Variation Order Procedure Clause Samples
The Variation Order Procedure clause establishes the formal process for requesting, reviewing, and approving changes to the original scope of work in a contract. Typically, this involves submitting a written request detailing the proposed change, which is then evaluated for its impact on cost, schedule, and resources before approval or rejection by the relevant authority. This clause ensures that all modifications are documented and agreed upon, thereby preventing disputes and maintaining control over project scope and budget.
Variation Order Procedure. 22.4.1. If the IAA requests a proposal, prior to instructing a Variation Order, the Supplier shall respond in writing as soon as practicable but in any event within the time stipulated by the IAA, by submitting:
22.4.1.1. a detailed evaluation of the work to be performed and a plan for its execution;
22.4.1.2. the effect of the Variation on the Works and on the Project, including any effect on the Time for Completion and on the Approved Project Execution Plan; and
22.4.1.3. an estimation of the costs associated with such Variation, including working hours and prices of all Components, all in accordance with Section 22.5 below.
22.4.2. The IAA shall, as soon as practicable after receiving such proposal, respond with approval, disapproval or comments and request from the Supplier to make amendments thereto. The Supplier shall not delay any work whilst awaiting a response.
22.4.3. Each instruction to execute a Variation shall be issued as a Variation Order by the IAA to the Supplier, who shall acknowledge receipt. Upon receipt of a Variation Order, the Supplier shall forthwith proceed to carry out the Variation and be bound to the terms and conditions of the Contract in doing so as if such Variation was required under the Contract.
22.4.4. It is hereby agreed that the IAA shall decide, at his sole discretion, whether to ask for such proposal or not, and the Supplier shall in any event be obliged to execute each and every Variation instructed by the IAA. Furthermore it is clarified that nothing herein shall be construed as imposing any obligation on the IAA to issue a Variation Order.