Running head: CM652 TOPIC 2 LEARNING INSIGHTS 1

LEARNING INSIGHTS TOPIC 2

ALDRIN L. MALABAD

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

MASTER OF SCIENCE IN CONSTRUCTION MANAGEMENT

PROJECT CONTRACT MANAGEMENT-CM 652

DR. LUTZER E. REYES

CM652 TOPIC 2 LEARNING INSIGHTS 2

Variation Order

 Variation Order refers to any increase/decrease in quantities within the general scope of

the project as bid and awarded. This is the introduction of new work items that are not

included in the original contract; or reclassification of scopes that are either due to change

of plans and designs that suit to actual field conditions resulting in disparity between the

preconstruction plans used for purposes of the bidding and the “as staked plans” or

construction drawings prepared after a joint survey by the contractor and the owner

during actual construction.

 Variation Order may either be in the form of a Change Order or Extra Work Order.

Change Order covers any increase/decrease in quantities of original scope in the contract.

Extra Work Order covers the introduction of new scope necessary for the completion of

the project which are not included as scope of work in the original contract.

 It is necessary that variation order clauses are part of the construction contracts to

anticipate possible risk that will arise during the construction phase.

 In construction, variation order is inevitable, however, careful planning should be

undertaken to minimize its effect to the project goals and objectives.

 There are limitations of variation orders which are provided in the government

procurement law RA 9184 and international regulations under FIDIC.