AVANTIS

Work Instruction Name: Management of Change and Variation Orders Issue No: 1
Work Instruction Ref: AV-MOCVO-WI-01 Date: 07/10/2019
Procedure Ref: AV-OP-02

1 20/09/2019 Gareth Haines Tom David Tom David Initial Issue

Issue Date Author Reviewed Approved Reason for Change
No

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AVANTIS

Work Instruction Name: Management of Change and Variation Orders Issue No: 1
Work Instruction Ref: AV-MOCVO-WI-01 Date: 07/10/2019
Procedure Ref: AV-OP-02

1 8
Deviation to original Raise Variation
Scope or Contract Proposal

2 9
Potential MOC Variation Proposal
raised by presented for internal
Repair Manager Governance

3 10
Potential MOC sent to Tech Admin enters
Office Based Project Variation Proposal onto
Manager/ Technical Variation Log upon
Manager for approval approval

11
4 Tech Admin sends the
MOC entered onto Variation Proposal to
MOC Log upon the Customer
approval

5 13
12 Yes Acknowledge
MOC sent to
Customer for Client accepts? acceptance
acknowledgement/
discussion
16
No 14 15
PM to allocate costs
Technical Admin to Undertake work as
(Lab/ Material) to
open phase required
18 relevant Phases
6 Yes Customer has either
Will Financial or time ignored or rejected
impact occur? 17
Project Manager to start
No progress reporting

7 19 No
MOC Filed in Project file Will this affect original Scope/ 20
Contract technically/ Do not proceed
Commercially?

If the MOC affects

Yes
the Timeline of events,
this is incorporated in the 21
Job Schedule by the Planner Evaluate technical/
commercial impacts

22
Seek approval via
Technical Manager/
Directors (refer to
quote approval for
indications of approval)

23 No 24
Approved? Do not proceed

Yes

25
Proceed

26
Technical Admin to
open phase

27
Undertake work as
required

28
Project Manager to
start progress reporting

28
Inform Customer VO
will be invoiced

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AVANTIS

Work Instruction Name: Management of Change and Variation Orders Issue No: 1
Work Instruction Ref: AV-MOCVO-WI-01 Date: 07/10/2019
Procedure Ref: AV-OP-02

Additional Notes

MOC – An MOC is issued to officially inform the Customer that there is a change in baseline of the contractual agreement.
After the formation of an agreed contract, close attention must be paid to any deviation to the baseline information or contractual agreement. It should be well noted that
such information was used to prepare the technical and commercial proposals which were mutually accepted by the Customer and Avantis. Hence, it is incumbent that all
stakeholders understand and report changes to the baseline information that affect the project in terms of duration, costs (quantity) or technical compliance (location the work
is carried out; or the physical conditions encountered) when compared to the original quoted scope of work.
Below are some examples that can be considered as a deviation to the baseline. This list is not definitive and should be interpreted by the PM/RM using their best judgement
and engineering practice.
• Change in scope of work.
• Addition or reduction in quantity of work:
o Additional work added as a result of findings during execution of original scope.
o Additional or emergent work as a result of detailed inspection which were not foreseen at the time of placement of the contract.
• Any positive or negative change in timeframe to be identified and reported.
o Any emergency work carried out on Customer’s request.
• Any positive and negative change in work or onsite condition.
• Change in basis parameters like material type, grade, pressure, temperature, Volume, pH etc.
• Revision to drawings – drawings will be issued in 3 circles of revisions. Rev A0 will be issued for Customer’s review, Rev A1 will be issued for Customer’s review and Rev
C0 will be ISSUED FOR CONSTRUCTION. Any changes requested by the Customer after issue of Rev C0 shall be raised as an MOC by Design Team and Fabrication (if
applicable).
• Changes to productive working hours (agreed downtime).
• Supply of additional materials at Customer’s request.
• Additional cost for freight, storage warehouse.
• Cost incurred due to the unavailability of ‘Assumptions’ as per the contractual agreement.
• Cost associated with addition or reduction of manpower on Customer’s request (travel, lodging etc.)

A Management of Change must always be raised and logged if a deviation to the baseline is identified and a jump straight to the Variation Proposal stage is not allowed

1.
Deviations can be anything that constitutes some change to the original binding scope or contract. These changes can come in the form of below but are not limited to:

• Additional work which is required in order to complete original scope/ contract on time and on budget
• Additional work non-related to original scope of contract requested by the Customer
• Work related to original scope/contract but has significant or insignificant change i.e. please change this “instead of”

All potential Management of Change (MOC) sources are to be considered including Project correspondence, meeting minutes, Project Progress Reports, Design documentation, com-
mercial, Project Management, Commercial and Financial impacts.
Once a potential change has been identified consequences are considered and due consideration taken to technical issues, cost impact, schedule mitigation and contractual implica-
tions. Communicated comments from relevant departments will be important to identify and action at an early stage.

2.
The understanding of who is the lead on the project will determine who is responsible to complete AV-MOC-F01 Management of Change form. Project Manager may determine this to
be completed by them or the Repair Manager.
Where the Repair Manager is not capable, whether it be through experience or English, then the Project Manager must be very proactive in communication to ensure the Project
Manager can pick up any possible MOCs. Project Manager will fill the MOC form in with the correct information.

3.
The Repair Manager shall submit the MOC to the Project Manager (where required) for final approval on whether this is a MOC or a lack of judgement.
For final clarification, the Technical Manager should be considered for advice on which way to go.

4.
On approval by the Project Manager/ Technical Manager, the MOC is entered onto AV-MOC-F02 MOC & VO Log.

5.
On approval and entry onto the MOC Log, the MOC can be sent to the Customer by the Project Manager. Technical Administrator to be in copy of the email.
The MOC is now up for discussion and further technical & commercial requirements from the Customer may need to be dealt with.

7. and 8.
MOC is filed within project file and reported on Progress Reports, timeline of events/ project schedule.

9.
Once the MOC has been processed, and a financial element could occur due to the change, a Variation Proposal is raised by the Project Manager using AV-VO-F01 Variation Order or
AV-CR-F04 Quotation to cover the costs.

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AVANTIS

Work Instruction Name: Management of Change and Variation Orders Issue No: 1
Work Instruction Ref: AV-MOCVO-WI-01 Date: 07/10/2019
Procedure Ref: AV-OP-02

The details of additional work and the relationship between the MOC highlighted as much information as possible.
Estimation to be provided on AV-CR-F03 Estimation and job Authorisation Package with KOM.

Variation Proposal: a quotation/proposal submitted by the Project Manager with costs and timeframe for the identified MOC.
Project Manager to submit Variation Proposal, along with Estimation Package to Technical Administrator, who shall seek the required approvals based on section 3 of Work Instruction
AV-ECR-WI-01 Enquiries and Contract Review using Quotation Reference tab.
Technical Administrator shall request MOC form as part of approvals process. The Technical Administrator cannot seek approval without having the respective MOC form to reference
to.

10.
Once all Quotation Approvals are in place, the Technical Administrator can then add the Variation Proposal information to AV-MOC-F02 MOC & VO Log and retain in the project file.
Technical Administrator/DC submits Variation Proposal to the Customer on behalf of the Project Manager, ensuring the Project Manager is in copy of the email at all times.

11.
Variation Order – When the Customer accepts the Variation Proposal, it is then called a Variation Order.
Customer acceptance can be through the form of an email or a signed returned AV-VO-F01 Variation Order form or a PO. Any verbal acceptance must be followed up and the ac-
ceptance, whether written or formal, to be filed.
On acceptance, the Technical Administrator changes the status of Variation Proposal to Variation Order in the Management of Change Log and shall submit formal acknowledgment
using AV-CR-F07 Purchase Order Acknowledgment form
The acknowledgement of the signed VO/ written acceptance to proceed indicates the VO is a live work action and will be commenced imminently.

14.
Technical Administrator shall open a phase through the Job Register software system to ensure all costs are allocated correctly.
Project Manager shall be informed when the phase is set up.
The VO is now in place for scope of work to be performed.

16.
Project Manager shall ensure all costs are correctly allocated to the correct phases. All timesheets and Purchase Orders to state the correct phase number.

17.
Project Manager shall provide status of the VO on AV-DPR-F01 Daily Progress Report form. The report shall state which VO relates to which scope of work.
Hours can be tracked for that phase to ensure costings are accurate and to submit timesheets for approval if necessary.
This is also good for the Customer as it can show exactly what the team on site are doing, and how the VO has affected the main contract.

20.
Many Customer’s often either ignore or reject submissions of VOs for many reasons, however these often have significant effects on Avantis’s original scope or contract. This means
that we are obliged to the additional work regardless.
Not all MOCs will have an effect technically or commercially to the original scope or contract. This means that there is no further requirement to carry on with the work, all thought
about possibly continuing to work on this VO is gone and the MOC did not need converting to a VO.
Both Avantis and Customer have no financial impact and the original contract is still ongoing.

22.
Many MOCs have commercial and technical impacts which cannot be avoided, whether it prolongs completion date on a fixed price job, whether men are on downtime due to unfore-
seen changes or whether the job just changes throughout as the Customer cannot make their mind up. These all have an effect and some of which Avantis cannot get around.

The Project Manager has recognized that there is an effect if Avantis do not undertake this additional work and it can have a negative result on the original scope or contract.
The Project Manager must evaluate these effects finely and considering any correspondence or literature he may have received from the Customer or information the lead on site is
giving. Possible impacts shall be collated and documented.

The Project Manager shall provide the Technical Manager with all collated evidence to show what effects this MOC will have on original scope or contract. To include any correspond-
ence with the Customer and all information received from site.
The Technical Manager analyses all information carefully and come to a conclusion based on this.

23.
Not all cases will the Technical Manager and other approvals be accepted as they may have other ideas on how to get around it. Or whether the risks are too large or too small to
warrant.
Once this decision has been made, no further work is to be done. The MOC is to be filed and, if necessary, men to go on to downtime or further clarifications from Customer before
proceeding.

In some cases, the Technical Manager has consulted the relevant personnel, in accordance with Quotation Approval and has come to a conclusion the additional work must be
undertaken. This could be for multiple reasons:
• unclear Request For Quotation
• impacts too great on fixed price job with small price VO to keep completion date
• general work which was first assumed as Customer responsibility but has wavered and is not affecting us in a significant enough way

This is where the MOC has now become a VO even though the Customer has either rejected or ignored, and highlights the process of opening the phase can commence.

26.
Once the Technical Administrator has acknowledged acceptance from the Technical Manager/ Project Manager a phase through the Job Register software system shall be opened,
specifically for that particular VO to ensure all costs are allocated correctly. The Technical Administrator shall inform the Project Manager when this is place.

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AVANTIS

Work Instruction Name: Management of Change and Variation Orders Issue No: 1
Work Instruction Ref: AV-MOCVO-WI-01 Date: 07/10/2019
Procedure Ref: AV-OP-02

27.
The VO is now in place for scope of work to be performed.
Project Manager shall ensure all costs are correctly allocated to the correct phases. All timesheets and Purchase Orders to state the correct phase number.

28.
Project Manager shall provide status of the VO on AV-DPR-F01 Daily Progress Report form. The report shall state which VO relates to which scope of work.
Hours can be tracked for that phase to ensure costings are accurate and to submit timesheets for approval if necessary.
This is also good for the Customer as it can show exactly what the team on site are doing, and how the VO has affected the main contract.

Due to the fact work has been undertaken without it being agreed by the Customer, the Customer must be informed by the Project Manager that Avantis will submit an invoice at the
end of the project. All costs allocated against the phase opened in the job register software system will be the cost price for that Variation, plus any relevant taxes.
The Project Manager/ Technical Manager shall request a wash up meeting after all works have complete to review the Variation Proposals so to discuss and move a positive way for-
ward receiving payment for the work undertaken.

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