tat te S"perinten#ent in so/eo% its roles is to a!t in te /anner expressl provi#e# %or in S 4000 or S 2124.@n#er tose !ontra!ts it /a not e ?%air? or ?reasonale? to #ire!t te ontra!tor toper%or/ a parti!"lar variation or it /a not e ?%air? or ?reasonale? on te 7rin!ipal tatte ontra!tor per%or/ te parti!"lar variation. $n s"! instan!es te S"perinten#ent&ill %in# itsel% in a #i%%i!"lt sit"ation.

e S"perinten#ent "n#er 7-1 &o"l# not %a!e s"! a !on%li!t as "n#er !la"se 3.1 o%tat !ontra!t te ontra!t #/inistrator :S"perinten#ent; is to exer!ise all its%"n!tions as aent o% te &ner an# not as an in#epen#ent !erti%ier assessor orval"er.

Ho&ever even &ere !ontra!ts in!l"#e !lear provisions #ealin &it te entitle/ento% te 7rin!ipal :an# te S"perinten#ent; to #ire!t an# val"e variations an# &ito"t anexpress provision re


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!o/pletion. $n )*W )amieson Constructions Ltd v C!ristc!urc! City 36 :Jamieson;te o"rt !on%ir/e# tat te entitle/ent in te eneral !on#itions o% !ontra!t %or te r!ite!t to #ire!t te ontra!tor to per%or/ a variation #i# not re/ain in %or!e a%terte !erti%i!ate o% pra!ti!al !o/pletion a# een iss"e#. ook el#E3

Wen tat point is rea!e# :!erti%i!ate o% pra!ti!al !o/pletion as een iss"e#; &it all te

!onse


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la"se 40.1 o% )7W provi#es tat te S"perinten#ent /a or#er te ontra!tor toper%or/ a variation Cat an ti/e #"rin te proress o% te &ork "n#er te ontra!tC.CWork "n#er te ontra!tC is #e%ine# to /ean te &ork &i! te ontra!tor is or /ae re


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4.4 eneral power

"e C!ittic and .aylor, 40 a ana#ian !ase ives so/e "i#elines in !onsi#erin&eter an ite/ or &ork is or is not a variation or extra. ose "i#elines are as%ollo&sE

:a; an ite/ spe!i%i!all provi#e# %or in te !ontra!t &as not an extraF

:; i% te ontra!tor s"pplie# /aterial o% a etter


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$n Wegan Constructions &ty Ltd v Wodonga (ewerage 'ut!ority,46 te "toritentere# into tree s!e#"le o% rates !ontra!ts &it Wean onstr"!tions %or te!onstr"!tion o% se&ers in a #evelop/ent. e iss"e !on!erne# te tir# !ontra!t&i! &as to !onstr"!t 1+ /anoles &it 22 lents o% pipin totallin 840 /etres.e !ontra!t !ontaine# a provision &i! state# tat C)o variation sall vitiate orinvali#ate te !ontra!tC.

e &ork "n#er te %irst t&o !ontra!ts &as slo& #"e to #elas eon# te !ontrol o%te ontra!tor. e "torit #ire!te# te ontra!tor to var te &ork in!reasinte ex!avation re


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!onsent to #o it "n#er te !ontra!t. n te parti!"lar %a!ts o% tis !ase it &as !lear tatte plainti%% &as not areein to #o te &ork as a task !overe# an# to e pai# %or"n#er te !ontra!t ter/s.

4. umulative effect of multiple variations

e !"/"lative e%%e!t o% a lare n"/er o% variations /a !a"se a %"n#a/ental

!ane to te &orks eon# te li/its o% te po&er to #ire!t variations. $n )* W)amieson Construction Ltd v C!ristc!urc! City Council 4+ te ontra!tor ar"e# tatte n"/er an# nat"re o% te variations #ire!te# &ere o% s"! an extent to e &ollin!o/patile &it te !ontra!t. "sti!e ook el#E50

$n #eter/inin &eter a variation /a e #ire!te# or not te %irst


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$n / opinion a %"n#a/ental alteration s"! as tis &as is not &itin te !la"se. n alteration&i! &oll !anes te !ara!ter o% te &ork is not an o/ission.

C!adma3 &lastics &ty Ltd v #ansen * 4uncen +(' &ty Ltd 53 &as a !ase in &i!tere &as a Hea# ontra!t %or an eit stor "il#in %or so/e .8 /illion #ollars&i! provi#e# a s!e#"le o% %inises in!l"#in te appli!ation o% C&all%lexC in a s/all

area. e Hea# ontra!tor entere# into a s"!ontra!t &it a s"!ontra!tor to s"pplan# appl &all%lex. variation &as #ire!te# "n#er te ea# !onta!t &ere te&all%lex &as to e repla!e# &it a s/oot plaster an# paint %inis. e ea#!ontra!tor so"t to pass #o&n tis variation to te s"!ontra!tor o/ittin all&all%lex &ork %ro/ its s!ope o% &ork. is a# te e%%e!t o% #eletin all "t 1.26 per!ent o% te &ork tat te S"!ontra!tor &as to per%or/.

$t &as s"/itte# on eal% o% te ea# !ontra!tor tat as te tir# part tro" te r!ite!t a# te po&er "n#er te ea# !ontra!t to /ake variations to te oriinal&orks o% s"! a nat"re as to re


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rep"#iation o% te s"!ontra!t even i% te variation re


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#esine# to #eal &it tat event"alitF instea# te o//issioner a#opte# a


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4.9 $irectin" a variation for t-e purpose of correctin" defects

Most o% te stan#ar# %or/ !ontra!ts ive te S"perinten#ent te po&er to #ire!t avariation in respe!t o% #e%e!tive &ork.

/S 2412

la"se 30.3 provi#es tat &it #e%e!tive &ork te S"perinten#ent /a #ire!t teontra!tor to re/ove /aterial #e/olis te &ork re!onstr"!t repla!e or !orre!t te/aterial or &ork or not to #eliver te /aterial or &ork to te site. la"se 30.3 in!onA"n!tion &it !la"se 40 :?ariations? &i! provi#es tat te S"perinten#ent /a#ire!t a variation to te Works; /eans tat in all likelioo# te S"perinten#ent /avar te &ork to e per%or/e# to re!ti% te #e%e!t as ten re


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. !ricin" or valuin" variations

.1 ontract provisions

Most stan#ar# %or/ an# espoke !ontra!ts !ontain provisions settin o"t o&variations are to e val"e#. e %ollo&in are so/e exa/ples o% s"! !la"ses.

/S 2124

la"se 40.3 re


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:i; a!!or#in to an a/o"nt #eter/ine# te S"perinten#ent "sin anrates or pri!es &i! appear in te !ost s!e#"le or ill o%


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:; T-e +uantit% of work performed

ontra!tors /a ar"e tat an in!rease# a/o"nt o% &ork intro#"!es ele/entso% #i%%i!"lt or !ost &i! are not taken into a!!o"nt te s!e#"le rate or illpri!e so"t to e applie#. is is a #i%%i!"lt ar"/ent to s"stain as /ost ratesor pri!es are inten#e# to appl to te &ork not&itstan#in te a/o"nt o% tat

ite/ &i! is re


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$n relation to &eter te s!e#"le o% rates pri!es so"l# e "se# te7rin!ipal &en "sin its sole #is!retion "sti!e n#erson sai#E

ere is no expli!it re


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Were te variation is a !ane %ro/ &ork %or &i! pri!es or rates ave een ivena#A"st/ent %a!torin an# extrapolation te!ni


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D"n!an Walla!e in Construction Contracts; &rinciples and &olicies of .ort andContract 6 &rote te %ollo&in rear#in %ollo&in or a/en#in


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@n#er #a&ork rates tere is no in!entive %or te ontra!tor to "n#ertake te &orke%%i!ientl an# !o/plete


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:a; e pri!e# ill o%


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e ontra!tor ar"e# tat te pri!es in te pri!e# ill o%


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:!; n appropriate extension o% ti/e !la"se /eets te prole/ o% a ontra!tor#ire!te# to #o extra &ork &ilst #a/aes %or late !o/pletion are r"nninaainst i/.

ll tat is reor ot-erwise? of dela% costs

is iss"e /"st e !onsi#ere# not onl in te !ontext o% te variation val"ationprovisions "t in te !ontext o% te !ontra!t as a &ole in!l"#in te extension o%ti/e provisions an# an #ela !osts provisions.

/S 4&&&

ariations "n#er S 4000 are to e pri!e# "n#er !la"se 36.4. at !la"se provi#estat ea! variation &ill e pri!e# a!!or#in to an or#er o% pre!e#en!e o% ite/s &i!

4 $i#.


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#o not expressl /ention ti/e relate# or #ela !osts :re%er to Se!tion 5.1 %or a list o%tose ite/s;.

Ho&ever "n#er !la"se 36.2 :7ropose# variation; te S"perinten#ent ma% #ire!t teontra!tor is to provi#e #etails o% an ti/e relate# !osts in respe!t to a propose#variation. Given tat te S"perinten#ent as a #is!retion as to &eter or not it &ill

#ire!t te ontra!tor to provi#e s"! in%or/ation s"! in%or/ation /a not aveeen provi#e# &en a variation is val"e# "n#er !la"se 36.4. $t is tere%ore "n!lear i%te S"perinten#ent is to !onsi#er ti/e relate# !osts &en val"in a variation "n#ertese !la"ses.

@n#er !la"se 3+.4 :#ela #a/aes; ever #a te s"Ae!t o% a !o/pensale !a"se:&i! in!l"#es an a!t o% te S"perinten#ent in!l"#in #ire!tin te ontra!tor toper%or/ a variation; te ontra!tor !an !lai/ #ela #a/aes p"rs"ant to !la"se 41.1:o//"ni!ation o% !lai/s;. e ontra!tor /a tere%ore !lai/ ti/e relate##a/aes :&i! /a e roa#er tan !osts; in respe!t o% a variation "n#er tis!la"se.

e #i%%i!"lt %or te S"perinten#ent is to ens"re tat te ontra!tor as not #o"le#ippe# !lai/in ti/e relate# !osts ot "n#er !la"se 36.4 an# 3+.4.

0!

la"se 40.1 o% )7W provi#es tat variations sall e val"e# in a!!or#an!e &itla"se 40. 2 as %ollo&sE

variation sall e val"e# in a!!or#an!e &it te rates in!l"#e# in te 7ri!e# 'ill o% ("antitiesor S!e#"le o% ates or in a s!e#"le o% pri!es i% an# in so %ar as te S"perinten#ent#eter/ines tat tose rates are appli!ale to te variation. Wen te S"perinten#ent#eter/ines tat Jtose ratesK #o not appl to a variation te rate or pri!e paale %or tevariation sall e #eter/ine# aree/ent et&een te ontra!tor an# te S"perinten#ent "ti% te ontra!tor an# te S"perinten#ent %ail to aree on te rate or pri!e te S"perinten#ent

sall #eter/ine s"! rate or pri!e as e !onsi#ers reasonale or e /a #ire!t tat te variationsall e !arrie# o"t as Da&ork.

la"se 40.1 #oes not #ire!tl re%er to #ela or ti/e relate# !osts.

e %ollo&in !ases ave !on!erne# &eter or not a parti!"lar !la"se enales teS"perinten#ent to !onsi#er #ela or ti/e relate# !osts &en val"in a variation. es"Ae!t !la"ses &ere si/ilar to !la"se 40.1 o% )7W.

e Hi o"rt o% "stralia in .uta &roducts &ty Limited v #utc!erson Bros &tyLimited 5 !onsi#ere# a variations !la"se in te %ollo&in ter/s &i! did not expressl in!l"#e #ela !osts in te val"ation pro!e#"reE

)o variation sall vitiate te !ontra!t "t "nless a pri!e tere%or sall ave previo"sl eenaree# all variations a"torise# or san!tione# te r!ite!t sall e val"e# an# te s"/involve# sall e a##e# to or #e#"!te# %ro/ te !ontra!t s"/ as te !ase /a e.

$n as!ertainin s"! val"e /eas"re/ents an# assess/ents sall e /a#e an# s"pplie# te'"il#er to te r!ite!t. $% te r!ite!t is not satis%ie# tere&it e /a /ake /eas"re/entsi/sel% or !a"se s"! /eas"re/ents to e /a#e a ("antit S"rveor an# sall s"ppl tesa/e to te '"il#er an# an %ees to e pai# %or an s"! /eas"re/ents sall e a##e# to teontra!t S"/. e val"ation o% s"! variations "nless previo"sl or oter&ise aree# sall e/a#e as %ar as possile in a!!or#an!e &it te %ollo&in r"lesE

:a; e pri!e# 'ill o% ("antities or i% no s"! 'ill o% ("antities as een provi#e#appropriate !"rrent rates sall #eter/ine te val"e o% an variation to &i! s"! rates/a reasonal appl.

5 :1+2; 12 = 253.


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:; Were tere are no appropriate !"rrent rates a %air val"ation o% te variation a!!or#into te /eas"re/ents a#opte# te r!ite!t sall e /a#e.

:!; $% in te opinion o% te r!ite!t te val"ation o% te variations !annot e as!ertaine# eiter o% te aove /eto#s te '"il#er "pon noti%i!ation to tat e%%e!t sall pro!ee#&it te Works an# sall present in s"! %or/ as te r!ite!t /a #ire!t a !orre!tre!or# o% te !ost o% te variations toeter &it evi#en!e s"pportin te sa/e. e

'"il#er sall not e entitle# to an #is!o"nt on /aterials oter tan #is!o"nt %or pro/ptpa/ent.

n ?!erti%i!ate iss"e# to te '"il#er te r!ite!t p"rs"ant to tis !la"se sall in!l"#ereasonale allo&an!e %or overea# an# pro%it.

e !la"se &as !onstr"e# as ein !on!erne# &it val"ation te /eas"re/ent o%tanile tins an# not appropriate to a !lai/ %or !o/pensation %or loss or expense#"e to #ela.

si/ilar approa! &as taken 'ra in .aylor Woodrow 1nternational Ltd vMinister of #ealt!6 ao"t val"ation provisions in anoter a/en#e# *5 %or/ o%"il#in !ontra!t. His Hono"r state#E

$n / vie& tese provisions are "tterl inappropriate %or te assess/ent o% loss or expensearisin %ro/ #ela &i! /it not ne!essitate an a##itional &ork at all or antin &i!!o"l# e /eas"re# or val"e# re%eren!e to te spe!i%i!ations.C

e%errin to la"se 24 :te Closs or expenseC !la"se; e sai#E

$ rea# !la"se 24:i;:v; as in#i!atin tat tere are so/e !lai/s %or loss or expense &i! so"l#e in!l"#e# in te val"e o% a variation an# tere%ore in%erentiall tat tere are so/e &i!so"l# notI

$t is ar"ale tat la"se 40.2 o% )7W &ile not expresse# in i#enti!al ter/s ise


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:CSettle/ent o% Disp"tesC; &i! /a ten e s"/itte# to te S"perinten#ent %or#e!ision "n#er !la"se 45:a;.

ere is an ele/ent o% illoi!alit in tis pro!ess %or i% te ontra!tor is #issatis%ie#&it te !la"se 45:a; #e!ision te S"perinten#ent te /atter is ten s"/itte# tote 7rin!ipal %or #e!ision "n#er !la"se 45:; even to" it is te initial #e!ision

te 7rin!ipal "n#er !la"se 35.4 &i! ives rise to te C #isp"te or #i%%eren!eC &i! isto e resolve# te pro!e#"res "n#er !la"se 45.

/S 2124

@n#er !la"se 40 o% S 2124 te S"perinten#ent /a #ire!t variations. la"se 40.5:%;provi#esE

$% te val"ation relates to a##itional !osts in!"rre# te ontra!tor %or #ela or #isr"ption teval"ation sall in!l"#e a reasonale a/o"nt %or overea#s "t sall not in!l"#e pro%it or loss o%pro%it.

$n .uta &roducts &ty Limited v #utc!erson Bros &ty Limited + te r!ite!t &as

#ire!te# te relevant !la"se to in!l"#e an allo&an!e in te val"ation o% variations%or overea# an# pro%it. Stepen interestinl in lit o% te &or#in o% !la"se40.2:; S 2124-1+86 rear#e# tis &or#in asE80

inappropriate in te !ase o% a !lai/ %or !o/pensation %or loss or expense #"e to #ela "tentirel appropriate &en te


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tat per%or/an!e o% variations ave een te !a"se o% s"! !osts. "sti!e 'rnes inrear# to tis sai#E81

a"sation is so"t to e in%erre# rater tan prove#.

e ontra!tor /"st prove tat no event %or &i! it &as !ontra!t"all responsile

!a"se# an o% te !osts in!"rre#. !!or#inl it !an e #e#"!e# tat te !a"ses o%te ontra!tor?s !osts /"st ave een te responsiilit o% te 7rin!ipal. eprin!iples rear#in s"! loal !lai/s ave een estalise# a n"/er o% !ases.Were it &as not possile to #eter/ine te !a"ses o% ea! loss ten it is leiti/ate%or a !o"rt to /ake a ?loal? a&ar#.82

$n ) Crosby * (ons Ltd v &ortland 6rban District Council,83 Donal#son el# tat&ere te ontra!tor a# een #elae# a series o% events %or &i! te 7rin!ipal&as responsile :e late possession o% te site s"spension o% &ork an# variations;&i! res"lte# in in!rease# site overea# expenses an# loss o% pro#"!tivit o% plantan# lao"r ten an aritrator /a /ake in#ivi#"al a&ar#s in respe!t o% tose parts o%in#ivi#"al ite/s o% te !lai/ &i! !an e #ealt &it in isolation an# a s"pple/entar

a&ar# in respe!t o% te re/ain#er o% te !lai/s as a !o/posite &ole.Ho&ever in tat !ase te "#e #i# not a!!ept te a!!epte# stan#ar# ar"/ent tatte aritrator /"st arrive at te l"/p s"/ a&ar# %irst as!ertainin te in#ivi#"ala/o"nts e %in#s #"e "n#er ea! ea# o% !lai/ e!a"se te extent o% te extra !ost!lai/e# #epen#e# "pon Can e3tremely comple3 interaction between t!econse5uences of t!e various events, and it may be difficult or even impossible tomae an accurate apportionment of t!e total cost between t!e several causativeevents7C Ho&ever tere /"st e no #"pli!ation an# i% tere is an ea# o% !lai/ inte ro"p &i! #oes not per/it pro%it tat is onl allo&s Cextra !ost or expenseC teCloalC a&ar# /"st ex!l"#e pro%it.

#. Subse+uent claims for dela% due to multiple variations

%ten te ontra!tor /a not realise te extra !ost ele/ent o% te #ela an##isr"ption i/pa!t o% /"ltiple variations. s variations are #ire!te# #"rin te proresso% te &ork te ontra!tor /a s"/it its !lai/s an# te S"perinten#ent /a#eter/ine te val"ation %or te in#ivi#"al variations ase# "pon te rates in te!ontra!t. e ontra!tor /a also !lai/ an# otain an extension o% ti/e. $t is onla%ter te &ork is !o/plete# tat te #ela i/pa!t o% variations overall /a e#eter/ine#.

Di%%i!"lt iss"es arise !on!ernin te asis o% te oriinal val"ations an# &eter teval"ation in!l"#e# an ele/ent o% #ela !ost an# &eter an# on &at asis te later!lai/ !an e /a#e an# val"e#.

e ontra!tor /a also %a!e a pro!e#"ral #e%en!e tat te !lai/ as een /a#ee%ore an# ti/e perio#s %or p"rs"in te !lai/ ave not een /et.84

#.# /utomatic entitlement to 6T if variation preformed after t-e date for practicalcompletion)

onsi#er te sit"ation &ere te Date %or 7ra!ti!al o/pletion "n#er te !ontra!t aspasse# an# te ontra!tor is still trin to !o/plete. e ontra!tor is late li


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#a/aes are ?r"nnin?. e 7rin!ipal or te S"perinten#ent &ises to #ire!t avariation. e variation &ill %"rter #ela te ontra!tor.

an te ontra!tor /aintain tat it is entitle# a"to/ati!all to an extension o% ti/e9

$n Commissioners for (tate Ban Victoria v Costain 'ustralia Ltd 85 a #ire!tion to

per%or/ a variation &as iven a%ter &at &o"l# ave een te #ate %or pra!ti!al!o/pletion "t &itin te ti/e iven to te ontra!tor to !o/plete te &orks as ares"lt o% an earlier extension o% ti/e avin een rante#. e ontra!tor !arrie# o"ttis variation &ork e%ore te oter et to e !o/plete# &ork &itin te "nvarie#s!ope o% &ork. e ontra!tor s"/itte# tat te per%or/an!e o% variation &ork a%terte #ate o% pra!ti!al !o/pletion /"st !a"se #ela as no !ontra!t"al ti/e &as le%t to!o/plete te &ork.

e o"rt el# tat "n#er te !ontra!t tere &as no a"to/ati! entitle/ent to anextension o% ti/e %or variations ase# si/pl "pon te point o% ti/e at &i! tevariation #ire!tion &as iss"e# an# tat an entitle/ent onl arose i% te variation &ork#elae# te proress o% te &orks. Goo %"rter oserve#E

B"rter te rantin o% an extension &o"l# al/ost invarial still %in# te '"il#er #oin te extra&ork not in !ontra!t ti/e. "s &ere an extra tat !o"l# rea#il e !al!"late# to take one #ato !o/plete is or#ere# an# attra!ts an extension o% one #a it #oes not /ean tat tis extra is!arrie# o"t in !ontra!t ti/e %or te one #a is a##e# to a #ate %or pra!ti!al !o/pletion tat /ae /an /onts a!k.

Goo revie&e# te a"torities an# %o"n# tat none estalise# tat "pon or#erinan ite/ o% extra &ork tere &as eiter an extension o% ti/e %or ea! ite/ or i% anextension &as not rante# ten li


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See Se!tion 8 %or %"rter #is!"ssion rear#in !on#itions pre!e#ent to !lai/in %or avariation.

'. Is it or isn(t it a variation)

'.1 Introduction

e ontra!tor enerall "n#ertakes to !o/plete te &ork "n#er te !ontra!t. $noter &or#s te ontra!tor "n#ertakes to !onstr"!t te &orks as #es!rie#. Watrisks te ontra!tor ass"/es in respe!t o% tis oliation ovio"sl &ill #epen# "ponte ter/s o% te !ontra!t.

e %ollo&in #is!"ssion !onsi#ers sit"ations &ere te ontra!tor /"st ass"/e terisk :asent a provision provi#in oter&ise; an# is "nale to rel on te variation!la"se to !lai/ an !o/pensation %or en!o"nterin te parti!"lar risk.

'.2 Impossible or impracticable desi"n

e ontra!tor /a en!o"nter #i%%i!"lties in atte/ptin to !arr o"t te &orks in te/anner re


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e o"rt el# tat a 7rin!ipal #oes not pro/ise tat !o/pletion a!!or#in to te!ontra!t"al plans an# spe!i%i!ation is pra!ti!al or even possile an# a!!or#inl teontra!tor &as not entitle# to te !o/pensation !lai/e#.

'.3 Latent conditions

e risk o% en!o"nterin latent or "n%oreseen !on#itions is a risk o% !onstr"!tion orne te ontra!tor :asent an express provision in te !ontra!t &i! statesoter&ise;. is is a risk &i! /a event"ate &ito"t an !ane to te oriinal&orks or alternativel it /a event"ate as a res"lt o% or %lo&in on %ro/ a variationo% te &orks. e ontra!tor tere%ore !annot rel on a variation !la"se to !lai/!o/pensation %or en!o"nterin a#verse "nexpe!te# site !on#itions

e %ollo&in !ases ill"strate tis point.

$n "e an 'rbitration between Carr and t!e (!ire of Wodonga,88 te ontra!tor aree#to "il# a ri#e %or te 7rin!ipal %or a l"/p s"/. e ontra!tor &as to satis%i/sel% !o/pletel as to te site an# ever !ir!"/stan!e !onne!te# &it te &ork an#provi#e %or all !ontinen!ies.

e ontra!tor a# to sink /etal !lin#ers an# %ill te/ &it !on!rete. 7lansatta!e# to te spe!i%i!ation so&e# te 7rin!ipal a# s"nk ore oles in severalpla!es alon te line o% te propose# ri#e "t not exa!tl &ere te !lin#ers &ereto e s"nk.

Wen sinkin te !lin#ers te ontra!tor en!o"ntere# "n%oreseen osta!les in te%or/ o% lare los "rie# in te river all o% &i! in!rease# te !ost o% &ork 50R.

e ontra!tor !lai/e# rei/"rse/ent o% te extra !ost "n#er te CvariationsC !la"seas !ost o% extras or a##itions to te &ork.

e o"rt el# te !lai/ %or rei/"rse/ent %aile# asEere ein an "n!on#itional "n#ertakin to sink te !lin#ers an# no !o"ntervailin pro/ise...on te part o% te o"n!il te &ork in respe!t o% &i! te !lai/s are /a#e !annot e eiterextras #eviations or alterations &itin te /eanin o% te !ontra!t.

'.4 -an"e in +uantities in a ,ill of 5uantities@Sc-edule of ;ates ontract

'.4.1 ,ills of 5uantities (variations(

e


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3+

n te oter an# i% te ill o% or in te spe!i%i!ation are inten#e# toive onl a eneral in#i!ation o% te &orks. onstr"!tion #ra&ins an#>or #etails iss"e#p"rs"ant to te !ontra!t /a ive levels an#>or #i/ensions #i%%erin s"stantiall %ro/ tose

+1 :1+04; H"#son?s '. . :4t e#; 368.+2 J1+3K 2 )SW= 186.


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iven in te "n#er /entione# #ra&ins an#>or spe!i%i!ation. $t is e/pasise# tat te !ontra!t!overs te !arrin o"t o% te &orks so&n on te !onstr"!tion #ra&ins an# #etails.

e !ontra!t pri!e tere%ore &as to e !al!"late# /"ltiplin te actual not teesti/ate#


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part o% te !ontra!t;. la"se 2.4 ten provi#es tat te ill o%


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42

'. ontractor provides 6tra or ,etter 5ualit% ork

$% a ontra!tor #oes extra or etter


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'.' Anintentional variations

'.'.1 $irection to -an"e t-e ontractor(s Bet-od of orkin"

Weter te S"perinten#ent as te po&er to #ire!t te ontra!tor as to an part o%te ontra!tor?s /eto# o% &orkin tat is its /eto# o% a!ievin te %inal res"lt o%

te per/anent &ork &ill !learl #epen# "pon te ter/s o% te !ontra!t.

$% te po&er is not iven to te S"perinten#ent in te !ontra!t te ontra!tor !aninore an #ire!tion %ro/ te S"perinten#ent to a#opt an parti!"lar /eto# o%&orkin.103 $% te ontra!tor neverteless !o/plies not&itstan#in teS"perinten#ent?s la!k o% po&er is te ontra!tor entitle# to !o/pensation9

$% te !ontra!t #oes ive te S"perinten#ent s"! a po&er te


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e S"perinten#ent prevente# it %ro/ so #oin an# is re


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$n 4ors!ire Water 'ut!ority v (ir 'lfred Mc'lpine * (on +0ort!ern Ltd,106 teontra!tor s"/itte# a &ork C/eto# state/entC &i! &as !alle# %or te !ontra!tan# &i! &as %o"n# te o"rt to ave een in!orporate# in te !ontra!t#o!"/ents re%eren!e in te %or/al instr"/ent o% aree/ent. n iss"e arose as to&eter te ontra!tor &as entitle# to a variation %or avin to !ane its se


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Ho&ever te *nineer !onsi#ere# tat te alternate !la #i# not !o/pl &it tespe!i%i!ation an# #ire!te# te ontra!tor to "se te !la %ro/ te no/inate# propertsain it &as te onl !la &i! &o"l# /eet te spe!i%i!ation.

e ontra!tor /aintaine# te spe!i%i!ation ave i/ an option an# tat te #ire!tiono% te *nineer &as a #ire!tion to !arr o"t extra &ork. Ho&ever te *nineer

re%"se# to ive a &ritten #ire!tion to te ontra!tor.

e ontra!tor aree# to !o/pl an# !arrie# o"t te &ork. n te !o/pletion o% te&ork te ontra!tor re%erre# te /atter to aritration.

e aritrator el# te ontra!tor &as !orre!t an# a&ar#e# !o/pensation as i% a&ritten variation #ire!tion a# een iven. e Ho"se o% =or#s re%"se# to inter%ere&it te a&ar#.

$n (tate "ail 'ut!ority of 0(W v Baulderstone #ornibroo &ty Ltd,108 'a"l#erstoneHornirook :'H; entere# into a l"/p s"/ !ontra!t &it te State ail "torit :S;to !onstr"!t !ertain roa# &orks. e eneral !on#itions o% !ontra!t &ere in te %or/o% )7W 3 :1+81;. e !ontra!t pri!e &as a l"/p s"/ o% O3460000. e !ontra!t#o!"/ents in!l"#e# as %ollo&sE

S!e#"le o% /o"nts

e ten#erer sall !o/plete te s!e#"le insertin its o&n esti/ate#


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4

3.0 6mbankment onstruction

:a; *xtent o% Work

*/ank/ent !onstr"!tion sall in!l"#e te treat/ent an# !o/pa!tion o% 3/aterials in te areas "pon &i! e/ank/ents are to e pla!e# pla!in an#!o/pa!tin te sele!te# /aterial laer in !"ttins an# e/ank/ents te

pla!in an# !o/pa!tin o% approve# /aterial &itin areas %ro/ &i!"ns"itale /aterial as een re/ove# an# te pla!in an# !o/pa!tin o%e/ank/ent /aterial in te oles pits an# #epressions &itin te %o"n#ationarea.

:e; 7la!in Billin in */ank/ents

e /aterial %or e/ank/ents sall e obtained from t-e cuttin"s wit-int-e work= ecept w-en borrow or imported fill is aut-orised b% t-eSuperintendent.

:n; $/porte# Bill

Were i/porte# %ill is ree? made it clear t-at embankment fill was tocome from cuttin"s wit-in t-e work or from borrow or imported fill w-en


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eit-er borrow or imported fill was aut-orised b% t-e Superintendent.ere &as a sortae o% /aterial. Material a# to !o/e %ro/ eiter orro& or%ro/ i/porte# %ill. e S"perinten#ent #e!line# to per/it orro&e# %ill.ere%ore %ill a# to e i/porte#.

lto" te S!e#"le o% /o"nts /a#e provision %or te pricin" of borrow

to fill it /a#e no provision %or i/porte# %ill. Spe!i%i!ation clause 1.4 spe!i%ie#a lo!ation &ere i/porte# %ill i% it &as to e Ca"torise# te S"perinten#entC&itin !la"se 3.0:e; /it e otaine#. Ho&ever it #i# not state &eter tei/portation o% s"! %ill %ro/ tat or an oter so"r!e &as &itin te !ontra!ts"/.

e S!e#"le o% /o"nts totallin te l"/p s"/ !ontra!t pri!e /a#e it !leartat te !ontra!t &as on te asis tat 6300 !"i! /etres &as to !o/e %ro/Ccut to fillC an# 24500 !"i! /etres to !o/e %ro/ Cborrow to fillC. $% te Swanted imported fill %or eneral e/ank/ent !onstr"!tion to e part o% tel"/p s"/ pri!e te S!e#"le o% /o"nts so"l# ave !ontaine# provisionsin#i!atin te


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%aile# an# it appeare# tat te piles &o"l# not e ale to s"pport te re


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n i/plie# !ontra!t /a e prove# in vario"s &as. Wen a /an #oes &ork %or anoter &ito"tan express !ontra!t relatin to te /atter an i/plie# !ontra!t arises to pa %or it at its %airval"e. S"! an i/pli!ation o% !o"rse arises %ro/ an express re


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:A; )eiter part %oresa& te likelioo# or possiilit o% restri!tions ein i/pose#on te o"rs o% &ork.

:k; e inA"n!tions rante# aainst o#el%aE

:i; prevente# te ontra!tor &orkin !ontin"o"sl %or 6 #as per &eekF

:ii; !a"se# #ela to te &orks exposin te ontra!tor to li


54/71

52

ver provisions o% !1.S.6 itsel% #ealin &it te !onstr"!tion prora//e provi#e a linket&een te !ontra!t an# te ante!e#ent #is!"ssions so as to enale "s s"Ae!t to a!onsi#eration o% spe!i%i! provisions in te spe!i%i!ations to sa tat te !ontra!t!onte/plate# tat !o/pletion &o"l# e a!ieve# &itin te ti/e stip"late# te/eto# o% &ork alrea# /entione# it ein ass"/e# tat it !o"l# not e #ist"re# te rant o% an inA"n!tion.

:%; !la"se allo&in %or extensions o% ti/e %or #elas Co&in to !a"ses eon#te !ontrol or &ito"t te %a"lt or nelien!e o% te ontra!torC &as el# not toe inten#e# to appl to te rant o% an inA"n!tion to restrain a n"isan!eF s"!#ela Cs!ar!el ans&ers tis #es!ription11C. e parties a# not in!l"#intis !la"se !onte/plate# te s"pervenin event &i! a# o!!"rre#.

:; Spe!i%i! provision &as /a#e %or noise poll"tion an# n"isan!e an# it &as!onte/plate# tat tere /it e C restri!tions on te &orkin o"rs o% plant ors"! oter /eas"res as approve# te *nineerC. e o"rt !onsi#ere#&eter tis &as an express !onte/plation te parties o% te events &i!in %a!t o!!"rre# as %ollo&sE118

Do tese provisions s"pport te vie& tat o#el%a &as "n#ertakin in an event toper%or/ te !ontra!t &ork even to" te /eto# !onte/plate# te parties /itprove to e "nla&%"l or i/possile reason o% its a/o"ntin to a n"isan!e an# itsein restraine# inA"n!tion. $ #o not tink tat !l.S.8:2; as s"! a &i#e-ranine%%e!t. $t involves no s"tra!tion %ro/ te lan"ae o% te provisions to sa tat it is


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'rne in Brenner v First 'rtists$ Management &ty Ltd 121 also ave "i#an!e o&&ork o"tsi#e a !ontra!t so"l# e val"e# as %ollo&sE

:a; te %"n#a/ental ar#sti!k is &at is a %air an# reasonale re/"neration or!o/pensation %or te ene%it a!!epte#F122

:; rear#s so"l# e to te pri!e pai# a# te ene%its een !on%erre# "n#er anor/al !o//er!ial arrane/entF123

:!; te en


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la"se 6 provi#e#E12+

:a; e '"il#er sall !o/pl &it an# ive all noti!es re


57/71

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/S 4&&&

la"se 36.1 provi#es tat te ontra!tor sall not var W@ ex!ept as #ire!te# in&ritin.

la"se 20 provi#es tat ex!ept &ere te ontra!t oter&ise provi#es te

S"perinten#ent /a ive a #ire!tion orall "t sall as soon as pra!ti!ale !on%ir/ itin &ritin.

!!or#inl iven !la"se 36.1 a variation #ire!tion /"st e iven in &ritin.

/S 2124

la"se 40.1 provi#es a/on oter tins tatE

e ontra!tor sall not var te &ork "n#er te ontra!t ex!ept as #ire!te# teS"perinten#ent "n#er la"se 30.3 30.4 or 40.1 or approve# in &ritin te S"perinten#ent"n#er la"se 40.1.

la"se 23 provi#es a/on oter tinsE

*x!ept &ere te ontra!t oter&ise provi#es a #ire!tion /a e iven orall "t teS"perinten#ent sall as soon as pra!ti!ale !on%ir/ it in &ritin.

$% te ontra!tor in &ritin re


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is is %"rter enan!e# !la"se 16.1 &i! provi#es tat i% te ontra!tor!onsi#ers a #ire!tion to !onstit"te a variation :oter tan a ?ariation r#er? "n#er!la"se 11.2; it /"st ive noti!e in &ritin to tat e%%e!t.

8.2 *ailure to compl% wit- procedural obli"ations

!la"se /a on its proper !onstr"!tion /ake te otainin o% a &ritten #ire!tion toper%or/ &ork a !on#ition pre!e#ent to te ontra!tor?s rit to pa/ent "n#er te!la"se. $% so as a eneral r"le te ontra!tor &ill not e entitle# to re!over pa/ent"n#er te variation !la"se &ito"t a &ritten #ire!tion o% te S"perinten#ent.131

n earl !ase :o%ten relie# "pon as a"torit %or te proposition tat tere !an e nore!over in te asen!e o% &ritin; is .!e .!arsis (ulp!ur and Copper Company vMc%lroy * (ons132 :Tharsis;. la"ses in te !ontra!t provi#e#E

:a; is Jvarin te &ork "n#er te !ontra!tK sall onl e #one "n#er a &rittenor#er %ro/ te !o/pan?s *nineer IIF an#

:; e ontra!tors sall not at teir o&n an# or &ito"t a &ritten or#er %ro/ te

!o/pan?s *nineer e entitle# to /ake an s"! alterations or a##itionsI.

=or# 'la!k"rn sai#E

it is !o//on eno" to ave provisions as are ere /ore or less strinent sain tat noextra &ork sall e pai# %or "nless it is or#ere# in &ritin te *nineerF an# i% s"! !on#itionsare properl /a#e an# tere is notin %ra"#"lent or ini


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8 o% te !ontra!t provi#e# tat Tno deviations from t!e drawings of +sic t!especifications will be sanctioned or permitted unless an order in writing signed by t!eColonial 'rc!itect aut!orising suc! deviations, be first obtained U. e o"rt el#E136

e la& is too !learl estalise# n"/ero"s #e!isions to per/it o% an #o"t tat &ereorders in writin" constitute a condition precedent to t-e ri"-t of pa%ment for etras s"!

a !on#ition !annot e ot over. Je/pasis a##e#K

Forman * Co v .!e (!ip Liddesdale13&as appeale# to te 7riv o"n!il %ro/ teS"pre/e o"rt o% i!toria. la"se 8 provi#e#E

e ontra!tor sall not /ake an alteration or #eviation %ro/ te spe!i%i!ation aree# "ponnor sall !e be entitled to mae any c!arge or claim for e3tras or %or antin &atever eon#te l"/p s"/ aree# "pon "nless te e otain te &ritten san!tion o% te !aptain or isaents at te ti/e o% /akin s"! a##itions or alterations &i! sall e at a pri!e aree# "pon.

Wilst te /ain iss"e in te !ase &as one !on!ernin te a"torit o% an aent teo"rt %o"n# tat !la"se 8 prevente# te ontra!tor %ro/ /akin an !lai/ %or extras"nless it a# a &ritten or#er as re


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$n 'l9atabi v 2aidi 140 te ontra!tor !lai/e# %or provi#in ?variation a#vi!e?. la"se12 o% te !ontra!t provi#e#E

!rocedure for Variations

'e%ore !o//en!in &ork on a variation te ontra!tor /"st provi#e to te &ner a noti!e in&ritin !ontainin a #es!ription o% te &ork an# te pri!e :in!l"#in GS; to te &ner :si!;. $%

not spe!i%ie# te pri!e &ill e taken to in!l"#e te ontra!torVs /arin %or overea#s an# pro%it.e noti!e /"st ten e sine# an# #ate# ot parties to !onstit"te a!!eptan!eI

ariations sall e s"Ae!t to te overall !on#itions o% tis !ontra!t.

e o"rt reAe!te# te !lai/ on te asis tat te &ork %or/e# part o% te !ontra!tpri!e. Ho&ever M!oll a# sai# in oiterE141

$n or#er to estalis te appellant?s entitle/ent to !lai/ %or te s"/s tere set o"tI.teappellant a# to estalis tat te re


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5+

$% te '"il#er arees to "n#ertake te variation te variation sall e in &ritin an# sine# ot te '"il#er an# te &ner.

Weeler oserve#E14

a variation is onl a variation in a!!or#an!e &it !la"se 16 an# tere%ore onl !apale o% einte s"Ae!t o% a !lai/ p"rs"ant to !la"se 25 &en in &ritin an# sine# ot parties.

Built 1nterior &ty Ltd v .!ree Dinosaurs &ty Ltd 148 !on!erne# a '"il#er?s !lai/ %orvariations &i! a# not een #ire!te# in &ritin as re


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s"rveorE C#eig!t of ban allowing two feet for pitc!ing and metalling C. e o"nto"rt A"#e el# tis satis%ie# te re


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Cno extra sall e pai# %or "nless or#ere# an or#er in &ritin te r!ite!t in#orse# tee/ploerCF "t tat stip"lation #oes not ex!l"#e altoeter te i/plie# #o!trine o% la& tat &enone /an #oes &ork %or anoter at is re


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i/sel% alto" not in &ritin te 7rin!ipal /"st pa %or te/ in#epen#entl an#tat a ne& !ontra!t ein t"s !onstit"te#. e i!torian B"ll o"rt re%"se# to #ist"rte A"r?s %in#in %or te ontra!tor on tis point sainE165

ere is notin to prevent te e/ploer i/sel% ivin #ire!tions as to a##itional &orks to eexe!"te# or ivin or#ers not oppose# to te !ontra!t. T-e emplo%er mi"-t orall% make an%

additional contract -e pleased.

$n "ussell v Viscount (a da Bandeira166 te 7rin!ipal &as el# liale to pa te properval"e o% arti!les s"pplie# te ontra!tor a%ter te oriinal !ontra!t &as !o/plete#.is &as on te asis tat te arti!les &ere s"pplie# "n#er a ne& !ontra!t reasono% te !o/pletion o% te oriinal !ontra!t.

$n Wegan Constructions &ty Ltd v Wodonga (ewerage 'ut!ority,16 te ontra!tor&as ale to !lai/ !o/pensation o"tsi#e te !ontra!t as te variations #ire!te# &ere%o"n# to e eon# te s!ope inten#e# te oriinal !ontra!t.

8.4.3 *inal certificates

e S"perinten#ent /a !erti% a/o"nts as ein #"e to te ontra!tor %or extra&ork. $% in s"! !ir!"/stan!es te !ontra!t /akes te !erti%i!ate !on!l"sive as toa#A"st/ents to te !ontra!t s"/ te 7rin!ipal /a %in# i/sel% "nale to rel "ponte asen!e o% a &ritten or#er or to oter&ise !onten# tat te extra &orks ave noteen per%or/e# in a!!or#an!e &it te !ontra!t or at all.168 Ho&ever as note# aovean aritration !la"se /a e s"%%i!ientl &i#e to allo& an s"! %inal !erti%i!ate to ere-assesse#.16+

8.4.4 aiver

&aiver o!!"rs &ere a part to a !ontra!t vol"ntar aan#ons a rit. Ho&ever teprovisions o% a !ontra!t !annot e &aive# onl a rit to en%or!e an entitle/ent /ae &aive#. ere is a oo# #is!"ssion o% ?&aiver? in Commonwealt! of 'ustralia vVerwayen10. $n tat !ase Mason sai# o% &aiverE11

!!or#in to its stri!t leal !onnotation &aiver is an intentional a!t #one &it kno&le#e&ere a person aan#ons a rit a!tin in a /anner in!onsistent &it tat ritE

$t /a e open to te ontra!tor to ar"e tat tere as een a &aiver te7rin!ipal o% te re


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:!; te o"n!il stoo# an# sa& te ontra!tor #oin tese extras &ito"t&ritten or#er an# took te ene%it tereo%F an#

:#; te ontra!tor &as in#"!e# tese a!ts an# !on#"!t to elieve tat teo"n!il &o"l# not re


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:; #isp"tes arose a%ter te *nineer #ire!te# te ontra!tor to per%or/ &orks ina !ertain &aF

:!; te *nineer re%"se# to !on%ir/ or ive te #ire!tion in &ritinF

:#; te ontra!tor !arrie# o"t te &ork !lai/e# %or te &ork as a variation an#

re%erre# te #isp"te to aritrationF an#

:e; te aritrator %o"n# tat te &orks re


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,iblio"rap-%

/rticles and ,ooks

'ell/ore . Cariation !lai/s in te asen!e o% re


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'tlantic Civil &ty Ltd v Water 'dministration Ministerial Corporation @nreporte# )SWS"pre/e o"rt Giles 25 Septe/er 16 !toer an# 30 )ove/er 1++2

'ttorney9/eneral v McLeod :18+3; 14 = :)SW; 246

Balfour Beatty &ower Construction 'ust &ty Ltd v 8idston /oldmines Ltd J1+8+K 2 (#

105

Barter v Mayor of Melbourne :180; 1 = 160;

Beaufort Developments +01 Ltd v /ilbert 9's! +01 J1++8K 2 ll * :H=; 8

Bedford v Cudgegong Boroug! :1+00; 16 W) :)SW; 142

Bet!le!em (ingapore &rivate Ltd v Barrier "eef #oldings Ltd @nreporte# )SWS"pre/e o"rt 'rson 2 !toer 1+8

Bell Bros &ty Ltd v Metropolitan Water (upply, (ewerage and Drainage Board @nreporte# Western "stralia S"pre/e o"rt 'rins#en 30 !toer 1+80

Brenner v First 'rtists Management &ty Ltd J1++3K 2 221

Brig!ton v 'ustralia and 0ew 2ealand Baning /roup Ltd J2011K )SW 152

Broadmeadows District Board v Mitc!ell :186; 4 WW , ' :=; 101./

B& "efinery +Westernport &ty Ltd v (!ire of #astings :1+; 16 = 363

Brodie v Corporation of Cardiff J1+1+K 1 33

Built 1nterior &ty Ltd v .!ree Dinosaurs &ty Ltd J2003K )SW 2+0

Bus! v W!ite!aven &ort * .own .rustees :1888; 52 7 3+2

Bus! v .!e .rustee of t!e .own * #arbour of W!ite!aven :1+88; 52 ' 3+2

Bysout! v7 (!ire of Blacburn and Mitc!am +0o7


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/ #awins and (ons &ty Ltd v (abemo &ty Ltd "nreporte# )SW S"pre/e o"rtGiles 8 Mar! 1+8+

Beaufort Developments +01 Ltd v /ilbert 9's! +01 J1++8K 2 ll * :H=; 8

/ra!am %vans * Co &ty Ltd v (&F formwor &ty Ltd :1++1; 8 '= 14

#obbs Bell &ty Ltd v &ola :1++5; '7 14

#unin Coney Construction v 6( J1+2K 461 Be#. ep. 2# 120

1n t!e matter of an 'pplication by -ueensland %lectricity Commission J1+86K 33 '=1

)*W )amieson Constructions Ltd v C!ristc!urc! City rist!"r! Hi o"rt ook )o 108>82 :8 )ove/er 1+84;

) Crosby * (ons Ltd v &ortland 6rban District Council :1+6; 5 '= 121

)o!nson v 'merican #ome 'ssurance Company :1++8; 15 = 162

)o!n #olland +Constructions &ty Ltd v Bell Bros &ty Ltd @nreporte# S"pre/e o"rto% Western "stralia '"rt Walla!e an# Wi!ka/ 31 "l 1+80

)ones v Dalcon Construction &ty Ltd J2006K W 205

8itsons (!eet Metal Ltd v Matt!ew #all Mec!anical * %lectrical %ngineers Ltd :1+8+;4 '= 82

Lewis Construction +%ngineering &ty Ltd v (out!ern %lectric 'ut!ority of -ueensland :1+6; 11 = 305

Liebe v Molloy :1+06; 4 = 34

Maggbury &ty Ltd v #afele 'ustralia &ty Ltd :2001; 185 = 152

Maye v .!e Colonial Mutual Life 'ssurance (ociety Ltd :1+24; 35 = 14

Melbourne #arbour .rust Commissioners v #ancoc :1+2; 3+ = 50

Meyer v7 /ilmer :18++; 18 )P= 12+

Mic!ael v 'ndrews :1+25; 2 (7 30

Myers v (arl :1860; 121 * 45

"e (7C7 Molineau3 * Co7 &ty7 Ltd7 and Board of .rustees of (ydney .almudicalCollege :1+65; 83 W) :)SW; 458

0eode3 Ltd v .!e Mayor, 'lderman * Burgess of Boroug! (winton * &endlebury :1+58; 5 '= 34

0ew 2ealand (tructures and 1nvestments Ltd v Mc8enzie J1++K 1 )P= 515

&atman and Fot!ering!am Ltd v &ilditc! :1+04; H"#son?s '. . :4t e#; 368

&erini Corp v Commonwealt! +"edfern Mail %3c!ange Case J1+6+K 2 )SW 530

-antas 'irways Ltd v )oseland * /illing :1+86; 6 )SW= 32

"ivat &ty Ltd v B * 0 %lomar %ngineering &ty Ltd J200K )SWS 638

"ussell v Viscount (a da Bandeira :1862; 13 ' :)S; 14+ F :1862;143 *.. 5+


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(C .averner * Co Ltd v /lamorgan County Council :1+41; 164 = 35.

(!arpe v (ao &aulo "y :183; =.. 8 pp. 5+

(imple3 Concrete &iles Ltd v .!e Mayor, 'lderman and Councillors of t!eMetropolitan Boroug! of (t &ancreas 14 '= 80

(ist Constructions v (tate %lectricity Commission of Victoria J1++2K 5+

(tate (avings Ban of Victoria v7 Costain 'ustralia Ltd :1+83; 2 = 1

(tate "ail 'ut!ority of 0(W v Baulderstone #ornibroo &ty Ltd :1+8+; 5 '= 11

(wanson Bros &ty Ltd v (tardawn 1nvestments &ty Ltd i!torian S"pre/e o"rt"nreporte# 8 Ma 1+6

.aylor Woodrow 1nternational Ltdv Minister of #ealt! 1+ SS 1 +

.!acwray v Winter :1880; 6 = :=; 128

.!arsis (ulp!ur * Copper Company v Mc%lroy * (ons :188; 3 pp as 1040

.!e District "oad Board and "atepayers of t!e "oad District of Broadmeadows vMitc!ell :186; 4 W,W , a?':=; 101

.!iess (ervices &ty Ltd v Mirvac -ueensland &ty Ltd J2006K ( 50

.uta &roducts &ty Limited v #utc!erson Bros &ty Limited :1+2; 12 = 253

.aylor Woodrow 1nternational Ltd v Minister of #ealt! :1+8; SS 1

6pdate Constructions &ty Ltd v "ozelle C!ild Care Centre Ltd :1++0; 20 )SW= 251

Vidovic! v (calzi * (calzi :1+86; 3 '= 85Waler v Council of t!e Municipality of "andwic :1+2+; 30 S :)SW; 84

Wegan Constructions &ty Ltd v Wodonga (ewerage 'ut!ority J1+8K 6

Westpac Baning Corporation v .anzone &ty Ltd J2000K )SW 25

WMC "esources Ltd v Leig!ton Contractors &ty Ltd :1+++; 15 '= 4+

Williams v Fitzmaurice :1858; 15 * 0+

Wormald %ngineering &ty Ltd v "esources Conservation Co 1nternational :1+88; 8'= 158

Wren v %mmett Contractors &ty Ltd :1+6+; 118 = 6+

4ors!ire Water 'ut!ority v (ir 'lfred Mc'lpine * (on +0ort!ern Ltd :1+85; 32 '=114


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Bk Australia Variations Aug13

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