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

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

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.

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

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