CONTRACT APPRECIATION DOCUMENT

OBSERVATIONS ON IMPORTANT STIPULATIONS & CLAUSES

FLOW CHART (Variations + Extra Items)

For ease of reference the Clause nos. are shown as:

1. Clause xx of GCC (Pg. xx) – [A]

2. Clause xxx, xxx of GCC (Pg. xxx) – [B] 4. …..
3. Clause xxx of GCC (Pg. xxx) – [C]

Clause No.s are cross-referenced in

Flow chart as A,B,C…. Variations + Extra Items

Engineer by written instructions record all Variations and the Contractor shall without any written instruction shall not implement any
Variation. The Contractor shall not make an alteration, modification unless and until the Engineer instructs or gives consent to a variation.xx
[A]

Employer’s Variation – Variation in BOQ – Item

Contractor’s Variation rate works
[C]
[B] [A]

Proposal to be submitted in writing within prescribed time i) Some items/group of items may have to be
limit xxxx (Cl 12.2.1). altered, added and omitted.
 Employer’s Variation means a Irrespective of the magnitude of variations
change in the Employer's including additions, alterations or omissions in
Contractor to provide a detailed report Requirements which makes the BOQ individual items or group of items,
a) Description of Original Contract requirements for necessary alteration or modification specified in the BOQ.
the Works and the proposed changes. of the Design, quality or scope of
b) Detail of all proposed modifications to the Works as described by or referred to ii) Such Variations shall be paid as follows:
drawings and specifications.
in the Employer's Requirements.
c) Detail of all Work and goods affected by Value a. At the accepted rates of the Contract for
Engineering proposal.  Changes to any sequence, method Positive variation in quantities to the extent of
d) Estimate of construction cost based on the or timing of construction, 25%; Variation shall be applicable to a group of
original Contract requirements and based on the manufacture or installation and items and not to individual items
proposed changes. changes to any part of the Site or the b. Foundation works: no variation limit applies and
e) Any resultant time extensions or reductions for Works Areas or access thereto will the Contractor shall carry out the work, at rate
the Contract. not constitute Employer's Variation. stipulated in the Contract.
f) Statement of minimum saving expected. The c. Earthwork – 25% of gross qty of E/W
Contractors cost for preparation is not paid.  Please refer entire clause for d. For items “if or as required” - No increase/
provisions for request and decrease of rates whatever be the qty finally
 If the Employer or the Engineer rejects the Contractor’s implementation of Employer’s executed.
variation, it shall not be pursued by the Contractor in Variation. e. Variation in qty of items costing upto 1% of the
any other form. (B) total CV; payable as per the Contract,
 If Variation proposal is acceptable to the notwithstanding the magnitude upto 2% of the
Employer/Engineer, it will be accepted by execution original CV.
of an amendment. f. The rate if the Varied Qty >25%; negotiated
 The Contractor to accept or reject such amendment btwn Engr & Contractor.
within 5 working days from receipt date from the g. For new item:
Employer. If the Contractor does not reject, the same Material+ Enabling works+ Labour (incl 10%
shall be deemed to be accepted and shall become a extra) + P&M Hire + 20% for Corporate OH,
variation to the contract. (D) profits & Corporate taxes.
h. Extra items - Contractor to give notice at least
7 days before the need.
In the event of disagreement Engr shall fix
provisionally rates; alternatively Engr free to get it
done through any other agency. In case of dispute
Alternative Dispute Resolution……..

Variation Procedure [D] – Clause 12.4

 The Engineer shall, as soon as practicable after receipt of proposals under sub-
clauses XXX and / or XXXX; respond with approval, rejection or comments.
 If the Engineer instructs or approves a Variation, he shall proceed in accordance
with Sub-Clause XXX to agree or determine adjustments to the Contract Price,
Time for Completion and Schedule of Payments.
 After receipt of proposal, it will be the prerogative of the Employer, whether to
Instruct and proceed ahead with the variation or drop the proposal in part or full.