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What is the difference between the V.O and Claim?

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Question added by Moussa Mohammad Moussa Sharaf , Senior Contracts Administrator , Tecnicas Reunidas
Date Posted: 2014/11/18
ayaz ahmad
by ayaz ahmad , Contracts Manager , ABB

Variation Order is an addition/deletion/modification to agreed terms and condition, scope or specification of the contract.

 

A claim is a request for compensation (Time and/or cost) which is caused by breach of contractual obligation.

VO which is executed (or ordered to execute) without equitable adjustment in contract leads to claim

It is always better to timely notify any potential claim and first request it as variation and only if Employer does not fulfil its obligation to amend the contract for the Variation Order, the case of claim shall be pursued.

Mahmoud Zrek
by Mahmoud Zrek , Project Control Manager B.Eng, PMP®, MBA , AECOM Arabia

  • VO stands for Variation Order which is normally issued by Contract first party (Client).
  • The claim is an official request by Second party for additional money or time due to VO or other reasons out of his control    

Sureshkumar Puthenpurayil Kuttappan
by Sureshkumar Puthenpurayil Kuttappan , Assistant Executive Engineer , Kerala Water Authority

VO - Variation Order give an approval for a "Capping figure"

Claim - Invoicing for the exact executed and measured quantities within that capping figure.

ashwin kumar
by ashwin kumar , F & B Supervisor , Abela & Co

A part of a claim if any variation takes place

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