JCT SBC with CDP - Should Variation Rates for materials/ labour be based on tender date?

I am working on a JCT SBC with CDP contract which was tendered in 2019. Due to COIVD the project was delayed significantly after works had just begun on site.

Throughout the works, large portions of the design have changed. I am facing issues when pricing variations as current rates and prices are significant higher than the time of tender (Labour & Materials Generally). There is no provision for price fluctuation in the contract.

To give an example, the decoration package has changed significantly, the type and extent of works no longer reflects what is being done on site. Paint specs etc have changed.

The rate for decoration is significantly lower than what we would be paying now. as we have been instructed to omit the current rates and replace with new spec, do i have to stick with the original labour allowance or should this be at current rates and prices?

The client is essentially looking to make savings where in reality we are already making a loss on this element of works.

Martin

Thanks for the question. I have one back and that is are the changes to the CDP elements or the other parts of the Works?

best

Mike

Mike,

Some are to CDP items which where not fully broken down in the CSA i. e contractor design stairs & finishes, priced as in item.

Some are to measured works, such as the decoration where both the specification and quantitys have changed.

The delays and material/labour increases have had a much more significant impact on costs than usual so I’m concerned about having to provide savings where in reality there are none.

Thanks

Martin