Common use of Payments for Variations Clause in Contracts

Payments for Variations. 38.1. There shall be an order in writing to execute the extra item of work from the Employer. Extra item can be additional, substituted or altered item depending on their relation to the original item. 38.2. Rates for the extra item shall be worked out as below: (i) In the case of extra items, if accepted rates for identical item are available in the contract the same shall be taken. (ii) In the case of extra items for which similar item exist in the contract, the rates shall be derived from the original item by appropriate adjustment of cost of affected components. (iii) In the case of extra items for which similar items do not exist in the contract and rate exist in the standard schedule of rates, the rates shall be arrived based on standard data rate prevalent at the time of ordering the extra item after applying the overall tender variation. However, no tender excess will be applied. (iv) In the case of extra items for which standard data is not available and that do not come in the category mentioned in (i), (ii) and (iii) above, the rates shall be worked by the Engineer based on prevailing market rates giving due consideration to the analysis of rates and data furnished by the contractor. 38.3. The Contractor shall not be entitled to additional payment for costs which could have been avoided by giving early warning.