Professional Documents
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Variation Order Procedure
Variation Order Procedure
Procedure
Document No.: PRA-00002-PP-07-PRM-02
CONTENTS: ATTACHMENTS:
DOCUMENT HISTORY
The purpose of this procedure is to map-out the process of approvals and documentation
required to issue Construction Variation Order (CVO) to Contractors due to Change Requests
initiated by the Employer, Hill (as the Project Management Consultant), the Supervision
Consultant, or Contractor in connection with the design and construction and/or installation
works on the IFRANE PALACE Project.
2. SCOPE
This procedure applies to all construction contracts initiated by the Employer for construction
and/or installation works on the IFRANE PALACE Project.
This procedure applies to all construction contracts where the Contractors scope of works
requires changing, including drawing changes, specification changes and changes to the
method and sequence of working. It shall also apply to the expenditure of Provisional Sums.
Changes as a result of Confirmation of Verbal Instructions (CVIs) and Requests for Information
(RFIs) having a time and/or cost impact shall be subject to Employers Approval via this
procedure.
3. DEFINITIONS
EMPLOYERS
REPRESENTATIVE
HILL PROJECT DIRECTOR
SUPERVISION CONSULTANT
(ENGINEER)
COST CONSULTANT
CONTRACTOR
PROCESS
The person in Hill or the other company responsible for ensuring the procedure
OWNER
is implemented, maintained and controlled
INITIATOR / The person in Hill or the other company who starts the process
ORIGINATOR
APPROVER The person holding final authority for signature for approval of the product of
the process
SIGNATORY A person who signs for approval on behalf of the Participants Organization
INFORMED A person who receives a copy of the information and is not otherwise involved
in the process. All the above parties are deemed to be informed.
4. RESPONSIBILITIES
Hill Project Manager Hill Project Manager shall monitor this procedure to ensure that it is
properly implemented.
Hill Hill Contracts Manager has functional responsibility for all contract
Contracts variation administration.
Manager
Hill Contracts Manager shall make recommendation to Hill Project
Director on the merit of a variation.
Hill Design Manager Hill Design Manager shall be responsible for notifying the Contracts
Manager and Project Director of any changes made to the original
design during the construction stage.
Hill Project Hill Project Controls Manager shall be responsible for reviewing and
Controls Manager advising the Hill Contracts Manager and Project Director on all
matters associated with the time / schedule elements of instructions
and changes.
Cost Consultant The Cost Consultant shall advise the Project Management
Consultants Contracts Manager on all matters associated with the
cost of instructions and changes.
Supervision The Supervision Consultant shall be responsible for review of cost &
Consultant time proposal of contractors and coordinating the approval of
variation orders.
The Supervision Consultant shall be empowered to issue authorized
Site Works Instruction and approved VOs to a Contractors scope of
work.
GENERAL
Employers Rep.
5.1.10 After receiving the completed CVPR from the Contractor via
Hill Project Manager / Document Controller, Hill Contracts
Manager in coordination with the Cost Consultant, Hill Project
Controls Manager and Hill Design Manager / Construction Hill Contracts Mgr
Manager shall review the completed CVPR with Hill Design Mgr /
Construction Mgr,
documentation. Hill, Cost Consultant, Supervision Consultant
Hill Project
and the Employers Representative shall meet with the Manager,
Contractor if necessary to reconcile any differences and Cost Consultant,
negotiate an agreed adjustment. Employer
5.1.15 Upon receipt, Hill Project Manager shall issue the approved
CVO to the Contractor with copy to Hill Contracts Manager, Hill Project
Cost Consultant and Supervision Consultant. Manager
5.1.16 Hill Contracts Manager shall update the variations log (Form Hill Contracts
PRA-0002-PP-07-06-FM-LG) and variations summary. Manager,
Summary of variations is to be provided to Hill Project Hill Project
Controls Manager for issue via Hill Project Manager to Controls Manager,
Hill Project
Employer in the Monthly Report. Manager
5.2.5 On receipt of the approved SWI, Contractor shall carry out the
work tasks, prepare time and cost estimates and then forward
it to the Supervision Consultant who shall then forward it to
cost estimates to Hill Contracts Manager and the Cost Supervision
Consultant. Consultant
Hill Contracts
Manager,
Hill Project
Controls Manager,
Hill Project
Manager,
Cost Consultant
Employers Rep.
Hill Project
Manager
Contractor,
Supervision
Consultant,
Hill Project
Manager /
Document
Controller
5.2.6 After satisfactory review by Hill Contracts Manager, Cost Hill Project
Consultant and Hill Project Controls Manager, Hill Project Manager,
Manager shall forward the evaluation to the Employers Hill Contracts Mgr
Representative for review. Hill PCM,
Cost Consultant
5.2.7 Hill Contracts Manager shall convene a meeting with Hill Contracts Mgr
Contractor and Employers Representative, with participation Hill PCM,
of Hill Project Controls Manager, Cost Consultant and Cost Consultant,
Supervision Consultant to finalize the CVO proposal. Supervision
Consultant,
Employers Rep.,
Contractor
5.2.8 Following conclusion of the meeting and where there is a valid Hill Contracts Mgr
Hill Project
variation, Hill Contracts Manager shall draft a Construction Manager,
Variation Order (using Form PRA-0002-PP-07-05-FM), sign it Supervision
and obtain signature from Hill Project Manager, Supervision Consultant,
Consultant and Contractor via Hill Document Controller. Contractor
Hill Project
5.2.9 Hill Project Manager shall forward the signed draft Manager
Construction Variation Order to the Employer for approval.
5.2.12 Hill Project Manager shall issue the approved CVO to the
Contractor with copy to Hill Contracts Manager, Cost Hill Project
Consultant and Supervision Consultant. Manager
5.2.14 Hill Contracts Manager shall update the variations log (Form
PRA-0002-PP-07-06-FM-LG) and variations summary. Hill Contracts Mgr
Summary of variations is to be provided to Hill Project Hill Project
Controls Manager for issue via Hill Project Manager to Controls Manager,
Employer in the Monthly Report. Hill Project
Manager
The variation process may be initiated by the following unless the (CVP
instruction or request is to expedite the works: R)
Form
a. Project Manager's Instruction (PMI) (Form PRA-0002-PP-09- (Ref.
17- FM) issued to the Supervision Consultant Engineer which PRA-
may have additional time and cost implications to the 0002-
Contractor. PP-
07-
b. Request for Variation Order issued from the Contractor. 04-
FM)
5.3.1 The variation process is initiated, by Contractor submitting a and
Contractors Request for Variation Order (CRVO) (Form PRA- forwar
0002-PP-07-10-FM) to Hill (PMC) with copy to the d it to
Supervision Consultant for the reasons stated above in items Hill
a or b. Projec
t
Mana
5.3.2 On receipt, the Supervision Consultant shall review and
ger
assess the request and forward it to Hill. Upon review, Hill
who
Project Manager / Document Controller shall forward the
shall
CRVO to Hill Contracts Manager and the Cost Consultant for
then
review.
revie
w and
issue
5.3.3 Hill Contracts Manager shall convene a meeting with it to
Employer's Representatives with participation of Hill Project Contr
Manager, Hill Design Manager / Construction Manager, Hill actor
Project Controls Manager, Cost Consultant and Design with
Consultant (where applicable) to discuss VO proposal. reque
st for
time
5.3.4 Hill Contracts Manager with assistance from Cost Consultant, and
Hill Project Controls Manager and Hill Design Manager / cost
Construction Manager shall review, assess request and if propo
acceptable completes CRVO Form (Ref. PRA-0002-PP-07- sal
10- FM) along with PMC Request for Variation Order with
(PMRVO) form (Ref. PRA-0002-PP-07-08-FM). The CRVO copy
and PMRVO shall be forwarded to the Employer for approval to the
through Hill Project Manager / Document Controller. If Super
rejected, Hill Contracts Manager shall return the CVRO Form vision
to Contractor through Hill Document Controller and Cons
Supervision Consultant. ultant
and
Desig
5.3.5 Employers Representative should review the CRVO including
n
PMRVO and indicate approval in principle by letter (or an
Cons
agreed means) and return to Hill. If rejected, the CVRO is to ultant
be returned to Hill for further forwarding to Contractor as in via
Item Hill
5.3.4 above. Docu
ment
5.3.6 Following approval of the PMRVO by the Employer and Contr
receipt from Hill Project Manager, Hill Contracts Manager oller.
shall complete a Construction Variation Proposal Request
Contractor
Hill Contracts
Supervision Consultant, Hill Project Manager / Document Controller Manager,
Hill Project
Manager /
Hill Document
Controller
Hill Contracts Manager, Hill PM,
Hill Design Mgr, Construction Mgr, Project Cont. Mgr, Design Consultant,
Employer
Hill Contracts Mgr Cost Consultant, Hill Project Controls Manager, Hill Design
Mgr / Construction Mgr, Hill Project Manager Contractor
Hill Contracts
Employers Rep., Hill Project Manager Manager,
Hill PCM,
Hill Design Mgr /
Construction Mgr.
Hill Project
5.3.7 On receiving the CVPR, Contractor shall prepare time and Manager
cost evaluation with completed CVPR form (Ref. PRA-0002-
PP-07- 04-FM) and forward it to Hill via the Supervision Hill Contracts
Consultant Engineer. Manager,
Hill PM,
Hill PCM,
5.3.8 Hill Contracts Manager with assistance from the Cost Hill Design Mgr.,
Consultant, Hill Project Controls Manager and Hill Design Supervision
Manager / Construction Manager shall review the completed Consultant,
CVPR with documentation and forward via Hill Project Design
Consultant,
Manager to Employer for review. Employers Rep.
5.3.9 Hill Contracts Manager shall convene a meeting with Hill Contracts
Contractor and Employers Representative, with participation Manager,
Hill Project
of Hill Project Manager, Hill Project Controls Manager, Hill Manager,
Design Manager / Construction Manager, Supervision Cost Consultant,
Consultant and Design Consultant to finalize the CVO Contractor
proposal.
5.3.10 Following conclusion of the meeting, Hill Contracts Manager Hill Project
shall draft Construction Variation Order (using Form PRA- Manager
0002-PP-07-05-FM), sign it and obtain signature from Hill
Project Manager, Cost Consultant and Contractor via
Document Controller.
5.3.15 Hill Contracts Manager shall update the variations log and Hill Contracts
Manager,
variations summary (Form PRA-0002-PP-07-06-FM-LG).
Hill Project
Summary of variations is to be provided to Hill Project Controls Manager,
Controls Manager for issue via Hill Project Manager to Hill Project
Employer in the Monthly Report. Manager
6. REFERENCES
7. ATTACHMENTS
EMPLOYER DRIVEN VARIATIONS PROCEDURE (during Construction) NOTE: This is a generic procedure and is to be adapted to comply with the project
specific requirements
EMPLOYER CONSULTANT CC CONS ENG CONT Input / Output
Insert Client Logo
Here
Contracts Manager
Design Consultant
S Start A Review/Assist
P Perform
Cost Consultant
O/ Receive Original/
Contractor
C I
D Decide Issue
Copy
X X X Attend meeting Optional
10. Hill, Cost Consultant and Employer analyse the proposal and meet with
the Contractor if necessary to reconcile any differences and negotiate
an agreed adjustment. X X X X X X
11. Hill Contracts Manager draft Construction Variation Order (CVO) Draft CVO
P
(Form CCC-NNN-PP-07-05-FM), signs & obtain signature from Cost Cons.,
Hill Project Director and Contractor via Document Controller. Hill Contracts C
Manager logs the CVO on CVO Log form (Ref.CCC-NNN-PP-07-06-LG). P P
Employer's Representative
Here
Contractor
Contracts Manager
Cost Consultant
Controller
KEY
O/
Receive Original/ D Decide I Issue
C
Copy
X X X
Attend meeting Optional
SWI Method To be used for Site Works Instruction for items which are S
necessary to avoid abortive works.
and forwards together with Site Works Instruction (SWI) using Form R
Ref. CCC-NNN-PP-07-07-FM to Hill Project Director for review and
signature. Hill Project Director forwards SWI together with estimate
attachments to Employer for approval to proceed.
5. Contractor carries out the work and prepares time & cost
estimates and forwards to Supervision Consultant who then P
8. Where there is valid variation, Hill Contracts Manager in coordination Draft CVO
C P A P
with Cost Consultant drafts Construction Variation Order
(Form CCC-NNN-PP-07-05-FM), signs & obtain signature from Hill
Project Director, Supervision Consultant and Contractor via Hill
P P
Document Controller.
11. After signature, the Employer Representative returns the CVO to Hill. Memo
P
NOTE: This is a generic procedure and is to be adapted to comply with the project
CONTRACTORS' REQUEST FOR VARIATION PROCEDURE specific requirements
CC SC CONS CONT Output
EMPLOYER PMC (Hill)
Insert Client Logo
Here
Employer's Representative
R/
Contracts Manager
Design Consultant
A Review/Assist
P Perform
Cost Consultant
Design Manager
Contractor
O/ Receive Original/
C I
D Decide Issue
Copy
When FIDIC rules applies, Contractor's Variations request arises if an Instruction from the S
Supervision Consultant Engineer constitutes a Variation as per Clause 3.3 of the
Conditions of Contract for Construction, FIDIC 1999
All Variations must be approved by The Employer prior to commencement of Work
For all Variations please refer to Clause 13 of the Conditions of Contract for Construction,
FIDIC 1999
The Variation process may be initiated by the following unless the instruction or
request is to expedite the works:
a. Project Manager's Instruction (PMI) issued to the Contractor which may have
additional time & cost implications to the Contractor. (Form CCC-NNN-PP-09-17-FM)
b. Issue from the Contractor of a request for a Variation Order.
1. Process initiated by Contractor requesting Variation Order (Form CCC-NNN-PP-07-10-
FM) for the reasons stated above in items a or b, to Supervision Consultant Eng'r and Contractor
P Variation
PMC (Hill) Request
C A
3. Hill convenes a meeting with The Employer's Representative, Design Consultant and the X X X X X X X
Cost Consultant to discuss VO proposal.
P A A A C
4. Hill reviews, assesses request and if accepted completes Form CRVO & PMRVO
CCC-NNN-PP-07-10-FM along with completed form CCC-NNN-
PP-07-08-FM (PMC Request for Variation Order) and
6. Following approval of the PMRVO by the Employer, Hill Contracts Manager completes aI P Construction
Variation Proposal
Construction Variation Proposal Request (Form CCC-NNN-PP-07-04-FM) and forwards Request (CVPR)
to Hill Project Director who issues to Contractor with request for time and cost proposal
with copy to Supervision Consultant and Design Consultant. C C O
Completed
C C P CVPR
7. Contractor prepares time & cost evaluation with completed form CCC-NNN-PP-07-04- + documents
FM and forwards to Hill via Supervision Consultant.
R P R R R
8. Hill and Cost Consultant reviews & forwards to Employer for review.
R
9. Hill meets with Contractor, Supervision Consultant, Cost Consultant, Design Consultant
and
Employer to finalise. X X X X X X X X
C P A
10. Hill Contracts Manager draft Construction Variation Order (Form CCC-NNN-PP-07-05- Draft CVO
FM), signs & obtains signature from Hill Project Director and Contractor via Document
Controller.
14. Employer's C C P
Representative
arranges for
11. Hill Project Director forwards signed draft Construction Variation Order to Employer. P Employer Project
Controls
C Manager to file
12. Employer internal process for signature memo.
D
NOTE: Employer Internal decision to be within contractual time restraints P
13. After signature, the Employer's Representative returns the CVO to Hill, and Hill Project P
Director issues to the Contractor with copy to Hill Contracts Manager, Cost Consultant,
I R
Supervision Consultant and Design Consultant.
C
C C C O
Memo
Approved CVO
P P
15. Hill Contracts Manager updates the variations log and variations summary (Form I
CCC-NNN-PP-07-06-FM-LG). Summary to be issued to Employer in the Monthly
Report. C
SWI
7.4 Variation Proposal Form
7.5 Variation Order Form
7.6 Variation Order Log
7.7 Site Work Instruction (SWI) Form
7.8 PMC Request for Variation Order (PMRVO) Form
7.9 Contractor's Request for Variation Order (CRVO) Form
7.10 Project Managers Instruction (PMI) Form