Module 6: Preventing corruption in project construction

Controls: contract variations

Implement effective controls over changes to the parties’ obligations under the contract (often called “variations”).
Ensure that the contract with the winning contractor states:
- the parties’ obligations (e.g. in relation to scope of work, quality, quantity, price, payment and liability)
- the procedure allowing any variation to these obligations
- the consequences of any such variation to price and programme.
Appoint a suitable manager who is responsible for approving any contract variation, and who:
- verifies that there is a legitimate technical or commercial reason for the variation
- verifies that the variation and its consequences are in accordance with the contract
- is alert for any suspicious indicators in relation to the variation.
Require the approval of two managers where a variation has a high cost or risk impact.

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