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ORCHARD RESIDENCES GOLDEN FORTUNE TECHNO-BUILT INC.

VARIATION ORDER
Variation order is also known as change order. This is an alteration or adjustment to the
scope of work in a construction contract in the form of an addition, replacement or omission
from the original scope of work.

According to the engineers of the site, variation order initially comes from the decision of
the owner. All revisions the owner wants to implement will be forwarded to the general
contractor. The design team must submit a new proposed design, revision of the project
schedule, quantity estimates and project costs. All these documents must be approved by the
owner and management before implementation.

A variation order is required if:


 The owner wishes to have changes from the original plan. This may include
alteration of design, quantities, qualities, working conditions and sequence of
work.
 The project team discovers that the structural and architectural plans have
conflicts with regards to dimensions or some specifications.
 The buyer has bought unit/s and he wishes to do some modifications along with
the existing plan, like for example, combination of two individual units.

Variations are often sources of argument and can cost a lot of time and money during the
course of a contract. While some variations are unavoidable, it is wise to minimize potential
variations and subsequent claims by ensuring that uncertainties are eliminated before awarding
the contract.

Here are the common causes for variation orders:


 The whole project was estimated incorrectly
 During the course of the project, additional features or options are recognized and
requested.

A sample document of a recent variation order is shown below:

CE198-2R / B3: CE PRACTICUM 2 | GANITANO, KO, PINEDA, RELOJ, SAN SEBASTIAN, TERNATE
ORCHARD RESIDENCES GOLDEN FORTUNE TECHNO-BUILT INC.

Sample Variation Order Request (Page 1 of 2)

CE198-2R / B3: CE PRACTICUM 2 | GANITANO, KO, PINEDA, RELOJ, SAN SEBASTIAN, TERNATE
ORCHARD RESIDENCES GOLDEN FORTUNE TECHNO-BUILT INC.

Sample Variation Order Request (Page 2 of 2)

CE198-2R / B3: CE PRACTICUM 2 | GANITANO, KO, PINEDA, RELOJ, SAN SEBASTIAN, TERNATE
ORCHARD RESIDENCES GOLDEN FORTUNE TECHNO-BUILT INC.

An actual variation order requested by the owner

The sample document above shows that the general manager of Fareast Property
Development Corporation, Ms. Elizabeth Chua, had requested some revisions at 2nd and 3rd floor
when she made a walkthrough at these areas. To be specific, the service stairs was converted into
storage rooms with the new stairs as access of the storage room at 3rd floor. Also, the walkway at

CE198-2R / B3: CE PRACTICUM 2 | GANITANO, KO, PINEDA, RELOJ, SAN SEBASTIAN, TERNATE
ORCHARD RESIDENCES GOLDEN FORTUNE TECHNO-BUILT INC.

2nd floor was converted into landscape area. Moreover, the wall at 3rd floor near fire exit was
converted into railing. In addition, the walkway and driver station at 3rd floor was converted into
admin room. Finally, an additional railing was requested to be placed at driver station with a
height of 1m. With these variations, the general contractor made an additional budgetary cost
which was showed to MFPDC president, Mr. Henry Lim.

Cost proposal of variation order at 2nd and 3rd floor (page 1 of 3)

Cost proposal of variation order at 2nd and 3rd floor (page 2 of 3)

CE198-2R / B3: CE PRACTICUM 2 | GANITANO, KO, PINEDA, RELOJ, SAN SEBASTIAN, TERNATE
ORCHARD RESIDENCES GOLDEN FORTUNE TECHNO-BUILT INC.

Cost proposal of variation order at 2nd and 3rd floor (page 3 of 3)

CE198-2R / B3: CE PRACTICUM 2 | GANITANO, KO, PINEDA, RELOJ, SAN SEBASTIAN, TERNATE
ORCHARD RESIDENCES GOLDEN FORTUNE TECHNO-BUILT INC.

Original plan at 2nd floor

2nd floor plan with variations

CE198-2R / B3: CE PRACTICUM 2 | GANITANO, KO, PINEDA, RELOJ, SAN SEBASTIAN, TERNATE
ORCHARD RESIDENCES GOLDEN FORTUNE TECHNO-BUILT INC.

TIME EXTENSIONS
Time extension is encountered whenever delays have occurred during the course of
project construction which will later on affect the schedule of the completion date of the project.
Time extensions are made with proper documentation based on the contract’s guideline.
Requesting for time extensions ought to be notified to the project manager by the general
contractor in order to inform them in case that the project schedule will be affected. For approval
of the time extension request, a formal letter must be presented and addressed to the contract
administration stating the reasons and nature of time extensions. The project manager decides
whether the request will be approved or rejected. Upon approval of the request for time
extension, the project manager answers a written document and a change order within the
allotted time frame.

Time extension documents should have the following:


 Nature of the delay
 List of activities from the project schedule that will be affected
 Exact time frame that indicated the specified working/calendar days
 Recommendations given to the contact administrator
 Actions taken by the general contractor
 Alternative solution to be presented to the contact administrator

Time extension requests are made due to the following:


 Variation order
 Insufficient manpower
 Shortage of materials/equipment
 Unusual weather conditions

CE198-2R / B3: CE PRACTICUM 2 | GANITANO, KO, PINEDA, RELOJ, SAN SEBASTIAN, TERNATE
ORCHARD RESIDENCES GOLDEN FORTUNE TECHNO-BUILT INC.

Time Extension for Slope Protection and Earthworks (page 1 of 2)

CE198-2R / B3: CE PRACTICUM 2 | GANITANO, KO, PINEDA, RELOJ, SAN SEBASTIAN, TERNATE
ORCHARD RESIDENCES GOLDEN FORTUNE TECHNO-BUILT INC.

Time Extension for Slope Protection and Earthworks (page 2 of 2)

CE198-2R / B3: CE PRACTICUM 2 | GANITANO, KO, PINEDA, RELOJ, SAN SEBASTIAN, TERNATE

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