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Forensic Claims Analysis

Extend of Variation Work

In the Open Standard
Tommy kingMember for 19 years 11 months
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hi

Question : What is the norm in term of % for Variation work exceeding Original Contract Sum ?

How FAR can it go ? before it jeopordize the original contract.

Hope to have some ideal on it .

cheers
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3 replies

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  1. 0
    Ahmed Farouk ·
    #1
    In most contracts this % is clearly stated and mostly it varies from (+/-)5% to 25%
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  2. 0
    Dayanidhi Dhandapany ·
    #2
    In FIDIC General Conditions of Contract, it has been mentioned as 15%, but in special conditons you can change it to a max of 25%. i have not yet heared anything beyond 25% so far.
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  3. 0
    Tahir Naseem PMP, CCE ·
    #3
    Dear
    in my opnion these are all related to the lumpsum contract but when the contract on unit rate or manpower supply it is not applicable. Yes there is provision sum but it is not hard and fast that it will not increase the 25% because if the owner said that it increase form 25% and you have to complete the work the contractor will leave the job because in this case all the risk on owner shoulder not to thecontractor.
    Result - The job will not complete and the loss agian toward the owner.
    This rule can be applicale only in case of lumsum contrcat.
    Regards
    Tahir
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