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Have you got the measure of your variation claims?
Did you know that measurement of variations is the primary method to claim under most standard form contracts? If not, you might have the wrong end of the stick - or measure - when it comes to making claims!
If you are not monitoring your variations throughout construction contracts, you're making life difficult for your business and potential losing out financially.
Many Contractors and Sub-Contractors are in the habit of claiming reimbursement for changes on a time/resource basis - dayworks. While this may be the easiest way to ensure that the costs for doing extra things are covered, it may not be the most beneficial and profitable way. This is where valuing your variations on a monthly basis will make a difference - here's why...
By knowing how best to value change, you can maximise your returns...
...the problem with doing it wrongly is that you are always exposed to harsh negotiating tactics at the end which may deplete your value.
Doing it right in the first place maximises value and minimises the risk of the valuation being attacked at the final account stage - something that can be extremely painful for Contractors and Sub-Contractors.
To understand how to value change - not simply dayworks - you need to get into the routine of valuing your variations every month. This is something that can be outsourced to Quantum CPM through our Monthly Variations Audit service.
How Monthly Variations Auditing works
Doing a Monthly Variations Audit ensures that any deviations from your contracted work scope are properly identified, notified, costed and claimed. Ultimately this will ensure you maximise the potential financial recovery.
Outsourcing this responsibility to Quantum CPM means that contract specialists will review your variations on a monthly basis, which may be at different stages. There may be some you are aware of that will be coming up for action, and others you are unaware of. We will then make sure you have notified your client in accordance with the requirements of the contract.
It's a process that allows us to evaluate variations submitted to the client and help get them agreed for payment. All part of having better systems, more complete accounts and fewer disputes.
Part of our Bundle of Services
Our Monthly Variations Audit service is part of our Bundle of Services which is designed to help Sub-Contractors and Contractors protect themselves across the board in construction projects, helping to ensure they can deliver their services as promised with the minimum fuss or risk of financial loss.
These start before you agree to work on the project with our Contract Vetting service right through to Retention Fund Management at the end.
For a free initial consultation regarding any of our services, contact Quantum CPM on 0161 974 6655 or email .
Find out more about our Bundle of Services.
