PPR - 2007, Rule 118

118. Variation Order:

(1) After having started the work in accordance with the procurement contract, if there is required addition to and reduction in the quantity or addition of new item to or substitution in such work due to technical reasons, the following authority may, after preparing the cost estimate of such alteration and new item, issue a variation order subject to the provision of Section 54 of the Act as hereunder:-

(a) In cases where the drawings, design and specifications etc. of the construction work need not be changed but the quantity of the work will be altered, the variation order of up to five percent of the contract price by the chief of the public entity of gazetted second class rank.
(b) Variation order of up to ten percent of contract price, whether the drawing, design and specifications of construction work requires to be changed or not, by the chief of the Public Entity of the gazetted second class by obtaining the approval of one level higher authority, and variation order of up to fifteen percent by the Departmental head by assigning technical justification, (c) In the case of procurement of goods and other services, variation order of up to fifteen percent of the contract price, by the chief of the concerned Public Entity by assigning technical justification, and
(d) In the case of procurement of consultancy services, variation order of up to ten percent of the contract price, by the chief of the concerned Public Entity by assigning technical evidence and variation order of up to fifteen percent by the Departmental head by assigning technical justification.

(2) If a variation order exceeding fifteen percent of the contract price requires to be issued pursuant to Sub-rule (1), a proposal shall be submitted, with the recommendation of a committee consisting of chief of the financial administration section, concerned Departmental head and one officer concerned with subject matter or expert designated by the secretary under the chairpersonship of the concerned secretary in the case of the Public Entity under sub-clause (1) of clause (b) of Section (2) of the Act, to the Council of Ministers, Government of Nepal and in the case of other Public Entity to the supreme executive body of that entity.

(3) A variation order shall not be issued with rates exceeding the rates stated in the procurement contract. If a variation order requires to be issued with higher rates, an approval shall be obtained from one level higher authority after making the rate analysis as well.

(4) If a new item requires to be added to the construction works under the procurement contract, the Public Entity shall have to determine the rate by analyzing the rate as well of such new item.

(5) In issuing a variation order pursuant to this Rule, there shall be clearly stated the nature of variation, large item, small item, whether time requires to be extended or not; if time requires to be extended how much time is to be extended, whether the rate of variation item is lesser or higher than that of stated in the bill of quantities, what is the percentage of the total contract price in terms of updated modifications, the source to meet additional amount for the work required to be carried out under the variation order; what will be the percentage of the total sum after variation compared to the initial contract price.

(6) If any additional work requires to be done immediately due to lack of time for any reasons or due to occurrence of conditions requiring an emergency work to be done, if any, the Public Entity may further the proceedings of variation order by obtaining prior approval of the one level higher authority.

 

SBD

37. Changes in the Quantities

 

37.1 If the final quantity of the work done differs from the quantity in the Bill of Quantities for the particular item by more than 25 percent, provided the change exceeds 1 percent of the Initial Contract Price, the Project Manager shall adjust the rate to allow for the change.

37.2 The Project Manager shall not adjust rates from changes in quantities if thereby the Initial Contract Price is exceeded by more than 10 percent, except with the prior approval of the Employer.

37.3 If requested by the Project Manager, the Contractor shall provide the Project Manager with a detailed cost breakdown of any rate in the Bill of Quantities.

38. Variations

38.1 All Variations shall be included in updated Programs produced by the Contractor.

 

PWD Part III, Medium Contract, Clause 38, Condition of Contract

38. Changes in the Quantities

38.1 If the final quantity of the work done differs from the quantity in the Bill of Quantities for the particular item by more than 25 percent, provided the change exceeds 1 percent of the Initial Contract Price, the Project Manager shall adjust the rate to allow for the change.

38.2 The Project Manager shall not adjust rates from changes in quantities if thereby the Initial Contract Price is exceeded by more than 10 percent, except with the prior approval of the Employer.

38.3 If requested by the Project Manager, the Contractor shall provide the Project Manager with a detailed cost breakdown of any rate in the Bill of Quantities.

 

PWD Part II, Procedural Directives, Chapter 11: Construction of Works Sub Chapter 11.6.5

11.6.5 Changes or New Rates and Prices

Where rates or prices are required to be changed as result of changes in quantities exceeding limits prescribed in the conditions of contract, the Employer and Consultant shall reach agreement with the Contractor in accordance with the conditions of contract. Where rates or prices are required for new items in the BOQ, the Employer and Consultant shall reach agreement with the Contractor either by using existing rates and prices as far possible or by establishing new rates which fairly reflect the Contractor’s cost, overhead and profit. New rates and prices shall not provide the Contractor with an unreasonable increase in profit.