PROCEEDINGS OF THE CHIEF EXECUTIVE OFFICER, KERALA INFRASTRUCTURE INVESTMENT FUND BOARD, THIRUVANANTHAPURAM (Present: Dr.K.M.Abraham, CFA) ORDER NO: CPE/2421/2018/KIIFB dated 15/11/2019 Sub: Deviations and variations in contract agreements of KIIFB projects- Clarification- reg Ref: 1) G. O. (Ms) No.69/2018/Fin Dated 24/02/2018 2) Order No. CPE/2421/2018/KIIFB Dated 29/10/2018 ORDER KIIFB has accorded approval for various projects to be executed through several Special Purpose Vehicles (SPVs) and most of those have either started or in the tendering stages, Based on the initial scrutiny and inspections carried out on the progressing projects, it has been observed that, in some of the cases deviations and variations in the items of work are likely to occur. Accordingly KIIFB has examined the issue in detail and already formulated a process for dealing with such deviations and variations vide order No. CPE/2421/2018/KIFB dated 29.10.2018. In continuation to the directions and procedures contained in the above order for processing of variations / deviations in the work, following clarifications are issued herewith to remove the ambiguity in interpreting the procedures stipulated in the above mentioned order by SPVs while submitting deviation / RE proposals: 1. Terminology " Variation" refers to change in quantities on BOQ items with or without extra/substituted items but without upward change in PAC Terminology “Deviation” refers to change in quantities on BOQ items with or without cextra/substituted items but with upward change in PAC 3. Variation: The SPVs need not to wait for the approval from KIIFB, if there is no change in scope of work and upward change in PAC, and may continue the work after intimation to KIIFB through PMS as per the latest guidelines issued by KIIFB. With the concurrence of variations by TS authority, payment can be released to the contractor for all deviated quantities & extra/substituted items as per the terms and conditions of contract. However, this shall be subject to the examination by Inspection Authority to avoid deliberate attempt on non-execution of low rate quoted items, execution of abnormalquantity in high rate quoted items, variation/deviation in original items without any technical requirement at site ete, Deviation: In the scenario of any change in scope of work and upward change in PAC, SPV shall submit the deviation proposal with the concurrence of Technical Sanction Authority to KIIFB. After getting an in - principle approval from KIIFB, SPV may enter into Supplementary Agreement with contractor, if required as per contract conditions. The deviated quantities and extra/substituted items of work shall be paid to the contractor after executing supplementary agreement, if required, as per contract conditions. . SPV shall submit the final revised estimate / deviation proposal against the in-principle approval for the revised financial sanction of KIIFB strietly following the technical serutiny note issued as per the in- principle approval. Based on this formal approval for final revised estimate shall be issued in due course subject to the fulfilment of all , procedural and contractual requirements. Dr. K. M. Abraham CFA Chief Executive Officer ‘The ACS/Principal Secretary/ Secretary All department Heads of SPVs ‘The Chief Project Examiner, Inspection Authority, KIFB Additional Secretary, Inspection Authority Joint Fund Manager, KIIFB ‘The General Manager (Project Appraisal), KIIFB ‘The stock file’ Office copy. Nave eNe Forwarded/ By Order at Senior Project Examiner