Payment for extra work - Revision history

Designing Buildings at 10:51, 17 March 2022

2022-03-17T10:51:40Z

← Older revision		Revision as of 10:51, 17 March 2022
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	For more information see: Variations.		For more information see: Variations.

−	~~= Find out more =~~	+	= Related articles on Designing Buildings =
−		+
−	=== Related articles on Designing Buildings ~~Wiki ==~~=	+

	* Architect's instruction.		* Architect's instruction.

Designing Buildings at 08:29, 3 November 2020

2020-11-03T08:29:07Z

← Older revision		Revision as of 08:29, 3 November 2020
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	* Variations.		* Variations.

−	[[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor at 15:36, 14 August 2018

2018-08-14T15:36:44Z

← Older revision		Revision as of 15:36, 14 August 2018
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	* Extension of time.		* Extension of time.
	* Fluctuations.		* Fluctuations.
		+	* Henry Boot Construction Ltd v Alstom Combined Cycles.
	* Loss and expense.		* Loss and expense.
	* Measured work.		* Measured work.

Designing Buildings at 08:09, 21 December 2017

2017-12-21T08:09:03Z

← Older revision		Revision as of 08:09, 21 December 2017
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−	It is common ~~that~~ a contractor ~~may have~~ to carry out ~~extra work~~ which they consider ~~as entitling them~~ to payment ~~that is additional to~~ the original contract sum. However, the fact that a contractor has carried out extra work does not automatically mean they have a right to payment for it.	+	Building works are complex, and it is common for a contractor to carry out works not described in the original contract documents for which they consider they are entitled to additional payment over and above the original contract sum. However, the fact that a contractor has carried out extra work does not automatically mean they have a right to payment for it.

−	The contractor must be able to prove the following:	+	The exact conditions under which additional payment is merited should be set out in the terms of the contract, however, generally, the contractor must be able to prove the following:

	* The contract sum does not include the additional work.		* The contract sum does not include the additional work.
−	* There is an express or implied promise to compensate the contractor for the work.	+	* There was an express or implied promise to compensate the contractor for the work.
	* The work was instructed by an authorised agent.		* The work was instructed by an authorised agent.
	* Any conditions precedent to payment, as imposed by the contract, have been fulfilled.		* Any conditions precedent to payment, as imposed by the contract, have been fulfilled.

−	~~Where~~ the contractor has carried out extra work or uses superior materials ~~than~~ those specified ~~for a pre-agreed price~~, this will not entitle them to extra payment~~. It is important to distinguish a request for different works from that contracted by the employer from permission by the employer~~. Similarly, if the employer agrees to different work, they will not be liable for any additional payment if they were not informed of the increased costs involved.	+	For example, where the contractor has carried out extra work or uses superior materials to those specified, but they have not been instructed to do so, this will not entitle them to extra payment. Similarly, if the employer agrees to different work, they will not necessarily be liable for any additional payment if they were not informed of the increased costs involved.

−	Generally, in an emergency situation where a contractor pays a sum to preserve the employer’s property, ~~when it is impossible~~ to obtain instructions from the employer, the contractor will be entitled to additional payment.	+	Generally, in an emergency situation where a contractor pays a sum to preserve the employer’s property, and has not been possible to obtain instructions from the employer, the contractor will be entitled to additional payment.

	If the employer refuses to provide additional payment for extra work, the contractor may refuse to carry out the work. If the employer promises the additional payment, and it later transpires that the work is included in the original contract sum and so is not ‘extra’, the promise to pay will generally not be binding.		If the employer refuses to provide additional payment for extra work, the contractor may refuse to carry out the work. If the employer promises the additional payment, and it later transpires that the work is included in the original contract sum and so is not ‘extra’, the promise to pay will generally not be binding.

−	Even if the employer has had the benefit of extra work, in the absence of written ~~orders~~, it is generally held that the contractor will be unable to recover payment ~~either under the original or a new contract~~.	+	Even if the employer has had the benefit of extra work, in the absence of written instructions, it is generally held that the contractor will be unable to recover payment.

−	The contractor should consider whether what they think is ‘extra work’ is provided for by the clauses of the contract~~. It may be that the work does stand outside the contract and is not within the scope of the variations clause~~.	+	The contractor should consider whether what they think is ‘extra work’ is provided for by the clauses of the contract.

−	~~Whether extra work is properly within~~ the ~~variations clause terms will typically be determined by a court~~. ~~As well~~ as ~~passing~~ the ~~necessary declaration~~, the ~~court can~~ also ~~provide~~ the ~~monetary judgement~~.	+	Typically, contracts provide for changes to the works described in the contract documents through variation clauses. A variation (sometimes referred to as a variation instruction, variation order or change order) is an alteration to the scope of works in the form of an addition, substitution or omission from the original scope of works. Variations may also be deemed to occur if the contract documents do not properly describe the works actually required.
		+
		+	Variation instructions must be clear as to what is and is not included, and may propose the method of valuation.
		+
		+	For more information see: Variations.

	= Find out more =		= Find out more =
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	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===

		+	* Architect's instruction.
	* Change order.		* Change order.
	* Compensation events.		* Compensation events.
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	* Contract conditions.		* Contract conditions.
	* Extension of time.		* Extension of time.
		+	* Fluctuations.
	* Loss and expense.		* Loss and expense.
		+	* Measured work.
	* Quantum meruit.		* Quantum meruit.
	* Retention.		* Retention.

Editor: Created page with "It is common that a contractor may have to carry out extra work which they consider as entitling them to payment that is additional to the original contract sum. However, the fac..."

2017-12-19T15:42:26Z

Created page with "It is common that a contractor may have to carry out extra work which they consider as entitling them to payment that is additional to the original contract sum. However, the fac..."

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It is common that a contractor may have to carry out extra work which they consider as entitling them to payment that is additional to the original contract sum. However, the fact that a contractor has carried out extra work does not automatically mean they have a right to payment for it.

The contractor must be able to prove the following:

* The contract sum does not include the additional work.
* There is an express or implied promise to compensate the contractor for the work.
* The work was instructed by an authorised agent.
* Any conditions precedent to payment, as imposed by the contract, have been fulfilled.

Where the contractor has carried out extra work or uses superior materials than those specified for a pre-agreed price, this will not entitle them to extra payment. It is important to distinguish a request for different works from that contracted by the employer from permission by the employer. Similarly, if the employer agrees to different work, they will not be liable for any additional payment if they were not informed of the increased costs involved.

Generally, in an emergency situation where a contractor pays a sum to preserve the employer’s property, when it is impossible to obtain instructions from the employer, the contractor will be entitled to additional payment.

If the employer refuses to provide additional payment for extra work, the contractor may refuse to carry out the work. If the employer promises the additional payment, and it later transpires that the work is included in the original contract sum and so is not ‘extra’, the promise to pay will generally not be binding.

Even if the employer has had the benefit of extra work, in the absence of written orders, it is generally held that the contractor will be unable to recover payment either under the original or a new contract.

The contractor should consider whether what they think is ‘extra work’ is provided for by the clauses of the contract. It may be that the work does stand outside the contract and is not within the scope of the variations clause.

Whether extra work is properly within the variations clause terms will typically be determined by a court. As well as passing the necessary declaration, the court can also provide the monetary judgement.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Change order.
* Compensation events.
* Construction contract.
* Contract conditions.
* Extension of time.
* Loss and expense.
* Quantum meruit.
* Retention.
* Right to payment.
* Variations.

[[Category:Contracts_/_payment]] [[Category:Procurement]]