Progress Claim and Variations

Part a. (1): The two variations involved in this construction site may be brought about by the fact that there might have been improper control of the construction progress, which is usually brought about by the unnecessary changes implicated to the work. While the unforeseen delays or variations may be brought about as a result of unreasonable preparation of the construction plans. The first variation may include the adding up of a kitchen door. This will mean that the builder will vehemently expect an increase to the amount of the contract price so that it includes a total figure of, lets say, $ 900000 plus the cost of building up the kitchen which we give it a figure of $2300. The total sum will add up to 902300. Another variation may arise when the builder decides to omit the fixation of a door which, lets say, costs $ 1500. The total amount to be paid will therefore be lessened by the cost of the door so that the owner pays a total of $808500.

There may be the provision of three other payments being received by the builder form the owner. In the first scenario the builder may have used more money in constructing an extension to the building under construction. This money will be paid to him afterwards as previous payments. For instance, let’s say the extension costs the builder are $2000, and then, in total, he would receive a sum of $900200. The second form of payment, which the builder may receive as previous payments may include the money he initially used to pay the services of a sub-contractor. The owner is expected to refund the money to the general contractor. The final form of payment which the builder is entitled to receive as previous payments includes the amount which he used to pay for services which were not stipulated under the tendering documents.

Part a (I1): the progress claim procedure involves a step by step process which includes the following parameters;

(I). the first step involves the determination of the tender itself by the owner. At this stage the owner shows interest with hiring a successful builder to undertake the project as whole.

(II). the second stage involves the assessment of the tender itself and the determination of the price. At this stage both the owner and the builder agrees on a price for the completion of the project.

(III).the third stage involves the commencement of the project as a whole whereby the builder agrees to commence the project and finish it within the agreed time.

(IV). at this stage any alterations made to the tender are discussed and the two involved parties agrees on the payment criteria to be used.

(V). this is the final stage whereby the contract is terminated properly and the owner pays the builder his remainder of the contract price. At this stage the documents are presented and once again signed for future references.

In preparing a well written procedural claim concerning the matter at hand that is the incompletion of the construction and thus the breach of contract, the Plaintiff who, in this case, is the owner will hire a legal professional who will provide legal services for which he or she will present a report indicating the following requirements:

- first. The lawyer will provide a tender document which will institute the agreed time frame for which to carry out the construction project. This time frame is considered as an absolute time frame and any extensions to this time frame are expected to be in writing.

- second, the two parties are expected to have written a MOU which stipulated the total price of the overall project, which, in this case, is $ 900000, and, subsequently, the initial amount deposited with the builder in this case is $ 45000.

- third. The next step is to find out if there are any documents which detailed extensions of completing the project.

- fourth. This step involves the seeking of the services of an arbitrator or a rectification order in that matter. If the rectification order fails to perform the purpose for which it was intended then the Plaintiff, (the owner) is entitled to seek the services of the Supreme Court which has been mandated to resolve cases whose jurisdiction surpasses the $ 750000 mark.

Part B: A variation in the original contents of the contract is termed null and void in the industrial courts of law. Contracts are agreements which are made before commencement of any given project, and alterations made to it involves the consent of both the parties involved so that they agree (in unison) to include the additional detail into the contract. The variation involved in this case is the fixation of tiles. The project consists of two units with each consisting of a garage below it. This means that the total cost of changes the builder has to carry out is (2*$4,400), which amounts to $ 8800. It should be noted that the builder is also entitled to an additional amount which will compensate for the labor used in completing the project. This amount is arbitrarily fixed by the builder but it is expected to fall within a reasonable cost frame hence not exaggerated. The total amount to be paid to the builder will include the $ 8800, so he receives a total of $908800 after the completion of the project at hand.

Part B (2): Before commencing with the fixation of tiles, the builder is expected to have made efforts in confirming with the owner so that the adjustments are affected on the value of the initial contract price. In this case, the document acts as a proof of the alterations made to the initial contract. The process involved in this case includes the following:

(i)  Invitation to tender by the owner: at this stage, the owner shows an interest in bidding for a contract where he can have his construction project commence.

(ii) The second procedure involves the determination of the time which is allowed for the tendering process and at this stage both the builder and the owner agree on a specific time for which to clear the whole project.

(iii)The third procedure involves the determination of the tendering documents so that all things are set straight. At this stage the owner expects the builder to showcase his document for verification purposes.

(iv) The fourth step is to assess the tender and come up with a binding contract which will then be used as a go ahead by the builder to commence construction. At this stage the builder is mandated with responsibilities of completing the project within the stipulated time frame.

(v) The final stage involves the completion of the tender and at this stage the builder is said to have completed his part of the contract and therefore expects to receive the remaining part of the amount. The owner pays him his amount and the two are said to accomplish the contract.