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Construction Law/Variation Order nature

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Question
Dear Mr. Vineet Shrivastava,

I have a question relate to the Variation Order need your consultant.

Our contract is EPC contract, contract condition is very much alike to the Fidic 1999 , we are to design and provide a line of fiber optic cable and power cable run a long a highway in the tender document, in the course of contract negotiation, the work of installation the fiber optic cable was deduct to give to another contractor.

At first, according to the specification of contract, the method of construction there is to excavation and lay conduits for those lines. In the course of design those lines, there are some positions those lines shall run across the highway. But according to the Engineer and Client, they don't want to excavate because they want to protect the unanimous quality of the highway, so they request to use the jacking method (drilling across the highway). This method is much more expensive.

My question here is, the change of method statement made us suffer an additional cost that we unseen when we enter into the contract. So are we entitled for a Variation Order. Since I understand that the nature of VO is applicablefor our case.

Answer
Hi Tran

Firstly sorry for late reply, Actually very busy for last few week.

In relation to your, question, it is indeed a Variation. You need to notify the Engineer and send an additional cost claim to client, before commencing any work.

You also need to ask for an instruction from the Engineer to proceed.

I hope this will clear you query. Please leave a positive remark.

Feel free to contact me.

Regards
Vineet

Construction Law

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Vineet Shrivastava

Expertise

I can answer any question on 1. Project Planning 2. Delay Analysis - Extension of Time 3. Project Management 4. Contract Management 5. Construction Methodology I can't Answer any question 1. Cost related issues

Experience

I have 22 year experience in construction industries at Singapore, India and Australia. I worked as Planning Manager and delay analyst for contractor. I am currently working with claim consultancy as Associate Director.

Organizations
Navigant Consulting APAC Pte Ltd E C Harris Sinagpore Pte Ltd McConnell Dowell SEA Pte Ltd Kajima Oversea Asia Pte Ltd Taisei Corporation

Education/Credentials
B.E (Civil), PGDMA(PM), Graduate Diploma (Const. Management), MSc (Intl. Const. Management),LLM In Construction Law (Arbitration & Adjudication), FSIArb, MCIArb, MIES, MSIB MIIAM, MMIArb

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