How do variations occur?
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The contract usually sets out a procedure for the issuing of instructions for variations.
In practice however, contractual procedures for variations are not always followed. Disputes often arise over whether:
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- a variation instruction was given in accordance with the contract; or
- the contractor has notified a variation claim in accordance with the contract.
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If the principal does not follow the procedure for instructing a variation then the contractor may refuse to perform the variation. If the contractor elects to perform a variation which has been incorrectly instructed, then the principal may be entitled to refuse to pay for it under the contract.
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