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How do you manage variation in project and what checks and controls do you have ?

Please provide your detailed answer to let me assess the best one. Jay

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Question added by Jay Parekh , Contract Manager , Japanese Company
Date Posted: 2013/12/31
Bhavin Mehta CCP(CCE), PMP
by Bhavin Mehta CCP(CCE), PMP , Assistant Manager , Larsen and Toubro Ltd

1) monitoring PMB- performance measurement baseline for effective management of cost, time and scope. 

2) Controlling the scope- only working on the requirements which are in line with the project charter. A RTM (requirements tracebility Matrix) can be a very helpful tool for that.

3) Risk Register (continuously updated throught the project)

4) Some established quality metrices

5) issue log and change log

 

MOHAMMED ABD EL HAY
by MOHAMMED ABD EL HAY , planning engineer , Khatib and Alami

1- Make a record for the items in the needed variations and make a report to the pricing dept.

2- Make the breakdown for the items and make the final price for each item.  

3- Make a Variation Order Request (V.O.R) to the owner.

 

4- Receive the confirmation and send it to site to start the works.

Ghalib Humaidi
by Ghalib Humaidi , Cost Consultant / Manager , The House of Costs

Dear All ,

Commercially the so called variation orders are dealt in a very sensitive case  level  for the following reasons :

1/ we need to have forecast of the final contract sum , in order to compare it with the added contingencies to the projected budget , so that not toexceed what been approved fund in the  project charter  agreed by Board .

2 / reciting the Risk Allocation on the parties ( Owner , Developer ), and time reflection on the Baseline scheduled program .

3/ Reviewing with the ( constructor ) both the contract allowable costs and the allocable costs .

4/a Variation order by definition represent any changes over the original project requirements , thus a basic function to be assessed is to revise those new requirements against the original scope , and for performing this exercise , better to check against the followings :

a- the new requirements Versus the Original requirements ( Scope of works ).

b- the  structured break down ( Methode of work) relates to those new requirements versus the original Method statements for the work activities .

c-Grade of Specifications  required Vs. the original One .

 

5/ prepare spread sheet of comparisons to compare the integrated / segreggated Costs for those new works with the original's , as to be presented in Additions Versus Omissions , in order to reflect the Net costs of the new Changes .

6/ the Consultant ( Engineer ) is typically performing the approval for the Specifications and the conformance with method of Work , so his input as a single source of information is reliable  .

7/ Once it is agreed to issue a variation order based on  approved changes from Engineer , then the subject matter requires to discuss and agree relevant issues with the Constructor such as ( to be negotiated ):

7.1/ Base rates of the items to be adopted in the estimate .

7.2/ Application of any discount given by contract on those Variation Orders .

7.3/ Application of Contract Terms & Conditions on those V.O's .

7.4/ Time impact for those V.O's   .

 

In the Other side of the Coin , there shall be a neccissaty for  many Communication Correspondences with the parties pertaining the subject matter for  the contractual proceedings .

 

furthermore the a/m proceedures are convenient for all types of trades ( construction , purchases , etc.. ) .

 

Kind regards ,

 

Ghalib Humaidi

Mohamed El Tablawy
by Mohamed El Tablawy , Senior Quantity Surveyor & Contract Administrator , SH Architects - Saleh Hamdy

Make a log (Scheduled) to explain the date for issue to the client and issue price and approved price.