Variation of Price Clauses: A necessary solution for the construction industry?

Abstract

Should a variation of price clause be introduced to the construction industry?
Covid-19 has forced almost anyone who has signed a contract or an agreement to review their obligations and seek ways to mitigate catastrophic damages caused by the unprecedented pandemic over the past two years. Some contracts were renegotiated and varied to prepare for the worst possible scenario. In the construction industry, one of the solutions has been to introduce the Variation of Price (VOP) clause. What does this mean and will it become one of the emergency pandemic measures that stays with us ever after Covid?