Is contractor entitled for variation in lumpsum contracts?
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.
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