Whether a contractor is entitled to be paid for carrying out a variation where no written instruction is given is a perennial issue in construction projects. Everyone is working hard to complete a job on time, instructions are given on site to change the works, these changes are implemented but the paperwork never quite catches up. Then a dispute arises.

What are the consequences of such oral instructions? It will depend on the wording of the contract and the actions taken by the parties, but there are a number of potential outcomes:

• There was a valid variation instructed under the contract entitling the contractor to additional time and money.
• There was no valid variation instructed and so the contractor is in breach by changing the works it was required to complete under the contract.
• There was no valid variation instructed such that the contractor is not entitled to additional time or money, but the employer has given the contractor permission to change the works so it is not in breach by changing the works.
• There was no valid variation instructed but the contractor is still entitled to additional money for the varied works on another basis.

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