Variations & Subcontract Amendments Procedure

Definitions

Variation means any addition or reduction to the Scope of Work or services requested to the Subcontractor from that previously defined in the Subcontract drawings, specifications to be executed according to the provisions of the terms of the Subcontract.

Introductory Statement

The Main Contractor shall notify to the Owner as to and when the Subcontractor identifies a Variation. As a general rule, any work carried out as a result of a Variation shall not commence until the Variation is approved unless, in the opinion of the Construction Manager, any delay caused by the approval process might result in additional costs. In all cases a Variation Form must be signed by the Subcontractors authorized Site Representative to show that the Subcontractor accepts the work and the method of payment, prior to the commencement of the Work itself.

In cases of disagreement, the Subcontractor may sign the Variation under protest or as noted but in any case will be obliged to carry out the work.
Whenever the Subcontractor is requested to carry out work relevant to a Variation on a day work Rate basis, Main Contractors site supervision will strictly monitor and supervise the work in order to ensure the expected productivity and to verify the hours for the labor and equipment utilized. In special cases where the Variation shall be performed based on timesheet basis, Subcontractor shall immediately secure signature from the Main Contractor on the attendance sheet of workers prior to the start of the work and likewise shall be signed by Main Contractor immediately after the work have finished.


Type of Variation

The Changes or Subcontract Amendment between the Main Contractor and the Subcontractor shall be arranged according to the the General Terms and Conditions of the Subcontract. A Variation may involve and be considered as following types:

1) A variation initiated by the Subcontractor based on a revision to drawings, specifications or any other written instruction by the Main Contractor (It would not be applied if a revision were to have been received before the work has been commenced).

2) A variation requested by Main Contractor for changes or additional work required completing a particular part of the works but not included in the original Scope of Work of the Subcontract.

Basis of Payment for a Variation

A Variation may refer to any type of work, as defined above, to be paid as follows:


1) Re-measurable Basis
2) Using existing unit rates basis
3) New unit rates basis (pro-rated from existing rates, where possible)
4) Day work rates plus cost of materials (if any)

The above sequence is the order of priority of the four methods of payment for a Work Order. As a rule, work on day work rate basis shall be kept to a minimum where possible.
New unit rates shall be derived from the existing rates in the Subcontractor on a pro-rata basis whenever possible.

Closure of Variation

When the Discipline Superintendent, through the Area Construction Superintendent, together with all other relevant departments such as Engineering, QA/QC confirms to the Construction Manager that a particular Variation is technically accepted, the Construction Manager shall raise a formal notice of completion signed by him and issued to the Subcontractor.

The Variation will then be incorporated in the next monthly Change Order log.