Variation Order Procedure 1r11q
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Construction Variation Order Procedure Document No.: PRA-00002-PP-07-PRM-02
CONTENTS: 1. 2. 3. 4. 5. 6. 7.
ATTACHMENTS:
PURPOSE SCOPE DEFINITIONS RESPONSIBILITIES INSTRUCTIONS REFERENCES ATTACHMENTS 7.10
7.1 Employer Driven Variations Process Map 7.2 Contractor’s Variations by SWI Process Map 7.3 Contractor Request For Variation Process Map 7.4 Construction Variation Proposal Form 7.5 Construction Variation Order Form 7.6 Variation Order Log 7.7 Site Work Instruction (SWI) Form 7.8 PMC Request for Variation Order (PMRVO) Form 7.9 Contractor's Request for Variation Order Form Project Manager’s Instruction (PMI) Form
Reason for issue
Status
IFR Issued for Review
IFI Issued for Information
PFC Preliminary for Comment
A
IFA Issued for Approval
IFU Issued for Use
AWC Approved with Comments
SS
Approved Superseded
DOCUMENT HISTORY
Sign:
Project Procedures
Sign:
Sign:
Construction Variation Order Procedure Page 1 of 20
PRA-00002-PP-07-PRM-02 Rev.A
A
IFR
REV. NO.
REASON FOR ISSUE
28 Apr 2014 Date
PFC CHANGES
STATUS
Project Procedures
Sign:
Sign:
PREPARED BY HILL QA/QC
REVEIWED BY HILL PM
Sign: APPROVED BY KCT Qatar
Construction Variation Order Procedure Page 2 of 20
PRA-00002-PP-07-PRM-02 Rev.A
1. PURPOSE The purpose of this procedure is to map-out the process of approvals and documentation required to issue Construction Variation Order (CVO) to Contractors due to Change Requests initiated by the Employer, Hill (as the Project Management Consultant), the Supervision Consultant, or Contractor in connection with the design and construction and/or installation works on the IFRANE PALACE Project. 2. SCOPE This procedure applies to all construction contracts initiated by the Employer for construction and/or installation works on the IFRANE PALACE Project. This procedure applies to all construction contracts where the Contractor’s scope of works requires changing, including drawing changes, specification changes and changes to the method and sequence of working. It shall also apply to the expenditure of Provisional Sums. Changes as a result of Confirmation of Verbal Instructions (CVIs) and Requests for Information (RFIs) having a time and/or cost impact shall be subject to Employer’s Approval via this procedure. 3. DEFINITIONS
OWNER
INITIATOR
PARTICIPANT
SIGNATORY
APPROVER
INFORMED
EMPLOYER’S REPRESENTATIVE HILL PROJECT DIRECTOR HILL CONTRACTS MANAGER HILL PROJECT CONTROLS MANAGER HILL DESIGN MANAGER / CONSTRUCTION MANAGER DESIGN CONSULTANT SUPERVISION CONSULTANT (ENGINEER) COST CONSULTANT CONTRACTOR
PROCESS OWNER
The person in Hill or the other company responsible for ensuring the procedure is implemented, maintained and controlled
PARTICIPANT
The person in Hill or another company who is or may be implementation of the procedure
INITIATOR / ORIGINATOR
The person in Hill or the other company who starts the process
involved in
APPROVER
The person holding final authority for signature for approval of the product of the process
SIGNATORY
A person who signs for approval on behalf of the Participant’s Organization
INFORMED
A person who receives a copy of the information and is not otherwise involved in the process. All the above parties are deemed to be informed.
4. RESPONSIBILITIES Employer’s Representative
The Employer’s Representative shall be responsible for coordinating the approval of variation orders within the Employer’s organization. The Employer shall be responsible for making the final decision for approval and issue of variation orders.
Hill Project Manager
Hill Project Manager shall monitor this procedure to ensure that it is properly implemented. Hill Project Manager shall be responsible for coordinating the approval of variation orders. Any proposed changes to a Contractor’s scope of work shall be subject to the approval of the Employer’s Representative.
Hill Contracts Manager
Hill Contracts Manager has functional responsibility for all contract variation istration. Hill Contracts Manager shall make recommendation to Hill Project Director on the merit of a variation.
Hill Design Manager Hill Design Manager shall be responsible for notifying the Contracts Manager and Project Director of any changes made to the original design during the construction stage. Hill Project Controls Manager
Hill Project Controls Manager shall be responsible for reviewing and advising the Hill Contracts Manager and Project Director on all matters associated with the time / schedule elements of instructions and changes.
Cost Consultant
The Cost Consultant shall advise the Project Management Consultant’s Contracts Manager on all matters associated with the cost of instructions and changes.
Supervision Consultant
The Supervision Consultant shall be responsible for review of cost & time proposal of contractors and coordinating the approval of variation orders. The Supervision Consultant shall be empowered to issue authorized Site Works Instruction and approved VOs to a Contractor’s scope of work. Any proposed changes to a Contractor’s scope of work, including those arising from Confirmation of Verbal Instructions (CVIs) and Requests for Information (RFIs), shall be subject to the approval of
th e E m pl o y e r’ s R e pr e s e nt at iv e.
5. INSTRUCTIONS Action by GENERAL All communication between PMC, Supervision Consultant and the Contractor relevant to this procedure, shall follow the established Project Communication Plan and the approved Project Management Plan (PMP).
5.1
EMPLOYER DRIVEN VARIATIONS PROCEDURE (DURING CONSTRUCTION)
The process below is to be used for variations initiated by the Employer which results into a change of scope to the contractor. All contractual documents sent out by Hill Project Team shall be sent through Hill Project Manager and Document Controller. 5.1.1
The Employer-driven variation process is initiated by Employer’s Representative issuing a Letter of Instruction to Hill regarding additional Scope of Works.
5.1.2
On receipt of the Letter of Instruction from the Employer’s Representative, Hill Project Manager shall forward copy of the Letter to Hill Contracts Manager, Hill Design Manager / Construction Manager, Hill Project Controls Manager and Cost Consultant. Hill Project Manager shall arrange a meeting for attendance by the Employer, Hill Contracts Manager, Hill Design Manager / Construction Manager, Hill Project Controls Manager and Cost Consultant to discuss the Construction Variation.
5.1.3
Hill Project Manager together with Hill Contracts Manager, Project Controls Manager, Design Manager / Construction Manager and Cost Consultant convene in the meeting with Employer’s Representative to discuss the Construction Variation Proposal.
5.1.4
Hill Contracts Manager in liaison with Cost Consultant, Employer’s Cost Representative and Hill Design Manager shall prepare proposed Scope of Works (RFQ where applicable) and rough estimate (by Cost Consultant) based on BOQ rates and forward to Employer’s Representative via Hill Project Manager.
5.1.5
After review of the proposed Construction Variation and relevant documentation, Employer’s Representative should issue approval in principle by letter and return to Hill. If the proposed Construction Variation is rejected, it should be returned to Hill and the Cost Consultant for revision and Section 5.1.4 shall follow.
5.1.6
On receip t of the letter indica ting appro val in princi ple of the
Employer’s Rep.,
Hill Project Manager, Hill Contracts Mgr Hill Design Mgr / Construction Mgr, Hill Project Controls Manager, Cost Consultant, Employer
Hill Contracts Manager, Hill Design Manager, Hill Project Manager, Employer Employer’s Rep.
Hill Project Manager, Contracts Mgr, PCM Design Mgr / Construction Mgr, Cost Consultant Employer
proposed Construction Variation, Hill Project Manager with assistance from Hill Contracts Manager shall instruct the Design Consultant and issue the necessary documentation to enable technical documents to be prepared. Copy of the instruction and documentation package shall be copied to Hill Project Controls Manager and Hill Design Manager. 5.1.7
5.1.8
5.1.9
On receipt of instructions from Hill, Design Consultant shall prepare technical documents and submit to Hill. On receipt from Hill Project Manager / Document Controller, Hill Contracts Manager, Hill Design Manager / Construction Manager and Hill Project Controls Manager shall review the technical documents from the Design Consultant. Hill Contracts Manager shall complete a Construction Variation Proposal Request (CVPR) using Form PRA-0002-PP-07-04FM and forward to Hill Project Manager for issue to Contractor with request for time and cost proposal. A copy shall also be forwarded by Hill to the Supervision Consultant. On receiving the CVPR from Hill, Contractor shall prepare time and cost estimate with completed CVPR form (Ref. PRA0002- PP-07-04-FM) and forward it to Hill with copy to the Supervision Consultant for negotiation / clarification. Hill Project Manager / Document Controller shall distribute Contractor’s time and cost estimates to Hill Contracts manager, Hill Project Controls Manager, Hill Design Manager / Construction Manager and the Cost Consultant.
5.1.10 After receiving the completed CVPR from the Contractor via Hill Project Manager / Document Controller, Hill Contracts Manager in coordination with the Cost Consultant, Hill Project Controls Manager and Hill Design Manager / Construction Manager shall review the completed CVPR with documentation. Hill, Cost Consultant, Supervision Consultant and the Employer’s Representative shall meet with the Contractor if necessary to reconcile any differences and negotiate an agreed adjustment. 5.1.11 After conclusion of meetings and negotiations, Hill Contracts Manager shall prepare the draft Construction Variation Order (CVO) (Form PRA-0002-PP-07-05-FM), sign and obtain signature from Cost Consultant, Hill Project Manager and Contractor via the Document Controller. Hill Contracts Manager shall log the CVO using CVO Log form Ref. PRA0002-PP-07-06-LG.
Hill Project Manager, Hill Contracts Mgr
Design Consultant
Hill Contracts Mgr Hill Design Mgr. / Construction Mgr, Hill Project Controls Manager, Hill Project Manager / Document Controller
Contractor, Hill Project Manager / Document Controller
Hill Contracts Mgr Hill Design Mgr / Construction Mgr, Hill Project Manager, Cost Consultant, Employer
Hill Contracts Manager, Hill Document Controller
5.1.12 On satisfactory review, Hill Project Manager shall forward draft Construction Variation Order to the Employer for approval after receipt from Hill Contracts Manager. 5.1.13 Employer’s Representative in coordination with Employer Senior Management (SM) should initiate and organize Employer internal process for approval signature.
Hill Project Manager
Employer’s Rep., Employer SM
NOTE: Employer Internal decision to be within 14 days or actual contractual time restraints. 5.1.14 After obtaining decision signature, the Employer’s Representative should distribute internally and return the CVO to Hill.
5.2
Employer’s Rep.
5.1.15 Upon receipt, Hill Project Manager shall issue the approved CVO to the Contractor with copy to Hill Contracts Manager, Cost Consultant and Supervision Consultant.
Hill Project Manager
5.1.16 Hill Contracts Manager shall update the variations log (Form PRA-0002-PP-07-06-FM-LG) and variations summary. Summary of variations is to be provided to Hill Project Controls Manager for issue via Hill Project Manager to Employer in the Monthly Report.
Hill Contracts Manager, Hill Project Controls Manager, Hill Project Manager
CONTRACTORS' VARIATIONS PROCEDURE BY SWI
The process below is referred to as the Site Work Instruction (SWI) Method and is to be used for Site Works Instruction of items which are necessary to avoid abortive works. 5.2.1
The process is initiated by the Supervision Consultant who prepares the Site Works Instruction (SWI) using Form Ref. PRA-0002-PP-07-07-FM (or the Supervision Consultant’s form approved by the Employer / PMC) with attachments and forwards it to Hill Project Manager / Document Controller for further processing by Hill Contracts Manager and the Cost Consultant.
5.2.2
Upon receiving the copy of SWI, Hill Contracts Manager and Cost Consultant shall prepare initial estimate of cost and time (with assistance from Hill Project Controls Manager) and forward it together with the SWI to Hill Project Manager for review and signature. Hill Project Manager shall review and forward the SWI together with attached estimate to Employer for approval to proceed.
5.2.3
Upon satisfactory review, Employer’s Representative should sign for approval to carry out the works.
5.2.4
Following approval by the Employer, Hill Project Manager shall issue the approved SWI to Contractor with copy to Supervision Consultant, Cost Consultant and Hill Contracts Manager.
5.2.5
On receipt of the approved SWI, Contractor shall carry out the work tasks, prepare time and cost estimates and then forward it to the Supervision Consultant who shall then forward it to
Hill after satisf actory review . Hill Projec t Mana ger / Docu ment Contr oller shall distrib ute the Contr actor’ s time and
cost estimates to Hill Contracts Manager and the Cost Consultant.
Supervision Consultant
Hill Contracts Manager, Hill Project Controls Manager, Hill Project Manager, Cost Consultant
Employer’s Rep.
Hill Project Manager
Contractor, Supervision Consultant, Hill Project Manager / Document Controller
5.2.6
After satisfactory review by Hill Contracts Manager, Cost Consultant and Hill Project Controls Manager, Hill Project Manager shall forward the evaluation to the Employer’s Representative for review.
Hill Project Manager, Hill Contracts Mgr Hill PCM, Cost Consultant
5.2.7
Hill Contracts Manager shall convene a meeting with Contractor and Employer’s Representative, with participation of Hill Project Controls Manager, Cost Consultant and Supervision Consultant to finalize the CVO proposal.
Hill Contracts Mgr Hill PCM, Cost Consultant, Supervision Consultant, Employer’s Rep., Contractor
5.2.8
Following conclusion of the meeting and where there is a valid variation, Hill Contracts Manager shall draft a Construction Variation Order (using Form PRA-0002-PP-07-05-FM), sign it and obtain signature from Hill Project Manager, Supervision Consultant and Contractor via Hill Document Controller.
Hill Contracts Mgr Hill Project Manager, Supervision Consultant, Contractor
5.2.9
Hill Project Manager shall forward the signed draft Construction Variation Order to the Employer for approval.
Hill Project Manager
5.2.10 Employer’s Representative in coordination with Employer Senior Management should initiate and organize Employer internal process for approval signature.
Employer’s Rep., Employer SM
NOTE: Employer Internal decision to be within 14 days or actual contractual time restraints. 5.2.11 After obtaining decision signature, the Representative should return the CVO to Hill.
Employer’s
5.2.12 Hill Project Manager shall issue the approved CVO to the Contractor with copy to Hill Contracts Manager, Cost Consultant and Supervision Consultant. 5.2.13 Employer’s Representative should arrange for filing of the memo. 5.2.14 Hill Contracts Manager shall update the variations log (Form PRA-0002-PP-07-06-FM-LG) and variations summary. Summary of variations is to be provided to Hill Project Controls Manager for issue via Hill Project Manager to Employer in the Monthly Report.
5.3
CONTRACTORS' REQUEST FOR VARIATION PROCEDURE
When FIDIC rules applies, Contractor's Variations request arises if an instruction from the Supervision Consultant Engineer constitutes a Variation as per Clause 3.3 of the Conditions of Contract for Construction, FIDIC 1999.
Employer’s Rep.
Hill Project Manager
Employer’s Rep.
Hill Contracts Mgr Hill Project Controls Manager, Hill Project Manager
All Variations must be approved by the Employer, prior to commencement of Work. Unless otherwise agreed with the Employer,
for all Variations please refer to Clause 13 of the Conditions of Contract for Construction, FIDIC 1999. The variation process may be initiated by the following unless the instruction or request is to expedite the works: a. Project Manager's Instruction (PMI) (Form PRA-0002-PP-0917- FM) issued to the Supervision Consultant Engineer which may have additional time and cost implications to the Contractor. b. Request for Variation Order issued from the Contractor. 5.3.1
The variation process is initiated, by Contractor submitting a Contractor’s Request for Variation Order (CRVO) (Form PRA0002-PP-07-10-FM) to Hill (PMC) with copy to the Supervision Consultant for the reasons stated above in items a or b.
5.3.2
On receipt, the Supervision Consultant shall review and assess the request and forward it to Hill. Upon review, Hill Project Manager / Document Controller shall forward the CRVO to Hill Contracts Manager and the Cost Consultant for review.
5.3.3
Hill Contracts Manager shall convene a meeting with Employer's Representatives with participation of Hill Project Manager, Hill Design Manager / Construction Manager, Hill Project Controls Manager, Cost Consultant and Design Consultant (where applicable) to discuss VO proposal.
5.3.4
Hill Contracts Manager with assistance from Cost Consultant, Hill Project Controls Manager and Hill Design Manager / Construction Manager shall review, assess request and if acceptable completes CRVO Form (Ref. PRA-0002-PP-0710- FM) along with PMC Request for Variation Order (PMRVO) form (Ref. PRA-0002-PP-07-08-FM). The CRVO and PMRVO shall be forwarded to the Employer for approval through Hill Project Manager / Document Controller. If rejected, Hill Contracts Manager shall return the CVRO Form to Contractor through Hill Document Controller and Supervision Consultant.
5.3.5
Employer’s Representative should review the CRVO including PMRVO and indicate approval in principle by letter (or an agreed means) and return to Hill. If rejected, the CVRO is to be returned to Hill for further forwarding to Contractor as in Item 5.3.4 above.
5.3.6
Following approval of the PMRVO by the Employer and receipt from Hill Project Manager, Hill Contracts Manager shall complete a Construction Variation Proposal Request
(CVP R) Form (Ref. PRA0002PP0704FM) and forwar d it to Hill Projec t Mana ger who shall then revie w and issue it to Contr actor with reque st for time and cost propo sal with copy to the Super vision Cons ultant and Desig n Cons ultant via Hill Docu ment Contr oller.
Contractor
Supervision Consultant, Hill Project Manager / Document Controller
Hill Contracts Manager, Hill PM, Hill Design Mgr, Construction Mgr, Project Cont. Mgr, Design Consultant, Employer
Hill Contracts Mgr Cost Consultant, Hill Project Controls Manager, Hill Design Mgr / Construction Mgr, Hill Project Manager
Employer’s Rep., Hill Project Manager
Hill Contracts Manager, Hill Project Manager / Hill Document Controller
Contractor
Hill Contracts Manager, Hill PCM, Hill Design Mgr /
5.3.7
On receiving the CVPR, Contractor shall prepare time and cost evaluation with completed CVPR form (Ref. PRA-0002PP-07- 04-FM) and forward it to Hill via the Supervision Consultant Engineer.
5.3.8
Hill Contracts Manager with assistance from the Cost Consultant, Hill Project Controls Manager and Hill Design Manager / Construction Manager shall review the completed CVPR with documentation and forward via Hill Project Manager to Employer for review.
5.3.9
Hill Contracts Manager shall convene a meeting with Contractor and Employer’s Representative, with participation of Hill Project Manager, Hill Project Controls Manager, Hill Design Manager / Construction Manager, Supervision Consultant and Design Consultant to finalize the CVO proposal.
5.3.10 Following conclusion of the meeting, Hill Contracts Manager shall draft Construction Variation Order (using Form PRA0002-PP-07-05-FM), sign it and obtain signature from Hill Project Manager, Cost Consultant and Contractor via Document Controller. 5.3.11 Hill Project Manager shall forward the signed draft Construction Variation Order to Employer’s Representative for approval. 5.3.12 Employer’s Representative, in coordination with Employer Senior Management should initiate and organize Employer internal process for approval signature.
Construction Mgr. Hill Project Manager Hill Contracts Manager, Hill PM, Hill PCM, Hill Design Mgr., Supervision Consultant, Design Consultant, Employer’s Rep. Hill Contracts Manager, Hill Project Manager, Cost Consultant, Contractor
Hill Project Manager
Employer’s Rep., Employer SM
Employer PD, Hill Project Manager
NOTE: Employer’s Internal decision to be within contractual time restraints. 5.3.13 After obtaining decision signature, the Employer’s Representative should return the CVO to Hill, and Hill Project Manager shall issue the CVO to the Contractor with copy to Hill Contracts Manager, Cost Consultant, Supervision Consultant and Design Consultant (where required).
Employer
5.3.14 Employer's Representative should arrange for Employer Project Controls Manager to file memo upon receipt. 5.3.15 Hill Contracts Manager shall update the variations log and variations summary (Form PRA-0002-PP-07-06-FM-LG). Summary of variations is to be provided to Hill Project Controls Manager for issue via Hill Project Manager to Employer in the Monthly Report.
Hill Contracts Manager, Hill Project Controls Manager, Hill Project Manager
6. REFERENCES 1) KCT-IMS-CM-3707 Rev.0 , Project Claims, Variations and Disputed Items 2) Hill Intl PRA-00002-PP-17-PRM-02, Claims, Change & Extension of Time Procedure
7. ATTACHMENTS 7.1
Employer Driven Variations to Contractors Process Map
Variations by SWI Process Map Variation by Contractor Request Process Map Variation Proposal Form Variation Order Form Variation Order Log Site Work Instruction (SWI) Form PMC Request for Variation Order (PMRVO) Form Contractor's Request for Variation Order (CRVO) Form Project Manager’s Instruction (PMI) Form
7.1 Employer Driven Variations to Contractors Process Map EMPLOYER DRIVEN VARIATIONS PROCEDURE (during Construction)
NOTE: This is a generic procedure and is to be adapted to comply with the project specific requirements CC CONS ENG CONT Input / Output CONSULTANT
X X
X
Attend meeting
Issue Optional
RFQ Method To be used for variations initiated by the Employer which are a change of scope to the contractor
S
I
1. Employer's Representative issues Letter of Instruction to Hill regarding additional Scope of Works.
P
2. Hill Project Director forwards copy of Letter to Hill Contracts Manager, Design Manager and Project
C
Controls Manager. Hill PD arranges meeting for
Design Consultant
I
Cost Consultant
Decide
Contracts Manager
D
Review/Assist
Design Manager + team/ Construction Manager
Receive Original/ Copy
A
Project Controls Manager
O/ C
S Start
Perform
Project Director / Document Controller
R/
P
Senior Management (SM) Employer
KEY
Contractor
Insert Client Logo Here
Supervision Consultant Engineer
EMPLOYER
Letter of Instructio
C
C
C
X
X
X
P
A
P
attendance by relevant parties to discuss Construction Variation. 3. Hill convenes a meeting with Employer's Representative to discuss
X
X
Construction Variation Proposal. R
4. Hill Contracts Manager in liaison with the Cost Consultant, Employer Cost
Proposed RFQ + attachments (rough estimates)
Representative and Hill Design Manager / Construction Manager, prepares proposed Scope of Works (RFQ where applicable) and rough
Reject
I
estimate (by CC) based on BOQ rates, and forwards to Employer's Representative
Reject
via Hill Project Director.
D
5. Employer's Representative approves in principle by letter and returns to Hill. If rejected, returned to Hill and Cost Consultant for revision.
I
A
6. Hill Project Director instructs and issues to the Design Consultant the
A
necessary documentation to enable preparation of technical documents. C
C Technical Document s
7. Design Consultant prepares technical documents and submits toHill.
8. Hill Contracts Manager, Design Manager / C
Construction Manager, & Project Controls Manager
R
P
R
Construction Variation Proposal Request
review technical documents from Design Consultant. Hill Contracts Manager completes a I
Construction Variation Proposal Request (Form CCC-NNN-PP-07-04-FM) and forwards to Hill
C
Project Director for issue to Contractor with request for time and cost proposal.
P
Copy is also forwarded by Hill to the Supervision Consultant. C
C
9. Contractor prepares time & cost evaluation with completed CVPR form
Construction Variation Proposal Request
(Ref. CCC-NNN-PP-07-04-FM) and forwards to Hill with copy to the Supervision Consultant. Hill Project Director forwards to relevant
R
R
X
X
R
P
R
P
parties. 10. Hill, Cost Consultant and Employer analyse the proposal and meet with the Contractor if necessary to reconcile any differences and negotiate an agreed adjustment. 11. Hill Contracts Manager draft Construction Variation Order (CVO) (Form CCC-NNN-PP-07-05-FM), signs & obtain signature from Cost Cons.,
X
X
X Draft CVO
P C
Hill Project Director and Contractor via Document Controller. Hill Contracts Manager logs the CVO on CVO Log form (Ref.CCC-NNN-PP-07-06-LG).
P
12. Hill Project Director forwards draft Construction Variation Order to the Employer for approval after satisfactory review.
P
13. Employer's internal process for signature D NOTE: Employer's Internal decision to be within 14 days
X
P
14. After signature, the Employer's Representative distributes internally
P
Memo
and returns the CVO to Hill. 15. Hill Project Director issues approved CVO to the Contractor with copy
I
to Hill Contracts Manager, Cost Consultant and Supervision Consultant.
P
16. Hill Contracts Manager updates the variations log (Form CCC-NNN-PP-07-06-LG) and variations summary. Summary to be issued to Employer in the Monthly Report.
Approved CVO
C
C
C
C
O
P
I
Document No: CCC-NNN-PP-07-01-PM Rev.1 Revision Date: 12-Oct-2009
Project Director / Document
7.2 Variations by SWI Process Map
X X
X
D
Decide
A
I
Attend meeting
Issue Optional
SWI Method To be used for Site Works Instruction for items which are
CONT
Input / Output
Contractor
Cost Consultant
R/ Review/Assist
ENG
Supervision Consultant Engineer
Receive Original/ Copy
Start
CC
Project Controls Manager
O/ C
S
Perform
Hill (PMC)
Contracts Manager
P
Employer's Representative
KEY
Senior Management Employer
EMPLOYER
Insert Client Logo Here
Controller
This is a generic procedure and is to be adapted to comply with the project specific requirements CONTRACTORS' VARIATIONS PROCEDURE NOTE: by SITE WORKS INSTRUCTION (SWI)
S
necessary to avoid abortive works. 1.
Initiated by The Supervision Consultant Engineer who prepares
P
O
the documents and forwards to Hill Project Director / Document Controller for further processing by Hill Contracts Manager & Cost Consultant. 2.
Hill Contracts Manager & Cost Consultant prepares initial estimate P
of cost and time (with assistance from Hill Project Controls Manager) and forwards together with Site Works Instruction (SWI) using Form
A
P
SWI
R
Ref. CCC-NNN-PP-07-07-FM to Hill Project Director for review and signature. Hill Project Director forwards SWI together with estimate attachments to Employer for approval to proceed. 3.
Employer signs for approval to carry out the works.
4.
Following approval, Hill Project Director issues approved SWI
Rejected, SWI Aborted
D I
to Contractor with copy to Supervision Consultant, Cost Consultant and Hill Contracts Manager. 5.
C
C
C
O
Contractor carries out the work and prepares time & cost P
estimates and forwards to Supervision Consultant who then C
reviews and forwards to Hill. 6.
R
Hill in coordination with Cost Consultant reviews & forwards to Employer for review.
7.
8.
Hill meets with Contractor, Cost Consultant, Supervision Consultant & Employer Representative to finalize documents.
R
P
R
P
X
X
X
X
P
A
P
Where there is valid variation, Hill Contracts Manager in coordination with Cost Consultant drafts Construction Variation Order (Form CCC-NNN-PP-07-05-FM), signs & obtain signature from Hill Project Director, Supervision Consultant and Contractor via Hill Document Controller.
9.
C
X
Draft CVO
P
Hill Project Director forwards draft Construction Variation Order to the Employer for approval.
X
P
P C
C
10. Employer's internal process for signature NOTE: Employer's Internal decision to be within 14 days 11. After signature, the Employer Representative returns the CVO to Hill.
D
Memo
P
12. Hill Project Director issues approved CVO to the Contractor Consultant. 13. Employer Representative arranges for filing of memo.
C
C
C
O
P
14. Hill Contracts Manager updates the variations log
P
(Form CCC-NNN-PP-07-06-LG) and variations summary. Summary to be issued to Employer in the Monthly Report. See related process map CCC-NNN-PP-07-02-PM for Employer Driven Variations to Contractors
Approved CVO
I
with copy to Hill Contracts Manager, Cost Consultant and Supervision
P
P
I C Document No: CCC-NNN-PP-07-03-PM Rev.1 Revision Date: 12-Oct-2009
7.3 Variation by Contractor Request Process Map
NOTE: This is a generic procedure and is to be adapted to comply with the project specific requirements CC SC CONS CONT Output
X
I
Attend meeting
Issue Optional
When FIDIC rules applies, Contractor's Variations request arises if an Instruction from the Supervision Consultant Engineer constitutes a Variation as per Clause 3.3 of the Conditions of Contract for Construction, FIDIC 1999 All Variations must be approved by The Employer prior to commencement of Work For all Variations please refer to Clause 13 of the Conditions of Contract for Construction, FIDIC 1999 The Variation process may be initiated by the following unless the instruction or
Design Consultant
Decide
Cost Consultant
D
Contractor
X X
Copy
Review/Assist
Supervision Consultant Engineer
Receive Original/
A
Design Manager
O/ C
R/
Contracts Manager
Perform
Senior Management Employer's
S Start P
Employer's Representative
KEY
PMC (Hill)
Project Director / Project Manager Document Controller
EMPLOYER
Insert Client Logo Here
Project Controls Manager / Planning & Scheduling Engineer
CONTRACTORS' REQUEST FOR VARIATION PROCEDURE
S
request is to expedite the works: a. Project Manager's Instruction (PMI) issued to the Contractor which may have additional time & cost implications to the Contractor. (Form CCC-NNN-PP-09-17-FM) b. Issue from the Contractor of a request for a Variation Order. 1. Process initiated by Contractor requesting Variation Order (Form CCC-NNN-PP-07-10FM) for the reasons stated above in items a or b, to Supervision Consultant Eng'r and
2. On receipt, Supervision Consultant reviews and assesses request and forwards
P
C
to Hill Contracts Manager and Cost Consultant via Hill Document Controller.
C 3. Hill convenes a meeting with The Employer's Representative, Design Consultant
Contractor Variation Request
P
PMC (Hill)
and the X
Reject
A
X
X
X
X
P
A
A
A
X
X
Cost Consultant to discuss VO proposal. 4. Hill reviews, assesses request and if accepted completes Form
C
CRVO & PMRVO
CCC-NNN-PP-07-10-FM along with completed form CCC-NNNPP-07-08-FM (PMC Request for Variation Order) and issues it to Employer for approval.
Reject
R
If rejected, Hill returns Form CCC-NNN-PP-07-10-FM to Contractor. Reject
5. Employer approves in principle by letter and returns to Hill. If rejected, D
returned to Hill to be further forwarded to Contractor as in Item 4 above.
6. Following approval of the PMRVO by the Employer, Hill Contracts Manager completes aI
P
Construction Variation Proposal Request (CVPR)
Construction Variation Proposal Request (Form CCC-NNN-PP-07-04-FM) and forwards to Hill Project Director who issues to Contractor with request for time and cost proposal with copy to Supervision Consultant and Design Consultant.
C C
7. Contractor prepares time & cost evaluation with completed form CCC-NNN-PP-07-04-
C
C
O P
Completed CVPR + documents
FM and forwards to Hill via Supervision Consultant. 8. Hill and Cost Consultant reviews & forwards to Employer for review.
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R 9. Hill meets with Contractor, Supervision Consultant, Cost Consultant, Design Consultant and Employer to finalise.
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X
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10. Hill Contracts Manager draft Construction Variation Order (Form CCC-NNN-PP-07-05FM), signs & obtains signature from Hill Project Director and Contractor via Document Controller.
Draft CVO
11. Hill Project Director forwards signed draft Construction Variation Order to Employer.
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12. Employer internal process for signature NOTE: Employer Internal decision to be within contractual time restraints
13. After signature, the Employer's Representative returns the CVO to Hill, and Hill Project Director issues to the Contractor with copy to Hill Contracts Manager, Cost Consultant, Supervision Consultant and Design Consultant.
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14. Employer's Representative arranges for Employer Project Controls Manager to file memo. P
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Memo Approved CVO
P 15. Hill Contracts Manager updates the variations log and variations summary (Form CCC-NNN-PP-07-06-FM-LG). Summary to be issued to Employer in the Monthly Report.
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See related process map CCC-NNN-PP-07-01-PM for Variations to Designers See related process map CCC-NNN-PP-07-02-PM for Employer Driven Variations See related process map CCC-NNN-PP-07-03-PM for Variations by SWI
Document number: CCC-NNN-PP-07-09-PM Rev.1 Revision Date: 12-Oct-2009
7.4 Variation Proposal Form
7.5 Variation Order Form
7.6 Variation Order Log
7.7 Site Work Instruction (SWI) Form
7.8 PMC Request for Variation Order (PMRVO) Form
7.9 Contractor's Request for Variation Order (CRVO) Form
7.10
Project Manager’s Instruction (PMI) Form
Project Procedures
Construction Variation Order Procedure Page 20 of 20
PRA-00002-PP-07-PRM-02 Rev.A
CONTENTS: 1. 2. 3. 4. 5. 6. 7.
ATTACHMENTS:
PURPOSE SCOPE DEFINITIONS RESPONSIBILITIES INSTRUCTIONS REFERENCES ATTACHMENTS 7.10
7.1 Employer Driven Variations Process Map 7.2 Contractor’s Variations by SWI Process Map 7.3 Contractor Request For Variation Process Map 7.4 Construction Variation Proposal Form 7.5 Construction Variation Order Form 7.6 Variation Order Log 7.7 Site Work Instruction (SWI) Form 7.8 PMC Request for Variation Order (PMRVO) Form 7.9 Contractor's Request for Variation Order Form Project Manager’s Instruction (PMI) Form
Reason for issue
Status
IFR Issued for Review
IFI Issued for Information
PFC Preliminary for Comment
A
IFA Issued for Approval
IFU Issued for Use
AWC Approved with Comments
SS
Approved Superseded
DOCUMENT HISTORY
Sign:
Project Procedures
Sign:
Sign:
Construction Variation Order Procedure Page 1 of 20
PRA-00002-PP-07-PRM-02 Rev.A
A
IFR
REV. NO.
REASON FOR ISSUE
28 Apr 2014 Date
PFC CHANGES
STATUS
Project Procedures
Sign:
Sign:
PREPARED BY HILL QA/QC
REVEIWED BY HILL PM
Sign: APPROVED BY KCT Qatar
Construction Variation Order Procedure Page 2 of 20
PRA-00002-PP-07-PRM-02 Rev.A
1. PURPOSE The purpose of this procedure is to map-out the process of approvals and documentation required to issue Construction Variation Order (CVO) to Contractors due to Change Requests initiated by the Employer, Hill (as the Project Management Consultant), the Supervision Consultant, or Contractor in connection with the design and construction and/or installation works on the IFRANE PALACE Project. 2. SCOPE This procedure applies to all construction contracts initiated by the Employer for construction and/or installation works on the IFRANE PALACE Project. This procedure applies to all construction contracts where the Contractor’s scope of works requires changing, including drawing changes, specification changes and changes to the method and sequence of working. It shall also apply to the expenditure of Provisional Sums. Changes as a result of Confirmation of Verbal Instructions (CVIs) and Requests for Information (RFIs) having a time and/or cost impact shall be subject to Employer’s Approval via this procedure. 3. DEFINITIONS
OWNER
INITIATOR
PARTICIPANT
SIGNATORY
APPROVER
INFORMED
EMPLOYER’S REPRESENTATIVE HILL PROJECT DIRECTOR HILL CONTRACTS MANAGER HILL PROJECT CONTROLS MANAGER HILL DESIGN MANAGER / CONSTRUCTION MANAGER DESIGN CONSULTANT SUPERVISION CONSULTANT (ENGINEER) COST CONSULTANT CONTRACTOR
PROCESS OWNER
The person in Hill or the other company responsible for ensuring the procedure is implemented, maintained and controlled
PARTICIPANT
The person in Hill or another company who is or may be implementation of the procedure
INITIATOR / ORIGINATOR
The person in Hill or the other company who starts the process
involved in
APPROVER
The person holding final authority for signature for approval of the product of the process
SIGNATORY
A person who signs for approval on behalf of the Participant’s Organization
INFORMED
A person who receives a copy of the information and is not otherwise involved in the process. All the above parties are deemed to be informed.
4. RESPONSIBILITIES Employer’s Representative
The Employer’s Representative shall be responsible for coordinating the approval of variation orders within the Employer’s organization. The Employer shall be responsible for making the final decision for approval and issue of variation orders.
Hill Project Manager
Hill Project Manager shall monitor this procedure to ensure that it is properly implemented. Hill Project Manager shall be responsible for coordinating the approval of variation orders. Any proposed changes to a Contractor’s scope of work shall be subject to the approval of the Employer’s Representative.
Hill Contracts Manager
Hill Contracts Manager has functional responsibility for all contract variation istration. Hill Contracts Manager shall make recommendation to Hill Project Director on the merit of a variation.
Hill Design Manager Hill Design Manager shall be responsible for notifying the Contracts Manager and Project Director of any changes made to the original design during the construction stage. Hill Project Controls Manager
Hill Project Controls Manager shall be responsible for reviewing and advising the Hill Contracts Manager and Project Director on all matters associated with the time / schedule elements of instructions and changes.
Cost Consultant
The Cost Consultant shall advise the Project Management Consultant’s Contracts Manager on all matters associated with the cost of instructions and changes.
Supervision Consultant
The Supervision Consultant shall be responsible for review of cost & time proposal of contractors and coordinating the approval of variation orders. The Supervision Consultant shall be empowered to issue authorized Site Works Instruction and approved VOs to a Contractor’s scope of work. Any proposed changes to a Contractor’s scope of work, including those arising from Confirmation of Verbal Instructions (CVIs) and Requests for Information (RFIs), shall be subject to the approval of
th e E m pl o y e r’ s R e pr e s e nt at iv e.
5. INSTRUCTIONS Action by GENERAL All communication between PMC, Supervision Consultant and the Contractor relevant to this procedure, shall follow the established Project Communication Plan and the approved Project Management Plan (PMP).
5.1
EMPLOYER DRIVEN VARIATIONS PROCEDURE (DURING CONSTRUCTION)
The process below is to be used for variations initiated by the Employer which results into a change of scope to the contractor. All contractual documents sent out by Hill Project Team shall be sent through Hill Project Manager and Document Controller. 5.1.1
The Employer-driven variation process is initiated by Employer’s Representative issuing a Letter of Instruction to Hill regarding additional Scope of Works.
5.1.2
On receipt of the Letter of Instruction from the Employer’s Representative, Hill Project Manager shall forward copy of the Letter to Hill Contracts Manager, Hill Design Manager / Construction Manager, Hill Project Controls Manager and Cost Consultant. Hill Project Manager shall arrange a meeting for attendance by the Employer, Hill Contracts Manager, Hill Design Manager / Construction Manager, Hill Project Controls Manager and Cost Consultant to discuss the Construction Variation.
5.1.3
Hill Project Manager together with Hill Contracts Manager, Project Controls Manager, Design Manager / Construction Manager and Cost Consultant convene in the meeting with Employer’s Representative to discuss the Construction Variation Proposal.
5.1.4
Hill Contracts Manager in liaison with Cost Consultant, Employer’s Cost Representative and Hill Design Manager shall prepare proposed Scope of Works (RFQ where applicable) and rough estimate (by Cost Consultant) based on BOQ rates and forward to Employer’s Representative via Hill Project Manager.
5.1.5
After review of the proposed Construction Variation and relevant documentation, Employer’s Representative should issue approval in principle by letter and return to Hill. If the proposed Construction Variation is rejected, it should be returned to Hill and the Cost Consultant for revision and Section 5.1.4 shall follow.
5.1.6
On receip t of the letter indica ting appro val in princi ple of the
Employer’s Rep.,
Hill Project Manager, Hill Contracts Mgr Hill Design Mgr / Construction Mgr, Hill Project Controls Manager, Cost Consultant, Employer
Hill Contracts Manager, Hill Design Manager, Hill Project Manager, Employer Employer’s Rep.
Hill Project Manager, Contracts Mgr, PCM Design Mgr / Construction Mgr, Cost Consultant Employer
proposed Construction Variation, Hill Project Manager with assistance from Hill Contracts Manager shall instruct the Design Consultant and issue the necessary documentation to enable technical documents to be prepared. Copy of the instruction and documentation package shall be copied to Hill Project Controls Manager and Hill Design Manager. 5.1.7
5.1.8
5.1.9
On receipt of instructions from Hill, Design Consultant shall prepare technical documents and submit to Hill. On receipt from Hill Project Manager / Document Controller, Hill Contracts Manager, Hill Design Manager / Construction Manager and Hill Project Controls Manager shall review the technical documents from the Design Consultant. Hill Contracts Manager shall complete a Construction Variation Proposal Request (CVPR) using Form PRA-0002-PP-07-04FM and forward to Hill Project Manager for issue to Contractor with request for time and cost proposal. A copy shall also be forwarded by Hill to the Supervision Consultant. On receiving the CVPR from Hill, Contractor shall prepare time and cost estimate with completed CVPR form (Ref. PRA0002- PP-07-04-FM) and forward it to Hill with copy to the Supervision Consultant for negotiation / clarification. Hill Project Manager / Document Controller shall distribute Contractor’s time and cost estimates to Hill Contracts manager, Hill Project Controls Manager, Hill Design Manager / Construction Manager and the Cost Consultant.
5.1.10 After receiving the completed CVPR from the Contractor via Hill Project Manager / Document Controller, Hill Contracts Manager in coordination with the Cost Consultant, Hill Project Controls Manager and Hill Design Manager / Construction Manager shall review the completed CVPR with documentation. Hill, Cost Consultant, Supervision Consultant and the Employer’s Representative shall meet with the Contractor if necessary to reconcile any differences and negotiate an agreed adjustment. 5.1.11 After conclusion of meetings and negotiations, Hill Contracts Manager shall prepare the draft Construction Variation Order (CVO) (Form PRA-0002-PP-07-05-FM), sign and obtain signature from Cost Consultant, Hill Project Manager and Contractor via the Document Controller. Hill Contracts Manager shall log the CVO using CVO Log form Ref. PRA0002-PP-07-06-LG.
Hill Project Manager, Hill Contracts Mgr
Design Consultant
Hill Contracts Mgr Hill Design Mgr. / Construction Mgr, Hill Project Controls Manager, Hill Project Manager / Document Controller
Contractor, Hill Project Manager / Document Controller
Hill Contracts Mgr Hill Design Mgr / Construction Mgr, Hill Project Manager, Cost Consultant, Employer
Hill Contracts Manager, Hill Document Controller
5.1.12 On satisfactory review, Hill Project Manager shall forward draft Construction Variation Order to the Employer for approval after receipt from Hill Contracts Manager. 5.1.13 Employer’s Representative in coordination with Employer Senior Management (SM) should initiate and organize Employer internal process for approval signature.
Hill Project Manager
Employer’s Rep., Employer SM
NOTE: Employer Internal decision to be within 14 days or actual contractual time restraints. 5.1.14 After obtaining decision signature, the Employer’s Representative should distribute internally and return the CVO to Hill.
5.2
Employer’s Rep.
5.1.15 Upon receipt, Hill Project Manager shall issue the approved CVO to the Contractor with copy to Hill Contracts Manager, Cost Consultant and Supervision Consultant.
Hill Project Manager
5.1.16 Hill Contracts Manager shall update the variations log (Form PRA-0002-PP-07-06-FM-LG) and variations summary. Summary of variations is to be provided to Hill Project Controls Manager for issue via Hill Project Manager to Employer in the Monthly Report.
Hill Contracts Manager, Hill Project Controls Manager, Hill Project Manager
CONTRACTORS' VARIATIONS PROCEDURE BY SWI
The process below is referred to as the Site Work Instruction (SWI) Method and is to be used for Site Works Instruction of items which are necessary to avoid abortive works. 5.2.1
The process is initiated by the Supervision Consultant who prepares the Site Works Instruction (SWI) using Form Ref. PRA-0002-PP-07-07-FM (or the Supervision Consultant’s form approved by the Employer / PMC) with attachments and forwards it to Hill Project Manager / Document Controller for further processing by Hill Contracts Manager and the Cost Consultant.
5.2.2
Upon receiving the copy of SWI, Hill Contracts Manager and Cost Consultant shall prepare initial estimate of cost and time (with assistance from Hill Project Controls Manager) and forward it together with the SWI to Hill Project Manager for review and signature. Hill Project Manager shall review and forward the SWI together with attached estimate to Employer for approval to proceed.
5.2.3
Upon satisfactory review, Employer’s Representative should sign for approval to carry out the works.
5.2.4
Following approval by the Employer, Hill Project Manager shall issue the approved SWI to Contractor with copy to Supervision Consultant, Cost Consultant and Hill Contracts Manager.
5.2.5
On receipt of the approved SWI, Contractor shall carry out the work tasks, prepare time and cost estimates and then forward it to the Supervision Consultant who shall then forward it to
Hill after satisf actory review . Hill Projec t Mana ger / Docu ment Contr oller shall distrib ute the Contr actor’ s time and
cost estimates to Hill Contracts Manager and the Cost Consultant.
Supervision Consultant
Hill Contracts Manager, Hill Project Controls Manager, Hill Project Manager, Cost Consultant
Employer’s Rep.
Hill Project Manager
Contractor, Supervision Consultant, Hill Project Manager / Document Controller
5.2.6
After satisfactory review by Hill Contracts Manager, Cost Consultant and Hill Project Controls Manager, Hill Project Manager shall forward the evaluation to the Employer’s Representative for review.
Hill Project Manager, Hill Contracts Mgr Hill PCM, Cost Consultant
5.2.7
Hill Contracts Manager shall convene a meeting with Contractor and Employer’s Representative, with participation of Hill Project Controls Manager, Cost Consultant and Supervision Consultant to finalize the CVO proposal.
Hill Contracts Mgr Hill PCM, Cost Consultant, Supervision Consultant, Employer’s Rep., Contractor
5.2.8
Following conclusion of the meeting and where there is a valid variation, Hill Contracts Manager shall draft a Construction Variation Order (using Form PRA-0002-PP-07-05-FM), sign it and obtain signature from Hill Project Manager, Supervision Consultant and Contractor via Hill Document Controller.
Hill Contracts Mgr Hill Project Manager, Supervision Consultant, Contractor
5.2.9
Hill Project Manager shall forward the signed draft Construction Variation Order to the Employer for approval.
Hill Project Manager
5.2.10 Employer’s Representative in coordination with Employer Senior Management should initiate and organize Employer internal process for approval signature.
Employer’s Rep., Employer SM
NOTE: Employer Internal decision to be within 14 days or actual contractual time restraints. 5.2.11 After obtaining decision signature, the Representative should return the CVO to Hill.
Employer’s
5.2.12 Hill Project Manager shall issue the approved CVO to the Contractor with copy to Hill Contracts Manager, Cost Consultant and Supervision Consultant. 5.2.13 Employer’s Representative should arrange for filing of the memo. 5.2.14 Hill Contracts Manager shall update the variations log (Form PRA-0002-PP-07-06-FM-LG) and variations summary. Summary of variations is to be provided to Hill Project Controls Manager for issue via Hill Project Manager to Employer in the Monthly Report.
5.3
CONTRACTORS' REQUEST FOR VARIATION PROCEDURE
When FIDIC rules applies, Contractor's Variations request arises if an instruction from the Supervision Consultant Engineer constitutes a Variation as per Clause 3.3 of the Conditions of Contract for Construction, FIDIC 1999.
Employer’s Rep.
Hill Project Manager
Employer’s Rep.
Hill Contracts Mgr Hill Project Controls Manager, Hill Project Manager
All Variations must be approved by the Employer, prior to commencement of Work. Unless otherwise agreed with the Employer,
for all Variations please refer to Clause 13 of the Conditions of Contract for Construction, FIDIC 1999. The variation process may be initiated by the following unless the instruction or request is to expedite the works: a. Project Manager's Instruction (PMI) (Form PRA-0002-PP-0917- FM) issued to the Supervision Consultant Engineer which may have additional time and cost implications to the Contractor. b. Request for Variation Order issued from the Contractor. 5.3.1
The variation process is initiated, by Contractor submitting a Contractor’s Request for Variation Order (CRVO) (Form PRA0002-PP-07-10-FM) to Hill (PMC) with copy to the Supervision Consultant for the reasons stated above in items a or b.
5.3.2
On receipt, the Supervision Consultant shall review and assess the request and forward it to Hill. Upon review, Hill Project Manager / Document Controller shall forward the CRVO to Hill Contracts Manager and the Cost Consultant for review.
5.3.3
Hill Contracts Manager shall convene a meeting with Employer's Representatives with participation of Hill Project Manager, Hill Design Manager / Construction Manager, Hill Project Controls Manager, Cost Consultant and Design Consultant (where applicable) to discuss VO proposal.
5.3.4
Hill Contracts Manager with assistance from Cost Consultant, Hill Project Controls Manager and Hill Design Manager / Construction Manager shall review, assess request and if acceptable completes CRVO Form (Ref. PRA-0002-PP-0710- FM) along with PMC Request for Variation Order (PMRVO) form (Ref. PRA-0002-PP-07-08-FM). The CRVO and PMRVO shall be forwarded to the Employer for approval through Hill Project Manager / Document Controller. If rejected, Hill Contracts Manager shall return the CVRO Form to Contractor through Hill Document Controller and Supervision Consultant.
5.3.5
Employer’s Representative should review the CRVO including PMRVO and indicate approval in principle by letter (or an agreed means) and return to Hill. If rejected, the CVRO is to be returned to Hill for further forwarding to Contractor as in Item 5.3.4 above.
5.3.6
Following approval of the PMRVO by the Employer and receipt from Hill Project Manager, Hill Contracts Manager shall complete a Construction Variation Proposal Request
(CVP R) Form (Ref. PRA0002PP0704FM) and forwar d it to Hill Projec t Mana ger who shall then revie w and issue it to Contr actor with reque st for time and cost propo sal with copy to the Super vision Cons ultant and Desig n Cons ultant via Hill Docu ment Contr oller.
Contractor
Supervision Consultant, Hill Project Manager / Document Controller
Hill Contracts Manager, Hill PM, Hill Design Mgr, Construction Mgr, Project Cont. Mgr, Design Consultant, Employer
Hill Contracts Mgr Cost Consultant, Hill Project Controls Manager, Hill Design Mgr / Construction Mgr, Hill Project Manager
Employer’s Rep., Hill Project Manager
Hill Contracts Manager, Hill Project Manager / Hill Document Controller
Contractor
Hill Contracts Manager, Hill PCM, Hill Design Mgr /
5.3.7
On receiving the CVPR, Contractor shall prepare time and cost evaluation with completed CVPR form (Ref. PRA-0002PP-07- 04-FM) and forward it to Hill via the Supervision Consultant Engineer.
5.3.8
Hill Contracts Manager with assistance from the Cost Consultant, Hill Project Controls Manager and Hill Design Manager / Construction Manager shall review the completed CVPR with documentation and forward via Hill Project Manager to Employer for review.
5.3.9
Hill Contracts Manager shall convene a meeting with Contractor and Employer’s Representative, with participation of Hill Project Manager, Hill Project Controls Manager, Hill Design Manager / Construction Manager, Supervision Consultant and Design Consultant to finalize the CVO proposal.
5.3.10 Following conclusion of the meeting, Hill Contracts Manager shall draft Construction Variation Order (using Form PRA0002-PP-07-05-FM), sign it and obtain signature from Hill Project Manager, Cost Consultant and Contractor via Document Controller. 5.3.11 Hill Project Manager shall forward the signed draft Construction Variation Order to Employer’s Representative for approval. 5.3.12 Employer’s Representative, in coordination with Employer Senior Management should initiate and organize Employer internal process for approval signature.
Construction Mgr. Hill Project Manager Hill Contracts Manager, Hill PM, Hill PCM, Hill Design Mgr., Supervision Consultant, Design Consultant, Employer’s Rep. Hill Contracts Manager, Hill Project Manager, Cost Consultant, Contractor
Hill Project Manager
Employer’s Rep., Employer SM
Employer PD, Hill Project Manager
NOTE: Employer’s Internal decision to be within contractual time restraints. 5.3.13 After obtaining decision signature, the Employer’s Representative should return the CVO to Hill, and Hill Project Manager shall issue the CVO to the Contractor with copy to Hill Contracts Manager, Cost Consultant, Supervision Consultant and Design Consultant (where required).
Employer
5.3.14 Employer's Representative should arrange for Employer Project Controls Manager to file memo upon receipt. 5.3.15 Hill Contracts Manager shall update the variations log and variations summary (Form PRA-0002-PP-07-06-FM-LG). Summary of variations is to be provided to Hill Project Controls Manager for issue via Hill Project Manager to Employer in the Monthly Report.
Hill Contracts Manager, Hill Project Controls Manager, Hill Project Manager
6. REFERENCES 1) KCT-IMS-CM-3707 Rev.0 , Project Claims, Variations and Disputed Items 2) Hill Intl PRA-00002-PP-17-PRM-02, Claims, Change & Extension of Time Procedure
7. ATTACHMENTS 7.1
Employer Driven Variations to Contractors Process Map
Variations by SWI Process Map Variation by Contractor Request Process Map Variation Proposal Form Variation Order Form Variation Order Log Site Work Instruction (SWI) Form PMC Request for Variation Order (PMRVO) Form Contractor's Request for Variation Order (CRVO) Form Project Manager’s Instruction (PMI) Form
7.1 Employer Driven Variations to Contractors Process Map EMPLOYER DRIVEN VARIATIONS PROCEDURE (during Construction)
NOTE: This is a generic procedure and is to be adapted to comply with the project specific requirements CC CONS ENG CONT Input / Output CONSULTANT
X X
X
Attend meeting
Issue Optional
RFQ Method To be used for variations initiated by the Employer which are a change of scope to the contractor
S
I
1. Employer's Representative issues Letter of Instruction to Hill regarding additional Scope of Works.
P
2. Hill Project Director forwards copy of Letter to Hill Contracts Manager, Design Manager and Project
C
Controls Manager. Hill PD arranges meeting for
Design Consultant
I
Cost Consultant
Decide
Contracts Manager
D
Review/Assist
Design Manager + team/ Construction Manager
Receive Original/ Copy
A
Project Controls Manager
O/ C
S Start
Perform
Project Director / Document Controller
R/
P
Senior Management (SM) Employer
KEY
Contractor
Insert Client Logo Here
Supervision Consultant Engineer
EMPLOYER
Letter of Instructio
C
C
C
X
X
X
P
A
P
attendance by relevant parties to discuss Construction Variation. 3. Hill convenes a meeting with Employer's Representative to discuss
X
X
Construction Variation Proposal. R
4. Hill Contracts Manager in liaison with the Cost Consultant, Employer Cost
Proposed RFQ + attachments (rough estimates)
Representative and Hill Design Manager / Construction Manager, prepares proposed Scope of Works (RFQ where applicable) and rough
Reject
I
estimate (by CC) based on BOQ rates, and forwards to Employer's Representative
Reject
via Hill Project Director.
D
5. Employer's Representative approves in principle by letter and returns to Hill. If rejected, returned to Hill and Cost Consultant for revision.
I
A
6. Hill Project Director instructs and issues to the Design Consultant the
A
necessary documentation to enable preparation of technical documents. C
C Technical Document s
7. Design Consultant prepares technical documents and submits toHill.
8. Hill Contracts Manager, Design Manager / C
Construction Manager, & Project Controls Manager
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P
R
Construction Variation Proposal Request
review technical documents from Design Consultant. Hill Contracts Manager completes a I
Construction Variation Proposal Request (Form CCC-NNN-PP-07-04-FM) and forwards to Hill
C
Project Director for issue to Contractor with request for time and cost proposal.
P
Copy is also forwarded by Hill to the Supervision Consultant. C
C
9. Contractor prepares time & cost evaluation with completed CVPR form
Construction Variation Proposal Request
(Ref. CCC-NNN-PP-07-04-FM) and forwards to Hill with copy to the Supervision Consultant. Hill Project Director forwards to relevant
R
R
X
X
R
P
R
P
parties. 10. Hill, Cost Consultant and Employer analyse the proposal and meet with the Contractor if necessary to reconcile any differences and negotiate an agreed adjustment. 11. Hill Contracts Manager draft Construction Variation Order (CVO) (Form CCC-NNN-PP-07-05-FM), signs & obtain signature from Cost Cons.,
X
X
X Draft CVO
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Hill Project Director and Contractor via Document Controller. Hill Contracts Manager logs the CVO on CVO Log form (Ref.CCC-NNN-PP-07-06-LG).
P
12. Hill Project Director forwards draft Construction Variation Order to the Employer for approval after satisfactory review.
P
13. Employer's internal process for signature D NOTE: Employer's Internal decision to be within 14 days
X
P
14. After signature, the Employer's Representative distributes internally
P
Memo
and returns the CVO to Hill. 15. Hill Project Director issues approved CVO to the Contractor with copy
I
to Hill Contracts Manager, Cost Consultant and Supervision Consultant.
P
16. Hill Contracts Manager updates the variations log (Form CCC-NNN-PP-07-06-LG) and variations summary. Summary to be issued to Employer in the Monthly Report.
Approved CVO
C
C
C
C
O
P
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Document No: CCC-NNN-PP-07-01-PM Rev.1 Revision Date: 12-Oct-2009
Project Director / Document
7.2 Variations by SWI Process Map
X X
X
D
Decide
A
I
Attend meeting
Issue Optional
SWI Method To be used for Site Works Instruction for items which are
CONT
Input / Output
Contractor
Cost Consultant
R/ Review/Assist
ENG
Supervision Consultant Engineer
Receive Original/ Copy
Start
CC
Project Controls Manager
O/ C
S
Perform
Hill (PMC)
Contracts Manager
P
Employer's Representative
KEY
Senior Management Employer
EMPLOYER
Insert Client Logo Here
Controller
This is a generic procedure and is to be adapted to comply with the project specific requirements CONTRACTORS' VARIATIONS PROCEDURE NOTE: by SITE WORKS INSTRUCTION (SWI)
S
necessary to avoid abortive works. 1.
Initiated by The Supervision Consultant Engineer who prepares
P
O
the documents and forwards to Hill Project Director / Document Controller for further processing by Hill Contracts Manager & Cost Consultant. 2.
Hill Contracts Manager & Cost Consultant prepares initial estimate P
of cost and time (with assistance from Hill Project Controls Manager) and forwards together with Site Works Instruction (SWI) using Form
A
P
SWI
R
Ref. CCC-NNN-PP-07-07-FM to Hill Project Director for review and signature. Hill Project Director forwards SWI together with estimate attachments to Employer for approval to proceed. 3.
Employer signs for approval to carry out the works.
4.
Following approval, Hill Project Director issues approved SWI
Rejected, SWI Aborted
D I
to Contractor with copy to Supervision Consultant, Cost Consultant and Hill Contracts Manager. 5.
C
C
C
O
Contractor carries out the work and prepares time & cost P
estimates and forwards to Supervision Consultant who then C
reviews and forwards to Hill. 6.
R
Hill in coordination with Cost Consultant reviews & forwards to Employer for review.
7.
8.
Hill meets with Contractor, Cost Consultant, Supervision Consultant & Employer Representative to finalize documents.
R
P
R
P
X
X
X
X
P
A
P
Where there is valid variation, Hill Contracts Manager in coordination with Cost Consultant drafts Construction Variation Order (Form CCC-NNN-PP-07-05-FM), signs & obtain signature from Hill Project Director, Supervision Consultant and Contractor via Hill Document Controller.
9.
C
X
Draft CVO
P
Hill Project Director forwards draft Construction Variation Order to the Employer for approval.
X
P
P C
C
10. Employer's internal process for signature NOTE: Employer's Internal decision to be within 14 days 11. After signature, the Employer Representative returns the CVO to Hill.
D
Memo
P
12. Hill Project Director issues approved CVO to the Contractor Consultant. 13. Employer Representative arranges for filing of memo.
C
C
C
O
P
14. Hill Contracts Manager updates the variations log
P
(Form CCC-NNN-PP-07-06-LG) and variations summary. Summary to be issued to Employer in the Monthly Report. See related process map CCC-NNN-PP-07-02-PM for Employer Driven Variations to Contractors
Approved CVO
I
with copy to Hill Contracts Manager, Cost Consultant and Supervision
P
P
I C Document No: CCC-NNN-PP-07-03-PM Rev.1 Revision Date: 12-Oct-2009
7.3 Variation by Contractor Request Process Map
NOTE: This is a generic procedure and is to be adapted to comply with the project specific requirements CC SC CONS CONT Output
X
I
Attend meeting
Issue Optional
When FIDIC rules applies, Contractor's Variations request arises if an Instruction from the Supervision Consultant Engineer constitutes a Variation as per Clause 3.3 of the Conditions of Contract for Construction, FIDIC 1999 All Variations must be approved by The Employer prior to commencement of Work For all Variations please refer to Clause 13 of the Conditions of Contract for Construction, FIDIC 1999 The Variation process may be initiated by the following unless the instruction or
Design Consultant
Decide
Cost Consultant
D
Contractor
X X
Copy
Review/Assist
Supervision Consultant Engineer
Receive Original/
A
Design Manager
O/ C
R/
Contracts Manager
Perform
Senior Management Employer's
S Start P
Employer's Representative
KEY
PMC (Hill)
Project Director / Project Manager Document Controller
EMPLOYER
Insert Client Logo Here
Project Controls Manager / Planning & Scheduling Engineer
CONTRACTORS' REQUEST FOR VARIATION PROCEDURE
S
request is to expedite the works: a. Project Manager's Instruction (PMI) issued to the Contractor which may have additional time & cost implications to the Contractor. (Form CCC-NNN-PP-09-17-FM) b. Issue from the Contractor of a request for a Variation Order. 1. Process initiated by Contractor requesting Variation Order (Form CCC-NNN-PP-07-10FM) for the reasons stated above in items a or b, to Supervision Consultant Eng'r and
2. On receipt, Supervision Consultant reviews and assesses request and forwards
P
C
to Hill Contracts Manager and Cost Consultant via Hill Document Controller.
C 3. Hill convenes a meeting with The Employer's Representative, Design Consultant
Contractor Variation Request
P
PMC (Hill)
and the X
Reject
A
X
X
X
X
P
A
A
A
X
X
Cost Consultant to discuss VO proposal. 4. Hill reviews, assesses request and if accepted completes Form
C
CRVO & PMRVO
CCC-NNN-PP-07-10-FM along with completed form CCC-NNNPP-07-08-FM (PMC Request for Variation Order) and issues it to Employer for approval.
Reject
R
If rejected, Hill returns Form CCC-NNN-PP-07-10-FM to Contractor. Reject
5. Employer approves in principle by letter and returns to Hill. If rejected, D
returned to Hill to be further forwarded to Contractor as in Item 4 above.
6. Following approval of the PMRVO by the Employer, Hill Contracts Manager completes aI
P
Construction Variation Proposal Request (CVPR)
Construction Variation Proposal Request (Form CCC-NNN-PP-07-04-FM) and forwards to Hill Project Director who issues to Contractor with request for time and cost proposal with copy to Supervision Consultant and Design Consultant.
C C
7. Contractor prepares time & cost evaluation with completed form CCC-NNN-PP-07-04-
C
C
O P
Completed CVPR + documents
FM and forwards to Hill via Supervision Consultant. 8. Hill and Cost Consultant reviews & forwards to Employer for review.
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P
X C
X P
R
R
R
X
X A
R 9. Hill meets with Contractor, Supervision Consultant, Cost Consultant, Design Consultant and Employer to finalise.
X
X
X
X
10. Hill Contracts Manager draft Construction Variation Order (Form CCC-NNN-PP-07-05FM), signs & obtains signature from Hill Project Director and Contractor via Document Controller.
Draft CVO
11. Hill Project Director forwards signed draft Construction Variation Order to Employer.
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12. Employer internal process for signature NOTE: Employer Internal decision to be within contractual time restraints
13. After signature, the Employer's Representative returns the CVO to Hill, and Hill Project Director issues to the Contractor with copy to Hill Contracts Manager, Cost Consultant, Supervision Consultant and Design Consultant.
D
14. Employer's Representative arranges for Employer Project Controls Manager to file memo. P
C
C
P
C
C
O
P I
R
C
C
Memo Approved CVO
P 15. Hill Contracts Manager updates the variations log and variations summary (Form CCC-NNN-PP-07-06-FM-LG). Summary to be issued to Employer in the Monthly Report.
P
I C
See related process map CCC-NNN-PP-07-01-PM for Variations to Designers See related process map CCC-NNN-PP-07-02-PM for Employer Driven Variations See related process map CCC-NNN-PP-07-03-PM for Variations by SWI
Document number: CCC-NNN-PP-07-09-PM Rev.1 Revision Date: 12-Oct-2009
7.4 Variation Proposal Form
7.5 Variation Order Form
7.6 Variation Order Log
7.7 Site Work Instruction (SWI) Form
7.8 PMC Request for Variation Order (PMRVO) Form
7.9 Contractor's Request for Variation Order (CRVO) Form
7.10
Project Manager’s Instruction (PMI) Form
Project Procedures
Construction Variation Order Procedure Page 20 of 20
PRA-00002-PP-07-PRM-02 Rev.A
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