How can you control or reduce Project variation in claims?

Variation claims are a common challenge faced in mixed development construction projects, but there are several steps that can be taken to reduce the likelihood of these claims. Here are some ways to control or reduce variation claims;

1. Good RFT documentation: This is a crucial aspect of the project as it sets out the requirements, evaluation criteria, contract terms, and submission requirements. Clear and concise RFT documentation can help reduce variation claims by ensuring that all bidders are on the same page and understand the work.
2. Schedules of Rates: Having pre-agreed rates for variations can help reduce disputes and claims related to variations. This helps ensure that there is clarity in the pricing of variations and that both parties are in agreement.
3. Change Management Process: A well-defined change management process is essential to manage changes to the scope of work, timelines, and budget. This includes a clear procedure for requesting and approving changes, assessing the impact of the changes, and documenting the changes. A proper change management process can help reduce disputes and claims related to changes.
4. Risk Management: Identifying and managing risks is essential to reduce variation claims. This includes identifying potential risks, developing mitigation plans, and regularly reviewing and updating them. This helps prevent potential issues from becoming major problems and reduces the likelihood of claims.
5. Effective Pre-awarded negotiations: Negotiating variations before awarding the contract can help reduce disputes and claims. It allows both parties to discuss any potential variations and agree on pricing and terms before work begins.
6. Clear Contract Terms: The contract terms should be clear and concise. This includes the scope of work, timelines, payment terms, and dispute resolution process. A clear contract helps ensure all parties are aware of their obligations and can help prevent disputes and claims.
7. Effective Communication: Clear communication is key to reducing variation claims. This includes regular updates to all stakeholders, including the client, contractors, and sub-contractors, about progress, changes, and issues. This helps ensure that everyone is aware of any changes and can take appropriate actions to prevent claims.

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