Managing project variations to avoid disputes
A common cause of disputes reviewed by the Association dispute resolution committee which arise between accredited contractors and their domestic clients, is a failure to agree on project scope changes that arise during a project. The measures required to prevent this situation arising are simple but often overlooked. This article shall address the circumstances that commonly lead to a disagreement and suggest solutions.
Scope changes are a common occurrence in all landscape projects, but particularly in combined design and build domestic landscape projects where the client(s) have a close relationship with one business.
Common scenarios arise where the client(s) identify an opportunity to modify the area or type of a landscape element during the construction phase, after the design (and costs associated with this design) has been agreed between client and contractor.
The client may not always appreciate the consequences of the scope change in terms of labour, time, materials and - most importantly - the overall cost of the project. The contractor, eager to please the client, may agree to this scope change and modify the works accordingly, before gaining positive consent from the client which states they understand the implications of the scope change in terms of labour, time, materials, and cost of the project.
Disputes have arisen where the client wrongly assumed a scope change had no effect on the price originally quoted by the contractor. The contractor did not follow-up with a revised quote, which led to the client disputing the final cost of the project - but only once the work was complete.
It is essential the contractor records all scope changes and seeks the approval of the client for each of these before proceeding. The following options are considered best practice:
a) the contractor shall email the client with full details of the scope change, including the specification and cost of this change, including all relevant information e.g., impact the scope change will have on the project schedule. The contractor must not proceed with this scope change until the client accepts this scope change in writing.
b) the contractor shall issue a new version of the quotation and, if necessary, the design drawings, to reflect the scope change. The contractor must not proceed with this scope change until it is accepted by the client in writing.
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