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Construction Law/Variation or a Claim?

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Question
If the Employer instructs the Main Con to change from Sea Freight to Air Freight a material delivery, then it is a Variation or a Claim?

The mechanism for compensation differs between the 2 clauses in PSSCoC 2014 Design & Build / Singapore.

Direct cost of invoice is 90k USD plus 15% mark up (as Contract Variation clause).

Answer
You need to read and review the definition of Variations and procedure as mentioned in your contract including the procedure to claim.

Typical definition of Variation is, any change to the Works instructed and accepted.  A claim has a different meaning. Thus, Variation and Claim is two different terms.

Should there be any incurred cost and/or additional time due to variation and/or any instruction, then you may claim additional cost and/or time depending on what is mentioned in your contract.


Hope this helps.


Regards,

Jonathan Peralta

Construction Law

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Jonathan L. Peralta

Expertise

Questions relating to construction claims, Extension of Time, Variations, Interim Payment and delay analysis under FIDIC Form of Contracts.

Experience

Experience in the following sectors: buildings, residential, infrastructure, civil and marine works. Have worked for different international contractors in Myanmar, Vietnam and the Philippines.

Organizations
AACEI, U.S.A., Dispute Resolution Board Foundation,U.S.A., ASCE, U.S.A., PICE,Philippines

Education/Credentials
Bachelor of Science in Civil Engineering, Registered Civil Engineer in the Philippines

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