“NSMM Variation and Claim Management: A Gulf Engineer’s Guide to Smooth Settlements”

1. Identifying Variations Early

Variations—changes to scope, design, or site conditions—can pop up at any stage. Under NSMM, each variation needs its own line item in the BOQ with the correct NSMM code, unit, and description.

• Example: Suppose the drainage pipe diameter is increased from 300 mm to 450 mm on a Port Harcourt road project. Rather than lumping this into “earthworks,” create a distinct variation entry under the drainage section, quantified in linear metres (m) with the new unit rate.

2. Keeping a Detailed Variation Log

A simple spreadsheet isn’t enough. Use a living “Variation Schedule” that captures:

• Date of instruction (e.g., “Client’s Addendum No. 3 dated 12 Feb 2025”)

• Description (“Supply and install Ø450 mm PVC pipes”)

• NSMM code (correct drainage pipe item)

• Quantity and unit (e.g., 120 m)

• Reason (“Design revision for higher flow capacity”)

This clear audit trail helps you reconcile with subcontractor bills and supports swift approval from the employer.

3. Price vs. Quantity Variations

NSMM separates price variations (rate changes) from quantity variations (measured amount changes).

• Price Variation: The cement supplier increases rates due to market fluctuations. You’d apply NSMM’s Price Variation rules—often tied to a published index—to adjust your provisional sum for concrete.

• Quantity Variation: Unexpected extra excavation due to rocky substrata. You log the additional m³ as a quantity variation under earthworks, with supporting site reports.

By distinguishing the two, you avoid overrunning your budget and ensure each claim is validated on its own merits.

4. Documentation Is Everything

NSMM demands that claims be backed by documentation. For each variation:

• Attach the engineer’s instruction or approved drawing.

• Include a short narrative: what changed, why, and how it impacts cost.

• Reference site diary entries, survey reports, or materials delivery notes.

When your client sees a claim tied to solid evidence, approvals happen faster—and with fewer questions.

5. Submitting Interim Claims

Don’t wait until project close-out. NSMM encourages regular Interim Payment Certificate (IPC) submissions that include variation values to date. This keeps cash flow healthy and prevents a backlog of unsettled claims. Build your IPC template to automatically pull in approved variation totals from your schedule.

6. Final Account and Dispute Avoidance

At project end, compile a Final Account that reconciles all original BOQ work, variations, and price adjustments. Present this alongside your detailed variation schedule. If disputes arise, NSMM’s structured approach—clear codes, consistent units, and linked documentation—gives you the upper hand in negotiations or arbitration.