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VARIATION ORDER AND TIME EXTENSIONS

Almost all construction projects vary from the original design, scope
and definition. Whether small or large, construction projects will have
inevitably departed from the original tender design, specifications and
drawings prepared by the design team. This can be because of technological
advancement, statutory changes or enforcement, change in conditions,
geological anomalies, non-availability of specified materials, or simply
because of the continued development of the design after the contract has
been awarded. In large civil engineering projects variations can be very
significant, whereas on small building contracts they may be relatively minor.
Variation orders are basically due to additional perception on the usage
of the structure being built or to resolve issues or problems arise which were
not foreseen beforehand. To elaborate more, it can be classified into two. A
variation order can either be an Additional/Extra Work or Modification Work.
Additional/Extra Works are orders that are not included in the original
plan and scope of works of the construction. It can be an additional
structure, work or any other service rendered by the contractor to the client
in connection to the project which is outside the clause of the original
contract. On the other hand, Modification Works are orders to change
something in the original plan. It is either to add something or remove
something with regards to the original scope of work in the contract.
The following reasons below were the mentioned causes of the
variation orders in the project by the contractor:

Change of the designed key plans

Alteration of materials used

Alterations of sequencing of steps

Variations may give rise to additions or deductions from the contract sum.
The valuation of variations may include not just the work which the variation
instruction describes, but other expenses that may result from the variation,
such as the impact on other aspects of the works. Variations may also (but
not necessarily) require adjustment of the completion date.

It can have a positive cost impact or negative cost impact to the agreed
amount payable by the owner to the hired contractor. Upon the changes
comes with an additional or reduction cost of service or materials. This
therefore results to conversion in the final billing and overall costing of the
project.
Processing of variation orders comes with attachments defining the
change and demand for the consent of the parties involved in the contract.
These attachments depends on the demand of the work to be done, hence
the list below are the most common attachments:

Letter of Agreement/Contract

Revised Cost Breakdown

Variation Order Proposal

Original Key Plan

Floor Layouts showing Revisions

Approved design of the changes

Shop drawings

Some of the supporting documents were held confidential as part of


the agreement between the contractor and owner and as part of the
company policies of MEC.

Letter of Award/Contract stating the conditions agreed upon by the


owner and the contractor. It also states the conditions regarding variation
orders and time extensions.

Shop Drawing

TIME EXTENSIONS
Contract time extensions are based on the ability to demonstrate that
delays have occurred in the construction schedule affecting project
completion date. All time extension should be bases on delays beyond the
Contractors control, many of them as part of change order requests. Time
extension requests are normally specified in contracts provision and
requesting time extensions should be made following all steps and
documentation under the contract guideline.
When it becomes reasonably apparent that there is a delay, or that
there is likely to be a delay that could merit an extension of time, the
contractor gives written notice to the contract administrator identifying the
relevant event that has caused the delay. If the contract administrator
accepts that the delay was caused by a relevant event, then they may grant
an extension of time and the completion date is adjusted.
This affects the Gantt chart and the Project S-Curve. This usually takes
place after a variation order to catch up with competition of time, then time
extension for workers are requested. This will also change the project Gantt
chart leading to change in the project S-curve. It also affects the budget of
the construction, because if time extension are issued, there will be
additional cost of labor, materials and other aspects of the budget in
construction. After the variation is issued and if and only if the construction
of one activity needs to catch up with the time of completion, time
extensions for workers are requested.
Here are some reasons for Time Extensions:
-

The Owner asks for a delayed start

New or Extra Work not included in the original scope or contract

Unusual or adverse weather conditions

Shortage of Materials

Unavailable Equipment

Lack of Manpower

Environmental Conditions

Lack of coordination leading to revision of works

As per the contractor, MEC, they havent applied for Time Extensions,
rather, they adjust the other works and follow the time and schedule
computed or is stated at the contract.

PROBLEMS ENCOUNTERED
During our stay in Camella Condo Homes in Taft, Manila which is under
the Millenium Erectors Corporation or MEC, we are also taught on the
different problems encountered inside the site.
Here are some of the problems discussed to us.
Problem: Delay due to weather conditions and late delivery of materials.
Solution: When it rains, there will be no concrete pouring for the day and will
be rescheduled immediately. If there are delays in the delivery of materials,
the structural and architectural works are done simultaneously so that time
will not be wasted. Also, companies are advised to deliver their materials on
time.

Problem: Excess/Deficiency in Concrete


Solution: Support is immediately added in order to prevent the concrete
from exploding.

Problem: There is a deficiency of materials in the site.


Solution: The cost for the additional materials needed will be shouldered by
the contractor.

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