Reasons for Variations Under the common law, the contractor must complete the work under the

contract, no more or no less. However, changes may be necessary to enable concept design to be realized or to cover errors in tender documentations or to add value to the project is inevitable. For these reasons or more, there is a power in the engineer to order a variation to be valued in accordance with the specified mechanism. In this context, the value mechanism must be itself certain. Otherwise, the provision may fail for uncertainty. Note: For example, a provision in a contract, that simply says that the value of variation will be as agreed by parties, will be void for uncertainty. Any agreement to agree without more will not have any legal binding. Typical variations are due to: 1) Increase or decrease the quantity of any work included in the contract 2) Design Modifications, Value Engineering Clients additional requirements (Architects/Engineers instructions) 3) Change quality of the works (Specs) 4) Changes in legislations/Laws Government Authorities The all variations must be authorized in writing. The contractor must confirm any such oral instruction in writing. However, once a contract has been awarded, it is not lawful to remove work from that contract and to give it to another company. But the contractor bound to execute variations upon receiving engineers instructions (VOs). As to avoid risk of Working for free the contractor has to determine (at the beginning) about the Authority for issuing Variation Orders and relevant valuing mechanism. (With the Client). With proper awareness about these variations, astute contractor can reduce end job disputes, good profit and improvement in cash flow. General Procedure of Vos 1) Received engineers instructions (verbal or written) 2) In the case of verbal instructions forward COVI (confirmation on verbal instructions) to the engineer. 3) Request engineer to direct a variation (issue VO).

4) Check description, scope of work etc of the variation. 5) Check proposed variation is already covered (full or part) under the original contract. 6) Check whether the variation is compatible with the existing system and that will not cause technical or other problems. If any shortcomings bring the matters to engineers attention. 7) Prepare Variation Claim Check variation drawings with original Take off new quantity Prepare variation to quantities Prepare cost variation Prepare VC with description, cost, additions, omissions, and benefit to the owner etc Prepare quote for variation Submit Variation Claim (based on SORates or as agreed) Negotiate with the engineer (quantity, cost verifications) Power to decide final rates by engineer Related Documents File all COVI & VOs from the engineer File all VCs Maintain register (VO No., Date Qouted, ref, Amount & Description) Prepared By: Sunil Padmasekara - May 2013