VARIATIONS: Dispute Avoidance and Effective Management under the JCT Standard Building Contract

Abstract

This study seeks to present research into variations with particular emphasis on procedures under the JCT Standard Building Contract. The research attempts to provide clarity of formalities surrounding variations and highlight potential areas of ambiguity in order to determine the most effective way to manage variations and eradicate potential dispute in this subject area.
An extensive literature review was carried out which exposed that the main area of ambiguity and dispute was generally related to the absence of written instructions. Further research therefore explored the use of oral instructions and how related procedures under the JCT Standard Building Contract were followed in practice. The methodology adopted for the further research took a quantitative form. The data was obtained using a questionnaire survey which was distributed to 45 different contractors in the North West of England.
The main findings derived from this study suggest that the specific clauses relating to oral instructions are somewhat lenient and consequently are often misused which creates difficulty when monitoring project costs and causes contention between parties. It also found that in contrast, the JCT Intermediate Building Contract does not include provisions for oral instructions, which raises the question of whether the ambiguous clauses in the JCT Standard Form are even necessary.