Are contractors entitled for variations in lump sum contracts?
 

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Yes. Lump sum contract means the contractor has to execute the works for a specified amount fixed in the contract. In a lump sum contract, the contractor is bound to execute works for the completion of the project as detailed in the contract documents; in some cases a bill of quantities will also be included. In either case if a specific work is not detailed in the contract or if alterations are required, then it can be treated as a variation.

Examples of variation in lump sum contracts

An example of variation in lump sum contract is removal of a building or structure which is not described anywhere in drawings or contract documents. Another example is alteration to the details mentioned such as replacing painting works with tiling. A variation order is required to be obtained from the owner/ Engineer before executing the works.

Sometimes a provisional sum will be incorporated in the contract for works which cannot be detailed or enough information are not available at the time of tender. Please visit our pages on provisional sums, contingency allowance, day works etc. for more information.

Variation provisions are detailed in Clause 51.1 of FIDIC Red Book1987 and Clause 13.1 of 1999 edition.

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