Can a variation instruction ever go so far beyond the contract that it brings a separate or replacement contract into being?
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.
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 test | Work totally different from that contracted for, not merely larger |
| Quantities | A substantial increase in quantities alone will not invalidate the contract |
| Blue Circle | Work wholly outside the scope was a separate contract |
| English caution | McAlpine Humberoak: the Court of Appeal declined to find a separate contract |
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