Can a variation take the work so far beyond the contract that a separate or replacement contract arises?

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Legal and contractual solutions - Variations

Can a variation instruction ever go so far beyond the contract that it brings a separate or replacement contract into being?

When a change falls outside the variations clause

A change can occasionally be so far removed from the contracted work that it falls outside the variations clause and becomes a separate contract, paid on a quantum meruit. The English courts set a high bar and rarely reach that conclusion.

Quick answer

Yes but rarely in the United Kingdom: a change so peculiar and different from what the parties contemplated may fall outside the variations clause and amount to a separate contract to be paid on a quantum meruit or fair valuation, but a mere increase in quantities will not, and the English courts are cautious about finding one

Yes, but rarely in the United Kingdom. A change so peculiar, so unexpected and so different from what the parties reckoned on may fall outside the variations clause and amount to a separate contract, to be paid on a quantum meruit or fair valuation rather than at contract rates. In Thorn v Mayor and Commonalty of London the court accepted that such work may fall outside the contract altogether, while a mere increase in quantities, even a substantial one, will not invalidate the contract. Bush v Whitehaven Trustees shows a job forced by employer delay into harder winter conditions paid on a quantum meruit, and in Blue Circle Industries v Holland Dredging Co a variation directing that excavated material form a bird island was held to be work wholly outside the dredging contract and so a separate contract. The English courts are cautious, and in McAlpine Humberoak Ltd v McDermott International the Court of Appeal overturned a finding of a separate contract despite a large rise in drawings and a cut in the number of pallets.

The testWork totally different from that contracted for, not merely larger
QuantitiesA substantial increase in quantities alone will not invalidate the contract
Blue CircleWork wholly outside the scope was a separate contract
English cautionMcAlpine Humberoak: the Court of Appeal declined to find a separate contract

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