Contract Variation

TERMS EXPLAINED

Muli uses the terms contract variation and amendment differently - depending upon the relationship. There are three tiers to the contractual relationship that can occur in Construction:

• At the top is the Client who has commissioned the work.

• Then there is the Construction Company who is responsible for delivering the project

• Finally there are the Subcontractors who are responsible for doing the work.

 Muli assists your management minimise misunderstandings when discussing these issues by using specific terminology depending upon the related tier, as follows:

HEAD CONTRACT VARIATION

• HEAD CONTRACT is the contract between the “Client” and the “Construction Company”
• VARIATION is a change to the Head Contract

SUBCONTRACT AMENDMENT

• SUBCONTRACT is the Contract between the “Construction Company” and the Subcontractor
• AMENDMENT is a change to the Subcontract (Max of 625 amendments per Subcontract or Purchase Order)

Muli's software can be utilised by both the Construction Company and the Subcontractors. So a Construction company using Muli would have a Head Contract with their client – who is at the top tier. But a Subcontractor using Muli would have a Head Contract with the Construction Company – who they see as their client.

More information:

Subcontracts & Amendments - refer to Muli Module "Subcontractors"

Lump Sum Contract - refer Business "Lump Sum Contract"

Construction Management Contract - refer Business "Construction Management"

Head Contract Variation - refer to Muli Module "Project Budgets Variations"