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” or “change orders”).
The procurement controls (covered in Module 5 “Preventing Corruption in Project Procurement”) should ensure that each contract specifies:
- the parties’ obligations (e.g. in relation to scope of work, quality, quantity, programme, price, payment and liability)
- the procedures in relation to any variation to these obligations
- the consequences of any such variation (e.g. to price and programme).
Appoint a qualified and honest manager who is responsible for approving any contract variations and who:
- verifies that there is a legitimate reason for the variation
- verifies that the variation and its consequences are in accordance with the contract
- is alert for any suspicious indicators of corruption in relation to the variation.
Require the approval of at least two managers where a variation has a high cost or risk impact.

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