NPM No. 019-2015
Requesting Entity: Department of Agriculture (DA)
Issues Concern: Variation Order
Request for the immediate release of the Guidelines on Variation Orders exceeding 10% of the original contract price
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. However, 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%).
[T]he GPPB has not issued the Guidelines on Variation Order beyond ten percent (10%). xxx [I]n the event the Guidelines for Variation Orders is issued, the same shall have a prospective application and shall not apply to those projects that were undertaken prior to its effectivity. Accordingly, the rules on Variation Order should be applied as it is currently crafted and formulated.