In almost all construction projects, changes or variations are common occurrences during the design and construction phases. It is therefore not surprising that in most construction contracts, standard forms or bespoke, the provision for a variation clause in the contract has become a standard, if not compulsory feature.
In this instalment article, Entrusty will describe and explain the variation provisions found in the common standard forms of building or construction contracts in Malaysia, namely the PAM (1998 & 2006), IEM (1989), JKR/PWD (203A- rev.10/83 & rev. 2007) and CIDB (2000) Forms. The aim of this article is to provide readers with a better appreciation and understanding of the variation provisions and how variations are evaluated or valued under the respective contracts.
This article answers the question of what constitute variations and how to evaluate them?, in the following separate sections ;
• Definition or Meaning of Variation
• Variation Evaluation or Valuation
• Variations Rules for Valuation of Variations
• Recent Case Law on Variations