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Amendment Contract

7 replies [Last post]
Wed, 2010-09-01 02:21
tandyo winarno
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Groups: Petro-Chem / Oil & Gas
Dear All,

Would you please advise when the amendment contract shall be done after we have approved change order?

Do we have to make a amendment Contract for every single approved Change Order or we may waiting until certain number of approved Change Order?

Especially for Extention of Time (EOT).
If the answer, we don’t need to amend contract for every single change order what about change order that create EOT?
Can we treat same as other Change Order?(amendment will be done combine for several Change Orders)


Thanks
Tandyo
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Replies

Wed, 2010-10-13 02:10
#1
tandyo winarno
User offline. Last seen 13 years 37 weeks ago. Offline
Joined: 14 Jul 2009
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Groups: Petro-Chem / Oil & Gas

Thanks you all for your inputs.

Those will help me for executing the works

 

 

Regards,
Tandyo

 

 

 

 

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Sat, 2010-10-02 14:03
#2
JOHN SMITHS
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HI Tandyo,

 

This is strictly a company policy  framework ... every company has their own method of dealing with change orders.

There is generally a limit allowable in the system for the Project Manager to approve a change order either cumulative or single individual change.

If there is a basic principle change in the contract like a Project Completion date or some terms in the contract have to be changed which may or maynot impact the cost or schedule then it has to be done via a contract amendment.

 

I hope you got what i wish to convey

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Thu, 2010-09-16 09:00
#3
Daniel Limson
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Hi Tandyo,

I am sure there is a procedure for amendments to contract price based on approved change orders.

Programme wise, you need to incorporate these events into your programme if you have an approved EOT and you need to rebaseline base on the approved EOT. As I said before on another forum subject, not every change order or variation order has an impact on your programme and the only time you can rebaseline is when you have an approved EOT.

Best regards,

Daniel

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Fri, 2010-09-03 00:18
#4
Samer Zawaydeh
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Joined: 3 Aug 2008
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Groups: Civil Engineering, Regional Representatives
Dear tandyo,

I understand your question very well. You can collect several approved change orders and issue one Ammendement to the Contract. That is standard practice.

I would recommend to check on the upper level management meetings, maybe you have one every 3-4 months. Hence, you can try to make your updates periodically (say 3-4 months).

With kind regards,

Samer
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Thu, 2010-09-02 19:52
#5
tandyo winarno
User offline. Last seen 13 years 37 weeks ago. Offline
Joined: 14 Jul 2009
Posts: 25
Groups: Petro-Chem / Oil & Gas
Thanks Mike and Samer,

My project is EPC Lump Sum Contract with Government.
The way that we manage the Change is using the Change Order Format. On every change, Contractor propose the Change Order proposal through the that format, and then we review and approve or reject.

my question is do we need to make ammendment contract (Total EPC Lump Sum Contract) for every single approved change order format, or we may collect several approved change order format and then we make ammendment (consist of several change order)?

The problem is if we have to ammend the Contract for every single change order format, the approval shall be done by President Director (for Company and Contractor) and it take time, and it also will create many Ammendment Contract.

Sorry if my explanation is not clear.

Thanks
Tandyo
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Thu, 2010-09-02 10:29
#6
Samer Zawaydeh
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Dear tandyo,

What Mike said is correct. It depends on the Conditions of Contract that you have.

If you are using FIDIC, then the Contractor submits their claim for the change after 28 days from the completion of the event. The Engineer has 42 days to review and then the Contractor will confirm if they accept or not.

Usually it depends on the Client as well. If you are working for the government, then the Change Order means you have to pay certain taxes in certain countries, and that is income to the country. So the Engineer will make sure that they issue the Change Order periodically. On the other hand, if you are working for the private sector, it really depends on the Management system that they have in place.

With kind regards,

Samer
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Wed, 2010-09-01 02:39
#7
Mike Testro
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Hi Tandyo

As always it depends on what your contract says - particularly about notification of potential delays.

As a geberal rule every change order that affects the contract works should be placed on the programme and the effects reported.

Even if it is a loss of float the adjustment should be made.

Best regards

Mike Testro
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