Guide letter 29: Recommendation to client - variations

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Guide letters provide advice about matters architects should consider when composing letters to the parties involved in architectural projects.

1. When and how?

1.1 Your client must be advised of any variation to the works. When an instruction for a variation arises, which is likely to result in a claim for adjustment of the contract, (either price and/or time), you should usually obtain your client's approval, prior to an instruction to proceed being issued (refer also to item 5 below).

1.2 Note: Not all variations result in an adjustment to the contract price or a change to the date for practical completion.

1.3 This letter giving notice and/or requesting approval for a variation to the contract should, if possible, contain information about the effect this variation will have on the contract. You should issue this letter as soon as you are aware that a variation has arisen and you have received the required details from the contractor. The details should have been checked by relevant specialist consultants.

1.4 The Institute has developed a suite of pro forma documents to suit the various types of instructions incorporated in the ABIC suite of contracts. These forms include space for detailed explanations of the variation and a distribution list, and may be used in place of a letter to the various parties.

2. Content

Advise:

  • your assessment that the quote is fair and reasonable
  • nature of the variation
  • reason for the variation
  • impact of the variation on the cost and construction time for the project, if any
  • implications of not accepting your recommendation.

Recommend:

  • approval, if the variation arises out of your instruction – give reasons for your instruction.

Advise:

  • when approval is required.
3. Action

3.1 Send this letter/pro forma so that the client is fully informed, authorises the variation and acknowledges any additional expenditure on the project.

4. What happens next?

4.1 When you receive the client's approval you should instruct the contractor to proceed and issue the formal notices of cost and/or time adjustment.

5. Are there other possibilities?

5.1 When time does not permit the process outlined above, the client's consent should be sought on the basis of the architect’s or quantity surveyor's estimate. In most circumstances the contractor should also be able to provide estimates of cost and time impact subject to future verification.

5.2 If the client requires additional information or alternatives to be considered, you may need to advise the client of the latest date (as advised by the contractor) by which a decision must be made in order not to incur additional cost through time delay.

5.3 Under some commissions the architect has a degree of discretion to make decisions which do not have to be immediately referred back to the client for prior approval. In all cases the client should be notified at the earliest opportunity.

6. What can happen if you don't?

6.1 Failure to seek the client's approval for variations resulting from your instructions may result in the contractor acting on the unauthorised instruction and/or the client suing the architect for exceeding their authority.

7. Copies

7.1 Architect's file

7.2 Relevant specialist consultants

Disclaimer

This content is provided by the Australian Institute of Architects for reference purposes and as general guidance. It does not take into account specific circumstances and should not be relied on in that way. It is not legal, financial, insurance, or other advice and you should seek independent verification or advice before relying on this content in circumstances where loss or damage may result. The Institute endeavours to publish content that is accurate at the time it is published, but does not accept responsibility for content that may or has become inaccurate over time. Using this website and content is subject to the Acumen User Licence.

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