Clauses 37, 38, and 39 of the Conditions of Contract detail the requirements of Variation Orders.

Few construction contracts run their course without the need to modify the work shown in the Contract Documents. The need for Variation Orders usually arises as a result of changed or unforeseen conditions during the progress of the work. They are issued to modify the original plans and specifications by increasing or decreasing the quantity of work or by otherwise altering the character of the work. It is the Engineers’ (Team Leader) responsibility to differentiate between a situation that warrants compensation (i.e. issuance of a Variation Order) and a cost which is part of Contractor’s risk, which must be borne by the Contractor.

The Project Manager (or his representative) is authorised by Clause 39 of the Conditions of Contract to request variations, however the Project Manager is not able to issue a Variation Order that increases the cost. The Employers approval should be obtained in writing for any variation.

The Contract is such that the Project Manager does not have to demonstrate to the Contractor that he has the Employer’s approval for a Variation Order. If the Project Manager instructs a variation, the Contractor should act on it on the understanding that the Project Manager has already secured the Employer’s approval. If in this scenario the Project Manager has not obtained the Employer’s approval, the Project Manager may be held liable!

Variation should be processed in accordance with Clauses 37, 38, and 39