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- Chapter 4 - Variations
- why have a variations power?
Why have a variations power? | ||||||||
At common law, the principal does not have an automatic right to instruct variations. Unless the contract specifically empowers the principal to instruct variations, the contractor can refuse to perform the variation and insist on performing its original scope of works. This is true of all types of variations, including increases to, decreases from, or qualitative changes to, the contractor's scope of works. This principle applies to all contracts, including subcontracts and consultants' agreements. It is therefore normal for construction related contracts to have a clause specifically empowering the principal to instruct variations. If the principal insists on a variation without the right to do so, the consequences can be serious. The instruction will constitute a breach of contract and, if the breach is sufficiently serious, may entitle the contractor to terminate the contract. | ||||||||
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