ABSTRACT
Words such as Change and Variation are basically the same. To avoid confusion, the word ‘Variation’ can be avoided. However, in the FIDIC form of Contract, the word Variation is used. A Change is one to which both Owner and Contractor agree in principle, while a Claim is one to which both disagree. It is advisable that Contractor does not commence any work on which he placed a Change request unless the Owner agrees in writing. In a Change approved by the Owner, cost approval takes a longer time, and hence work involved there cannot be put on hold until the cost has been fully approved. If a Change involves both cost and time impacts, it is advisable to delink the time impact from the Change under the condition that the time impact will be addressed in the future in a separate Change; otherwise, it lands both Parties into conflict/dispute. Trend Notices can give a full picture of what both Parties intend to raise Change notices on various items bearing cost and time impacts. Factors that impact the EPC lump sum price and give rise to Change are enumerated.
