Variation Order from

PWD form of Contract

(Design & Build)

Prepared by:
Adrian Bong Yew Chung
1002162657
Table of contents
01 02
Introduction PWD Form DB

03 04
Variation Order Clauses in PWD form of
Contract in Design and build

05 06
Process of Variation Order Conclusion
 01
Introduction
 Contract
Definition Contract Formation Purposes of Contract
- legally binding agreeement between 1. Mutual Assent 1. Create legal relationship
two or more parties, in which both 2. Consideration 2. Provide duties and obligations the
of them agree to fulfill certain 3. Offer and Acceptance parties have agreed to
obligations or duties. 4. Legal Purpose 3. When a contract has been breached
5. Capable Parties by one of the parties, the other
- Sir William Anson mentioned party will have important legal
that“A Contract is an agreement remedies to consider.
enforceable at law, made between 4. Sets out events;terms and
two or more persons, by which condition
rights are acquired by one or more
to acts or forbearances on the part
of the other or others”.

- An agreement enforceable by law

(Contract Act 1950-section 2(h))
 Contracts in Malaysia

1. PAM Contract 2018 (With Quantities)

2. PAM Form of Contract for Sub-Contract
3. P.W.D. Form 203A (Rev.1/2010)
4. P.W.D. Form D.B. (Rev.1/2010)
5. CIDB Standard Form of Contract for building works
6. CIDB Standard Form of Contract for Renovation and small projects
7. AIAC Standard Form of Contract for Building Works
8. FIDIC Contracts Red book
 02
PWD Form Design and
Build (Rev.1/2010)
 P.W.D Form D.B (Rev/2010)
• Design-build is a procurement method that provides a single point of responsibility for the design
and construction of the project, where the selected contractor is solely liable for the whole project
execution.

• Public Work Department (PWD) had formed a technical contract committee to develop a standard
form of contract for design-build projects.

• Formed in 1996

• The first PWD contract for Design and build is PWD Form DB/T Edition 2002

• Then the form is revised with the new PWD Form DB 2007

• PWD Form DB 2010 is being utilized until today.

Figure 1: Chart organization Figure 2: Chart organization
of PWD Design & Build of PWD 203A (Rev/2010)
 PWD Form Design and Build (REV. 1/2010) Roles PWD Form 203A (REV. 1/2010)

Known as the P.D or Project Director based Client Known as S.O or Superintending Officer
on the contract. based on the contract.

Not Available Consultant Architects for management function and design

leadership

Not Available Consultant team manager (management)

Not Available Architects for design purpose

Not Available Project Administration, Supervising Officer

Contract Administrator, and Architect
for administration purpose

Not Available Contractor Clerk of Work as Site Inspector

Consultants include Architect, main contractor, Builder, main contractor for overall Responsibilty
design and build project manager for overall
responsbility

Contract manager, project Project manager, site supervisor, builders for Constructor’s staff
engineer,supervision team, builders
For Constructor's staff

Architect, Civil & Structural sub-contractor, Mechanical &

Electrical Sub-Contractor, Supplier for Partial Responsibility Civil & Structural sub-contractor, Mechanical & Electrical sub-contractor,
quantity surveyor, supplier for Partial Responsibility
 03

Variation Order
 Variation Order
• In general terms, Variation Order in construction can be defined as any change to the original contract.
• The variation can be in a way of addition or omission to the original scope of work.

• The causes of Variations include

1. Employer related change

2. Consultant related change
3. Contractor related change
4. Other Variations (weather,..etc)
 Variation Order
• In PWD Form D.B (Rev.1/2010), the Variation Order is in Clause 23.0 from page 24 to page 25.

• “A change in the Government’s Requirements which make necessary the alteration or modification of the
design, quality or quantity of the works as described by or referred to therein and affects the Contract sum”.

• “The addition, omission or substitution of any work”

• “The alteration of the kind or standard of any of the materials, goods to be used in the works”

• “The removal from the site of any work executed or materials or goods brought thereon by the Contractor for
the purposes of the Works other than work, materials or goods which are in accordance with this Contract. “
 Valuation of Variations
Step 1
● In Clause 23.2
● In PWD Form DB (Rev.1/2010),
the Project Director is the person
who supposed to issue the
instruction, a variation in a form
of variation order
● The variation instructed by the
Project Director (P.D) under
clause 23.2 shall be obeying the
contract
Step 2
● In Clause 23.3, it is clearly stated that
the Contractor is still need to
responsible for the design of the works
based on Clause 14 although they have
been solely determined by the Project
Director (P.D) what constitutes
suitability, functionality, and safety of
the work.
● However, if the variation comes with
the extra cost, the extra cost shall be
borne by the Contractor.
Step 3
● In Clause 24.1, it is stated that the
assessment of extra or replacement
tasks must align with the value
assigned to works of a comparable
nature as stated in the Contract Sum
Analysis or Contract Schedule of
Rates.
● In cases where there are no
comparable works listed in the
Contract Sum Analysis or Contract
Schedule of Rates, the Project
Director will determine the
valuation.
 Valuation of Variation
Step 4
● The allowance is compulsory to
be included for valuation of work
such as addition or reduction
under clause 24.1 and clause 24.2
for the site administration, site
facilities and temporary works.
Step 5
● “If the valuation for additional or
substituted work is based on Day Work,
it will consist of the prime cost of the
work plus 15%.”
● “This 15% will encompass expenses
related to site administration, site
facilities, temporary works, and profit.
However, it is essential for the
Contractor to meet a condition before
receiving payment.”
Step 6
● “The Contractor must provide
vouchers to the Project Director
(P.D) for verification within 7 days
after the work has been executed.”
● “These vouchers should specify the
daily time spent on the work, the
names of the workmen involved,
and details of the plant and materials
used.”
 Conclusion

● In PWD Form D.B. (Rev.1/2010), the variation order means any changes to the Government’s Requirement

● Project Director is the person who supposed to issue the instruction, a variation in a form of variation order.

● Unavailability of equipments, poor workmanship, design complexity, change of schedule, and impediment to
prompt decision making process.
 Recommendation
● The four main reasons of variation orders in JKR projects include the equipments that are not available, poor
workmanship, design complexity, schedule that has changed, and impediment to prompt decision making
process.

● The recommendations are to carry out the notification and communication. The contract can define how and
when the PWD must be notified or pro[osed variations and how communication take place during the
process.

● A more options of Alternative Dispute Resolution (ADR) should be added in the PWD Form DB Rev.1/2010
to enhance the communication between parties and solve the issue as soon as possible.
 References
Cunanan, J. (2023, June 13). Understanding the Key Elements of a Contract in Malaysia | Lexagle.

Www.lexagle.com. https://www.lexagle.com/blog-en-sg/understanding-the-key-elements-of-a-contract-

in-malaysia#:~:text=Contracts%20set%20out%20the%20terms

Hameed , A., Ismail, & Faris, M. (2014, May). Significant Causes and Effects of Variation Orders in

Construction Projects. ResearchGate.

https://www.researchgate.net/publication/268630247_Significant_Causes_and_Effects_of_Variation_Ord

ers_in_Construction_Projects

Manju. (2020, July 5). Definition and types of contract. Indian Legal Solution.

https://indianlegalsolution.com/definition-and-types-of-contract/
 References
Mohammad, N., & Hamzah, Z. (2019). A review of causes of variation order in the construction of terrace housing projects

in Malaysia. MATEC Web of Conferences, 277, 03013. https://doi.org/10.1051/matecconf/201927703013

Saaidin, S., Endut, I. R., Abu Samah, A. S., & Mohd Ridzuan, A. R. (2016). The Current Practice of Design and Build

Procurement Process in Malaysia. Social and Management Research Journal, 13(2), 81.

https://doi.org/10.24191/smrj.v13i2.5273

Syahmi. (n.d.). Comparison Between PWD Form 203A and PWD Form Design and Built. Dokumen.tips. Retrieved

August 7, 2023, from https://dokumen.tips/documents/comparison-between-pwd-form-203a-and-pwd-form-design-and-

built.html
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