VARIATION ORDER

VARIATION ORDER
PRESENTATION OUTLINE
I. INTRODUCTION
A. DPWH BOC alignment of objectives
II. DEFINITION
III. FORMS OF VARIATION ORDER
A. Variation Order
B. Change Order
C. Extra Work Order
IV. PROCEDURES FOR EVALUATION
A. Request for Prior Clearance/Authority to Issue Variation Order
B. Variation Proper
V. REFERENCES
A. Revised IRR of R.A 9184
B. Department Order No. 28, Series of 2015
C. Department Order No. 95 , Series of 2013
D. Department Order No. 52 , Series of 2012
E. Department Order No. 47, Series of 2012
F. Department Order No. 04, Series of 2012
G. Department Order No. 54 , Series of 2011
VARIATION ORDER
G. Department Order No. 28, Series of 2015
H. Condition of Contract
I. Federation International Des Ingenieurs-Conseils (FIDIC)
J. Loan Agreement from the lending institution
K. Exchange Notes
V. REQUIREMENTS/CHECKLIST OF DOCUMENTS PER D.O. NO. 52 SERIES OF 2012
VI. STANDARD FORMS FOR VARIATION ORDER
VII. LEVELS OF AUTHORITY
VIII.PANEL DISCUSSION
INTRODUCTION
 ALIGNMENT TO DPWH OBJECTIVES
P DPWH OBJECTIVES I C N X BOC OBJECTIVES

A Increased mobility and total connectivity Cost effective, quality infrastructure

Impact
Social

projects
B Safe environment

C
Stakeholders
External

Transparent and accountable organization

D Ensure timely availability of

comprehensive and updated project
Engage the public and business partners in governance
information for management decision-
Process

making and stakeholders reference

Institutionalize improved processes Improve processes
Institutionalize uniform cost estimation and
Simplify and innovate processes
construction guidelines
E Nurture a corporate environment with a shared mission
People

F Uphold professionalism based on merit and Enhance technical competency and

performance professionalism of BOC personnel
G Ensure availability of necessary funds
Optimize available resources
Stewardship
Resource

Promote PPP investments

DEFINITION
Variation Order generally originates from the request of the
Contractor or as a request from the DPWH seeking a change to
the existing contract. It is a written agreement authorizing an
addition, deletion or revision in the work and/or time of completion
within the limits of the contract after it has been executed. It is a
specific type of contract modification that does not go
beyond the general scope of the existing contract.

Final Variation Order - A final quantification of work

accomplished conducted by a joint inspection between the
contractor and engineers from the implementing office. A final
variation order is issued if the project have been previously issued
with a change order/extract work order.
FORMS OF VARIATION ORDER
1. VARIATION ORDERS - CHANGE ORDER/EXTRA WORK
ORDER
1.1. Variation Orders may be issued by the procuring entity to
cover any of the following:
 increase/decrease in quantities, including the
introduction of new work items that are NOT
INCLUDED IN THE ORIGINAL CONTRACT or

 reclassification of work items that are either due to

change of plans, design or alignment to suit actual
field conditions resulting in disparity between the
preconstruction plans used for purposes of bidding and the
"AS STAKED PLANS" or construction drawings prepared
after a joint survey by the contractor and the Government
after award of the contract,
• provided that the cumulative amount of the positive or
additive Variation Order DOES NOT EXCEED TEN
PERCENT (10%) of the original contract price.

• The addition/deletion of works under Variation Orders should

be within the general scope of the project as bid and awarded.
THE SCOPE OF WORKS SHALL NOT BE REDUCED so as to
accommodate a positive Variation Order.
A Variation Order may either be in the form of
either a change order or extra work order.

1.2 A Change Order may be issued by the

implementing official to cover any
increase/decrease in quantities of
original work items in the contract.
1.3. An Extra Work Order may be issued by the implementing
official to cover the introduction of new work necessary for
the completion, improvement or protection of the project
which was not included as items of work in the original
contract, such as , where there are subsurface or latent
physical conditions at the site differing materially from those
indicated in the contract, or where there are duly unknown
physical conditions at the site of an unusual nature differing
materially from those ordinarily encountered and generally
recognized as inherent in the work or character provided for
in the contract.
1.4. Any cumulative positive Variation Order beyond ten percent (10%)
of the original contract price shall be subject of another contract to
be bid out if the works are separable from the original contract.
In exceptional cases where it is urgently necessary to complete the
original scope of work, the Head of the Procuring Entity may authorize
a positive variation order that will make the cumulative value of the
positive Variation Orders go beyond ten percent (10%) but not
more than twenty percent (20%) of the original contract price,
subject to the guidelines to be determined by the GPPB.
Provided, however, That appropriate sanctions shall be imposed on the
designer, consultant or official responsible for the original detailed
engineering design which failed to consider the Variation Order beyond
ten percent (10%).
1.5. In claiming for any Variation Order, the contractor
shall, within seven (7) calendar days after such work has
been commenced or after the circumstances leading to
such condition(s) leading to the extra cost, and within
twenty-eight (28) calendar days deliver a written
communication giving full and detailed particulars of any
extra cost in order that it may be investigated at that
time.

Failure to provide either of such notices in the time

stipulated shall constitute a waiver by the contractor for
any claim. The preparation and submission of Variation
Orders are as follows:
2. ADDITIONAL/EXTRA WORK COSTING

2.1. For Variation Orders, the contractor shall be paid for

additional work items whose unit prices shall be
derived based on the following:

a) For additional/extra works duly covered by Change

Orders involving work items which are exactly
the same or similar to those in the original
contract, the applicable unit prices of work
items original contract shall be used.
b) For additional/extra works duly covered by Extra Work Orders involving
new work items that are not in the original contract, the unit prices
of the new work items shall be based on the direct unit costs used in
the original contract (e.g. ,unit cost of cement, rebars, form lumber,
labor rate, equipment rental, etc.).

All new components of the new work item shall be fixed prices,
provided the same is acceptable to both the Government and the
contractor, and provided further that the direct unit costs of new
components shall be based on the contractor's estimate as validated
by the procuring entity concerned via documented canvass in
accordance with existing rules and regulations.

The direct cost of the new work item shall then be combined with the
mark-up factor (i.e., taxes and profit) used by the contractor in his
bid to determine the unit price of the new work item.
Procedures for Evaluation
The Two-Step Processing Procedure
The processing of variation orders consists of a two step
procedure wherein a request for prior clearance/authority to
issue Variation Order must first be submitted so that the
technical viability of the revisions can be studied including the
legal basis into which it is going to be anchored. If such clearance
is approved (D.O. 04, S. 2012), the Variation Order Proper may be
given its due course.
Request for Prior Clearance/Authority to
Issue Variation Order
The purpose of the request for prior clearance/authority to issue
Variation Order is to serve as an “annuncio” to the approving
official about the need for the additional works/variations. The
clearance should however not be taken as an outright approval
for the variation order. As this is considered to be a preliminary
stage of the procedure in the preparation of the variation order
proper, it consists of TENTATIVE INFORMATION AS TO COST and
contains the TECHNICAL JUSTIFICATION and LEGAL BASIS to
which reason, the variation order is being proposed.
Elements of Variation Order
A Variation Order should specify and include the following:

a) Identification of Variation Order

b) Description of Change – scope of change
c) Reasons for Change – justification
d) Change of contract price – cost/effect of variation order
e) Change of contract time – addition/deletion of contract
time
f) Approval of owner and conformity of the contractor
EVALATION PROCEDURES
EVALATION PROCEDURES
Brief Overview of the Evaluation Process:

1. Documents Examination- evaluation of documents should be in

accordance with the following:

a. Completeness of supporting documents as per Checklist provided in

D.O. 52, Series of 2012 and/or other necessary documents to serve as
proof in the requested suspension/extension of time.

b. The claim should be properly presented, justified and must comply to

applicable provisions of the contract, construction laws and rules and
relevant issuances of the department (R.A. 9184, FIDIC, D.O. 54, series
2012, D.O. 52, Series 2012, and D.O. 95 Series 2013)

c. Authenticity of all supporting documents

EVALATION PROCEDURES

2. Quantification- The quantification of the proposed

contract time extension if any is a combination of
mathematical and graphical analysis.

3. Review costing – Based on the existing condition of

contract , RA 9184 and FIDIC and applicable issuances.
REFERENCES FOR VARIATION ORDER
REFERENCES FOR VARIATION ORDER
Revised IRR of R.A 9184
Department Order No. 52, Series of 2012
Department Order No. 95, Series of 2013
Department Order No. 47, Series of 2012
Department Order No. 04, Series of 2012
Department Order No. 54, Series of 2011
Condition of Contract
Federation International Des Ingenieurs-Conseils (FIDIC)
Loan Agreement from the lending institution
Exchange Notes
REFERENCE FOR VARIATION ORDER
5. Republic Act (R.A.) No. 9184 and Its Implementing Rules and
Regulations Section 2, Annex E – Additional/Extra Work Costing
for Variation Orders:

The Contractor shall be paid for additional work items whose

unit prices shall be derived based on the following:

a. For work items which are exactly the same or similar to those
in the original contract, the applicable unit prices of work items
in the original contract shall be used.
REFERENCE FOR VARIATION ORDER
5. Republic Act (R.A.) No. 9184 and Its Implementing Rules and
Regulations Section 2, Annex E – Additional/Extra Work Costing
for Variation Orders:

b. For new work items that are not in the original contract, the
unit prices shall be based on the direct unit cost used in the
original contract (e.g. unit cost of cement, rebars, forms lumber,
labor rate, equipment rental, etc.).

All new components of the new work item shall be fixed prices,
provided the same is acceptable to both the Government and the
Contract, and provided further that the direct unit cost of new
components shall be based on the contractor’s estimate as
validated by the procuring entity concerned via documented
canvass in accordance with existing rules and regulations. The
direct cost of the new work item shall then be combined with
the mark-up factor used by the contractor in his bid to determine
the unit price of the new work item.
REFERENCES FOR VARIATION ORDER
D.O. No. 95, Series of 2013 – Reissuance of D.O. No. 9, Series of 2011
RE: Conduct of Pre-Procurement, Procurement, and Implementation
Activities for DPWH Foreign Assisted Civil Works Projects.

UPMO CENTRAL OFFICE

Prepare Variation Order (in accordance Review/Recommendation Approval of
with prescribed guidelines of the NEDA) Variation Order (Director, BOD/BOC)
Recommend Approval of Variation Order
not to exceed 10%of contract cost
(Undersecretary for Technical Services)
Approve Variation Order (Secretary)
REFERENCES FOR VARIATION ORDER
1. D.O. NO. 52, Series of 2012 – Implementation of the Document
Tracking System (DoTS) for Civil Works Projects
- Checklist –
a) Variation Order
b) Pre – Clearance
c) Prescribed Time for Prior Clearance
d) Prescribed Time for Change Order/ Extra Work Order
e) Prescribed Time for Final Variation Order
2. D.O. No. 47, Series of 2012 – Authority to Approved Variation Order
Covering Additional scope of Works Utilizing Savings for Locally –
Funded Projects.
3. D.O. No. 04, Series of 2012 – Delegating the Approval of Prior
Clearance from the Secretary to issue Variation Orders of Locally
– Funded Civil Works Projects
D.O. 47, S. 2012 SUBJECT: AUTHORITY TO APPROVE
VARIATION ORDER COVERING
ADDITIONAL SCOPE OF WORKS UTILIZING
SAVINGS FOR LOCALLY-FUNDED PROJECTS

In order to accelerate the implementation of DPWH locally-funded projects, the

approval of Variation Order (VO) covering additional scope of works utilizing
project savings is hereby delegated to the Regional Director for projects costing
above P 50 million but not more than P 150 million. For projects costing over P
150 million, the approval of said VO is delegated to the Undersecretary for
Technical Services.

Additional scope of works refers to works outside but contiguous to the original
project limits. The approval of VO covering addition/deletion of works within
the original project limits and the additional scope of works shall still be in
accordance with Department Order No. 54, series of 2011. The cumulative
amount of the positive or additive VO shall not exceed ten percent (10%) of the
original contract price pursuant to the Implementing Rules and Regulations of
R.A. No. 9184.

This Order amends pertinent provisions of Department Order No. 54, series of
2011 and shall take effect immediately.
DEPARTMENT ORDER 04,
Series of 2012
SUBJECT : DELEGATING THE APPROVAL OF
PRIOR CLEARANCE FROM THE
SECRETARY TO ISSUE VARIATION
ORDERS OF LOCALLY-FUNDED CIVIL
WORKS PROJECTS

In line with our continuing effort to simplify operating procedures and expedite
the implementation of projects, approval of requests for prior clearance from
the Secretary to issue Variation Orders on locally-funded Civil Works projects
undertaken by Regional and District Engineering Offices, is hereby delegated to
Regional Directors.

It is understood, however, that Variation Orders shall still be processed and

approved following existing procedures and prescribed levels of authorities.
Likewise, pursuant to the Implementing Rules and Regulations of R.A. No. 9184,
the cumulative amount of the positive or additive Variation Order shall not
exceed ten percent (10%) of the original contract price.

This Order amends pertinent provisions of D.O. No. 12, series of 2009, and
takeseffect immediately.
D.O. 28, Series of 2015 – SPECIFIC GUIDELINES TO
MANAGE AND CONTROL VARIATION ORDERS FOR
DPWH INFRASTRUCTURE CONTRACTS
To reduce the incidence and improve the management of Variation Orders
(VOs) for infrastructure contracts undertaken by the DPWH, all concerned are
hereby directed to observe the following guidelines in relation to the provisions
of Annex E (Contract Implementation Guidelines for the Procurement of
Infrastructure Projects) of the Implementing Rules and Regulations(IRR) of
Republic Act (RA) No. 9184:

a. Detailed Engineering must be adequately undertaken according

to established standards for surveys and designs with a degree of
accuracy that will permit estimates of quantities to be within plus
or minus five to ten percent (5-10%) of the final quantities.

b. Before procurement, the Implementing Office (IO) shall ensure that

the detailed engineering plans for the contract, especially if prepared
more than one year ago, are properly updated to reflect current
physical conditions.
D.O. 28, Series of 2015 – SPECIFIC GUIDELINES TO
MANAGE AND CONTROL VARIATION ORDERS FOR
DPWH INFRASTRUCTURE CONTRACTS
c. Upon the issuance by the DPWH of the Notice to Proceed (NTP) for a
contract, the Implementing Office shall provide the contractor an
electronic/soft copy of the approved plans for the project to
facilitate the preparation by the contractor of as-staked plans. Any
disparity between the as-staked plans and the approved plans
may serve as the basis for the initial VO.

d. Pursuant to the provisions of Section 1.1, Annex E of RA9184-IRR, a

deductive VO may be allowed only if it would not significantly
impair the functionality of the original design, i.e., it must not
reduce the size of the facility by more than ten percent (10%) of
the original scope (e.g. shortening of road length) or must not
make the facility unsafe (e.g., removal of guard rails) or
structurally unstable (e.g., removal of a column) or unusable
(e.g., removal of an abutment).
D.O. 28, Series of 2015 – SPECIFIC GUIDELINES TO
MANAGE AND CONTROL VARIATION ORDERS FOR
DPWH INFRASTRUCTURE CONTRACTS
e. Pursuant to the provisions of Section 1.5, Annex E of RA9184-IRR, the 10
shall see to it that, within seven (7) calendar days after emergency
work under a proposed VO has commenced, or within twenty
eight (28) calendar days after the circumstances for an extra cost
have occurred, the contractor must deliver a notice for the claim
of a VO so that the IO may investigate and process the VO if
justifiable. Failure by the contractor to deliver such notice on
time shall constitute a waiver by the contractor for any claim. The
IO shall not allow the contractor to "accumulate" claims for VOs
before submitting them to the IO for investigation and
processing.

f. The processing by the IO of VOs from its preparation to approval

shall not exceed thirty (30) calendar days.
D.O. 28, Series of 2015 – SPECIFIC GUIDELINES TO
MANAGE AND CONTROL VARIATION ORDERS FOR
DPWH INFRASTRUCTURE CONTRACTS

Failure of the concerned DPWH personnel to implement the

provisions of this Order shall, after due process, make them liable to
the penalties prescribed for violation of reasonable office rules and
regulations in Section 52, C(3) of Civil Service Resolution No. 991936
dated August 31, 1999, otherwise known as the Uniform Rules on
Administrative Cases in the Civil Service - i.e.: 1st offense -
Reprimand; 2nd offense - Suspension for 1-30 days; and 3rd
offense - Dismissal.
DPWH Standards Specifications 1988, Volume 1
– Prospective Bidders Responsibility
Item 10 – It shall be the sole responsibility of the prospective Bidder to
determine and to satisfy himself by such means as he considers
necessary or desirable as to all matters pertaining to the project,
including the location and the nature of work; climatic conditions;
geological conditions at the site; transportation and
communication facilities; the requirement and the availability of
materials, labor, water, electric power and roads; the location and
extent of aggregate sources; and other factors that may affect the
cost, duration and execution of work. The prospective Bidder by
the act of submitting his Bid acknowledges that he has inspected
the site and determined the general characteristics of the project
and the conditions stated above.

The Government shall not assume any responsibility regarding

erroneous interpretations or conclusions by the prospective Bidder
out of the data furnished by the Government.
CHECKLIST OF REQUIREMENTS AS PER D.O. NO.
52, SERIES OF 2012
DoTS SYSTEM PRESCRIBED TIME ANNEX “ E”

Change Order/Extra Work Order

Prescribed
Activity Office Time

Prepare, review and Construction Division 10

endorse
Prepare ALOBS CFMD 1
Review and Endorse Planning and Design 4
Division
Initial Assistant Regional 1
Director
Approve Regional Director 1
Total 17
CHECKLIST OF REQUIREMENTS AS PER D.O. NO.52, SERIES OF 2012
- the following are the checklist of requirements as per D.O. 52, S. 2012 in the processing of
request for prior clearance/authority to issue Variation Order for projects in the Central Office, for
PMO Foreign Assisted projects only per D.O. 95, S. 2013. The approval of Prior Clearance for
locally funded civil works had been delegated to the Regional Director per D.O. No. 4, S. 2012.

1. Executive Summary / This is where the Implementing Office explains the need
Memorandum request for the variation order which must be technically and
for clearance/authority legally justifiable. Likewise, the Implementing Office
must state in the Executive Summary/Memorandum
request for clearance/authority the approximate cost
and scope of work of the proposed variation order.

2. Duly signed/approved These Plans is being reviewed by BOD and approved by

plans for the proposed higher officials based on the limit of authority which
changes involves the variance of original plans used during the
time of bidding as compared to the As-Staked Plans or
other necessary plans due to change in Design,
Alignment based on actual condition of the project on
necessity of additional works on other necessary plans.
CHECKLIST OF REQUIREMENTS AS PER D.O. NO.52, SERIES OF 2012

3. Design analysis & This is where the Bureau of Design requirements in the
Computations for the processing of Variation Order.
proposed variation
4. Copy of Complete set of The copy of complete set of approved plans is being
the approved plans (As- required to check if the quantities of all the items of
staked, Original, Revised and As-Built) work involved is correctly reflected in the Itemized Cost
of Revision.
5. Copy of approved The approved request for clearance/authority to issue
clearance/authority to variation order is being required as this is the proof of
issue the proposed compliance to the two-step procedure and that the
variation order approval involving the proposed variation order has
already been accepted in principle by the Secretary.
CHECKLIST OF REQUIREMENTS AS PER D.O. NO.52, SERIES OF 2012

6. Detailed Technical The Itemized Justification contains the detailed

Justifications and legal explanation on why each of the items of work
basis for the proposed decreased or increased in quantity or why certain
changes (prepared by items of work is being deleted or introduced. This
consultant or is a back-up of the technical justification that was
implementing office given to check the logical changes in the contract
if both jives with each other .
7. Comments/ Should contain officials point of view and specific
recommendations of stand point about the changes to be made his
DPWH officials (Regional reasons, options and justifications,
Director, Project Director/Manager) recommendations.
8. Copy of approve contract These documents will serve as the bases or merit of the
including the GCC, COPA and request for Variation Order and can be used in the
SCC (for applicable clause/s) evaluation of the said Variation Order.
and previously approved
variation order/s
CHECKLIST OF REQUIREMENTS AS PER D.O. NO.52, SERIES OF 2012

9. Detailed Calculations It contains the computation of the quantity involve in

the Variation Order
10. Where substitution of original
specified materials involved,
the following requirements
shall be submitted:
a. Certification of the non-
availability of the specified
materials by 3 leading
Manufacturers or suppliers
b. Technical specifications of
the original and substitute
materials
c. Design computations for the
substitute materials
d. Cost Estimate
CHECKLIST OF REQUIREMENTS AS PER D.O. NO.52, SERIES OF 2012

11. Contractor’s Request a. The Contractor’s request is being required as this

shows the participatory role of the Contractor in
the proposed changes to the contract.
b. The request must bear the information of when
the need for the variation order was discovered
and the request of the Contractor an inspection
must be conveyed to confirm such need for
variation order.

12. Project Engineer’s Report/ The Project Engineer’s Report is being required in
Consultant Resident compliance with the provisions of the IRR-A of RA
Engineer’s Report 9184.
The Project Engineer’s Report therefore, must be
within the above mentioned guidelines which state
that if the Project Engineer finds the variation order
justifiable, he must prepare the proposed order and
submit same to the Director together with the
supporting documents.
 CHECKLIST OF REQUIREMENTS AS PER D.O. NO.52, SERIES OF 2012

13. Itemized Cost of Revision It contains the detailed cost computation of all the
changes in the amount of the contract including the
previous changes that were approved in Variation
Orders, if there is any.

Hence, it must include the Bill of Quantities of the

original contract, the previously approved variation
orders and the proposed work to be undertaken
which is being presented on an additive and
subtractive basis to easily distinguish how much work
is being deleted and how much is being introduced.

If the quantity involve was based from the plans

that has been previously reviewed by the Bureau of
Design, the Itemized Costs of Revision need not be
coursed thru the Bureau of Design in accordance with
D.O. NO. 62, series of 1998-Guidelines for the
Preparation, Processing and Approval of Variation
Order and As-stake Plans which states that:
CHECKLIST OF REQUIREMENTS AS PER D.O. NO.52, SERIES OF 2012

14. Straight-line Diagram The Straight Line Diagram should be in color code and reflect
showing the proposed the proposed works under the original/existing contract
works and the proposed works under the Variation Order with the
station limit.
15. Derivation of Time The derivation of proposed time extension, if there is any,
Extension for the for the should be based only on the items of work which is along the
proposed Variation Order critical path of the latest approved Construction Schedule (
PERT/CPM & BAR CHART).
(C.O./E.W.O.)
It is advised that to properly represent this requirement, the
contractor be made to submit a draft revision of the
PERT/CPM incorporating the necessary changes, so that the
effect in the contract with respect to the works, may be
appropriately derived based on reasoning.
16. Complete Contractual Data It contains all the necessary information including the
with Project Status Report contract cost, contract schedule, contract status, issues and
concerns and the corresponding actions being undertaken by
the Implementing Office.
CHECKLIST OF REQUIREMENTS AS PER D.O. NO.52, SERIES OF 2012
17. Detailed Unit Cost Analysis DUPA of original items of work and new items of work
for new items of work. in a variation order will be used in the verification is
such figures reflected in the DUPA are the same
figures used in the proposed new unit price in
accordance with the contract requirement.

a. Detailed Estimate of items

of work under the original
contract or previous
approved V.O.
b. Canvass Price and/or -which will be proof that the costs of materials used in
Derivation of Materials the derivation of the proposed new unit price is
Cost delivered at site. within the prevailing rates.
c. Construction -for uncommon items of work which, the construction
Methodology (for items of methodology will help the evaluator comprehend the
work which are highly actual things to be done in the performance of the
technical or unusual) item of works being evaluated.
CHECKLIST OF REQUIREMENTS AS PER D.O. NO.52, SERIES OF 2012

18. Approved Price Basis in adjusting the unit cost of items of work under
Adjustment/Escalation (if the original contract.
there’s any)
19. Obligation Request The Certificate of Availability of Funds is being required if
(ObR)/Certificate of Availability there is fund to finance the additional work. It must be issued
of Funds (CAF) by the Dept. of Budget Officer and must be to the least,
equal to the amount of the proposed variation order. There
are cases that the funds for the proposed variation order is
insufficient and only an additional certification is being
submitted issued by the Planning Service that the Funds to
complete the amount of the Variation Order is programmed
in the infrastructure budget of the Department.
20. Copy of previously approved Copy of previously approved Variation Order and Time Extension
Time Extension and Variation is being required to check the computation of the revised
Order (if there’s any) contract amount and time. Although these were already
required during the processing of request for Prior
Clearance/Authority to Issue Variation Order, it is likewise
required in the processing of the variation order proper as an
attachment to prove that it was made as basis in the review of
the figures previously mentioned.
 CHECKLIST OF REQUIREMENTS AS PER D.O. NO.52, SERIES OF 2012

21. If with additional cost, Additional Performance Bond is required per IRR-A of RA 9184
Performance Security which states that the contractor shall post an additional
(duly verified by SAC) performance security in accordance with the following schedule
to cover any cumulative increase of more than ten per cent over
the original value of the contract as a result of amendments due
to variation orders.

Cash Manager’s Check, cashier’s check, manager’s check,

bank draft or irrevocable letter of credit- 5%
Bank Guarantee-10%
Surety Bond-30%
Foreign government guarantee-100%

The Contractor shall cause the extension of the availability of the

Performance Security to cover proposed contract time extension
due to variation order for it shall be co-terminus with the final
completion of the contract
For Variation Orders Without Additional Cost and/or Time
Additional Performance Bond or the extension of the previous
Performance Bond is not required.
CHECKLIST OF REQUIREMENTS AS PER D.O. NO.52, SERIES OF 2012

22. Latest income tax and These documents are being required to determine if the
business tax returns duly contractor is religiously paying his obligations to BIR.
stamped and received by the
BIR and duly validated with
the tax payments made
thereon. Tax Clearance from
the BIR to prove full and
timely payments of taxes.
23. Certification under oath As additional support to Item 22
stating that the Contractor is
free and clean of all Tax
Liabilities to the Government
24. One set certified true copy of For file/Reference in the future
all the documents submitted
for accounting’s copy
STANDARD FORMS USED IN VARIATION ORDER
 VARIATION ORDER
Republic of the Philippines
Department of Public works and Highways
Implementing Office

PROPOSED VARIATION ORDER NO. ____

Project/Location :

To : Name of Contractor

You are hereby directed to make herein described changes from the plans and specifications of the following described work not included in the plans and specifications:

DESCRIPTION OF WORK TO BE DONE :

REASON FOR CHANGE : Please see attached Tabulation of Quantities

CHANGE REQUESTED BY :
(Work to be performed at agreed price.)

ITEMIZED QUANTITIES AND COST OF REVISION IS SHOWN ON THE ATTACHED BILL OF QUANTITIES AND COST ESTIMATE

We the undersigned Contractors have given careful consideration to the change proposed Difference in Cost due to this Change : PhP (+) or (-)
and hereby agree, if this proposal is approved that we will provide all equipment, furnish all Net Cost of Previous Change :
materials except as maybe otherwise be noted and perform all services necessary for work Total Cost of Change :
above specified and will accept as full payment thereto the prices shown on the second Original Contract Amount : PhP
page of the attached sheet. Estimated Revised Contract Amount : PhP
Percentage Change in Original Contract Value (+) or (-) :

DATE : SUBMITTED: CHECKED: RECOMMENDING APPROVAL:

CONTRACTOR :

Project Engineer Chief Construction Sect./ Asst. District Engineer/

DPWH Chief Construction Div./ Asst. Regional Director/
Project Manager/ Undersecretary
BY : Project Director/
Name of Contractor
APPROVAL:

District Engineer/
NOTE: This Variation Order is not effective until approved. Regional Director
Undersecretary
Secretary
 ITEMIZED COST OF REVISION
(Proposed Variation Order No. __)
Project : ______________________
Location : ______________________
Contractor : ______________________

PROPOSED V.O. # ___

REVISED QUANTITY
Original Contract
Unit Cost ADDITIVE DEDUCTIVE AND AMOUNT
Item No. Description Unit

Amount Amount Amount Amount

Quantity Quantity Quantity Quantity
(Php) (Php) (Php) (Php) (Php)

TOTAL AMOUNT

Submitted by: Verified as to Quantiites: Verified as to Unit Cost

Project Engineer Chief, Planning & Design Section/ Chief, Construction Section

DPWH Chief, Planning & Design Division/ Chief, Construction Division

Director, Bureau of Design Director, Bureau of Construction

Conforme:
Contractor
LEVELS OF AUTHORITY
 LEVELS OF AUTHORITY
D.O. No. 54, Series of 2011 – Revised Limits of Responsibilities and
Authorities of Concerned DPWH Offices and Official in the Conduct of Pre-
Procurement, Procurement, and Implementation Activities for DPWH
Locally – Funded Civil Works Projects.

District Office Regional Office Central Office

• Approval of Variation • Approval of Variation Order (VO) of Review/Recommendation for Approval
Order (VO) of projects projects costing greater than to (BOD/BOC)
costing up to P20M P20M to P50M (Regional Director)
(District Engineer) • Approval of Variation Order for projects
VARIATION ORDER

costing above P50M up to P150M

(Undersecretary for Technical Services)

• Approval of Variation Order for projects

costing above P150 (Secretary)
LEVELS OF AUTHORITY
D.O. No. 95, Series of 2013 – Reissuance of D.O. No. 9, Series of 2011
RE: Conduct of Pre-Procurement, Procurement, and Implementation
Activities for DPWH Foreign Assisted Civil Works Projects.

UPMO CENTRAL OFFICE

Prepare Variation Order (in accordance Review/Recommendation Approval of
with prescribed guidelines of the NEDA) Variation Order (Director, BOD/BOC)
Recommend Approval of Variation Order
not to exceed 10%of contract cost
(Undersecretary for Technical Services)
Approve Variation Order (Secretary)
PANEL DISCUSSION
(Observations Issues/Concerns)

1. The amount of request exceeds 10% Cannot be considered unless

of the original contract cost. provided in the conditions of
contract.
2. Items under the Lump Sum are not The Implementing Office is requested
specified. to provide the detailed breakdown for
the items of work involved.
3. Straight Line Diagram does not The Straight Line Diagram should
clearly identify the scope of works clearly identify the original scope of
under the Original contract and the works and the proposed variation
Proposed Variation Order. order.
PANEL DISCUSSION
(Observations Issues/Concerns)

4. Computation of additional contract The implementing is requested to

time not properly presented. present the computation in a BAR
Chart Form/CPM to consider the
approved construction schedule
5. Incomplete supporting documents To facilitate processing, the
and not properly presented and implementing office is requested to
justified. comply completely the required
documents and be presented properly.
Sometimes meeting had to be
undertaken to clarify matters and
expedite processing.
- END -