PROCESSING OF VARIATION ORDERS UNDER FIDIC RED BOOK 4TH EDITION 1992

MALCONLAW
Does Contractor seek
VO fromEngineer (CL
13 or 20)
Does Engineer deem
necessary to issue VO
(CL 51.1)
No VO
Does Engineer Issue
VO in accordance
with CL 51.1
Does Contractor
notify Engineer
accordingly
Is Engineer required
to seek Employers
Approval before
issuing VO (CL 2.1(b))
Does Engineer
Consult with
Employer
Does Employer grant
Engineer approval to
issue VO
Does Engineer issue
VO in accordance
with CL 51.1
Contractor has no Authority to
make VO or to suspend the
Works (CL 51.2)
Contractor may request the
Engineer to Issue VO in
accordance with CL 51.1
Requisite Approval Deemed
provided by Employer for
Engineer to Issue VO (CL 2.1)
Possible dispute between Engineer and
Employer. Contractor is under no obligation
to question this matter and approval is
deemed provided by Engineer issuing VO
The Engineer may make any VOin the form, quality or quantity of the Works or any part thereof that may in the opinion of the Engineer be necessary or appropriate and shall
have the authority to instruct the Contractor to vary the Works
Contractor shall vary the
Works as instructed in VO(CL
51.1)
The VO shall not in any way
vitiate or invalidate the
Contract (CL 51.1)
Is the VO as a result of
a default by the
Contractor
Any additional costs which
result fromthe VO shall be
borne by the Contractor in
accordance with CL 51.1
Does Contractor Give
notice of extra
payment or varied
rate
Are varied Works
under VOto be
executed under
Dayworks (CL 52.4)
Does the VO render
rates or prices
inappropriate or
inapplicable
Engineer to Value the VOin
accordance with CL 52.1
Engineer may choose not to
Value the VO (other than
omitted Works) in accordance
with CL 52.3
Does Contract contain
applicable rates and
prices (CL52.1)
Does Engineer deem
rates and prices
appropriate (CL 52.1)
The rates and prices as contained in the
Contract shall be used as basis to value the
Engineer to consult with Contractor & Employer to agree suitable
rates and prices for varied Works under VO(CL 51.1)
Varied Works under VO shall
be valued at rates and prices
contained in Contract (CL
52.1)
Are the rates and
prices acceptable to
the Contractor

Start of
Dispute or
Claim(CL
53 & 67)
Is Agreement
Reached on prices
and rates

Engineer shall fix appropriate rates and prices and notify Contractor
with copy to Employer (CL 52.1)
Is Agreement on rates
and prices agreed

Engineer to determine
provisional rates and prices
(CL 52.2)
Are the rates and
prices acceptable to
the Contractor

Apply the Agreed rates and
prices
Engineer to Certify amounts in
InterimPayment Certificates
The Engineer shall certify varied works instructed under the VO under the terms set out in the Day Works Schedule as included within the Contract and at the
rates and prices stated therein (CL 52.4)
Contractor shall furnish proof of all payments made by himto the Engineer and obtain the Engineers approval before the ordering of materials under Dayworks
(CL 52.4)
Contractor to submit Dayworks records as the works proceed each day to the Engineer together with duplicate lists of workmen, materials and plant engaged in
execution of the Works. (CL 52.4)
Are the Dayworks
Records correct and
Agreed (CL 52.4)
Can Engineer &
Contractor Agree on
details
No VO
Engineer to countersign one duplicate copy of the
Dayworks Records Submitted by Contractor and
return the same to the Contractor (CL 52.4)
Has Contractor
submitted Monthly
priced statement (CL
52.4)
Does Engineer consider
it impractical to submit
such statements (CL
52.4)
Not
Entitled to
Dayworks
Engineer to proceed to
authorise payment to
Contractor subject to being
satisfied the resources
together with rates and
prices are fair and reasonable
(CL 52.4)
Engineer to Certify Dayworks
Amounts in Interim
Certificates
Has Engineer issued
Taking over certificate
for whole of Works
(CL 48.1)
Await Contract Completion
Do rates require
adjustment due to 15%
variance of Contract
amount as CL 52.3
No further Adjustment to VO
Rates and Prices Required
Engineer to Consult with Contractor and Employer in
respect of adjustment of rates and Prices due to
Contract Price variance (CL 52.3)
Is Agreement reached

Engineer to determine and notify adjustments with
copy issued to Employer and Contractor
Is SumAcceptable

Engineer to Adjust Final Contract Price &
Certify accordingly
Start of
Dispute or
Claim(CL
53 & 67)
Y
N
N N
N N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
Y Y
Y Y
Y
Y
Y
Y
Y
Y
Y
Y
Y Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y Y
N
N
N
N
N N
N
N
END