Project management basics Managing variations and change control in the construction industry Keeping and recording a variation log

1. Project Management Basics
Managing Variations & Change
Control in the Construction
Industry
Promenade Projects

2. Workshop Introduction
• What is our job?
▫ to add value
• What is Project Management?
▫ “a temporary group activity designed to produce a
unique product, service or result”

3. The Contract
• What forms a contract?
▫ offer, acceptance, consideration
• Why is the contract so important?
▫ “produce a unique product, service or result”
• What is in the contract?
▫ what documents form the contract

4. Project Management Workshops
• First in a series of workshops dealing with
elements of project management and our
developing procedures
▫ Reporting, Project Start Up, Document Control &
Filing, Delay & Disruption, Cost Value
Reconciliation (CVR), Purchasing ……..
• And anything else we want to include

5. Project Management Basics
Managing Variations & Change
Control in the Construction
Industry
Promenade Projects

6. What is a variation ?
• Variation means any change (additions or
omissions) to the Works, the timescale in which the
works are completed and the order or way in which
the works are to be completed.
And
• Which is instructed or approved as a variation under
the clause in the contract dealing with Variations to
the contract.

7. Change Control
Managing change is both an opportunity
and a risk and is key to the successful
delivery of projects
- financial and programme

8. Acceptance of Variations
Who can issue Instructions?
▫ Only take instructions from the person / company
we are in contract with
▫ Ask yourself “Who pays us?”
Who can receive Instructions?
▫ Project Manager

9. Acceptance of Variations
How are Instructions issued?
▫ Only take instructions in writing
▫ If an instruction isn’t in writing, write it yourself -
C.V.I’s and confirm it with the person issuing it

10. Logging Variations
Recording Variations
▫ Keep a record and log all variations
▫ Start and maintain a Variation Log
Why log a change?
▫ A variation log enables accurate production of
Applications / Invoices (stage payments)

11. Variation Log
Contents
▫ Item # (Co)
▫ Authorisation
▫ Date received
▫ Description (brief)
▫ Value (and % complete, current value)
▫ Effect on Programme

12. Variation Issues
• Use your judgement
• Assessing the variation
▫ For value and risk to the programme
• Revisions to the programme
• Variations are generally not paid on a time &
material basis, they are paid in accordance
with the contract T&Cs

13. Actions
• To create and maintain a variation log
• Variation Logs to be updated weekly and
included in company and client weekly
reports

14. Wrap Up
• Variations are both Risk and Opportunity
• A variation log enables accurate production
of Applications / Invoices (stage payments)
• This process assists us in adding value to
projects, developing opportunities and
minimising risks

15. Thanks
Thank you and see you next time
Promenade Projects