Variation Order or Negotiated Procurement

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Variation Order or Negotiated Procurement

Post by dagmars on Thu Sep 20, 2012 5:56 am

The original project was awarded thru a competitive public bidding (lowest responsive bid). The project title was " Construction of Covered Walk " with the following scope of works : 1. Concrete Works 2. Steel Works 3. Roofing Works. To complete the project and make it beautiful and look good additional fund was released for " Painting Works " costing 5% of the original contract. What appropriate procurement method to be adopted without violating any provision of RA 9184 ? Many thanks.
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Re: Variation Order or Negotiated Procurement

Post by regina avelino on Thu Sep 20, 2012 10:15 am

public bidding. in the first place, the painting works should have been included in the original projects. it doesn't mean that even if the additional works is only 5% (which is within the limit of 10% cumulative positive variation order) that you can always do that. I think other will not agree with me and they would probably cite section 1.1 of annex e. on the other hand negotiated procurement is not applicable for this as there are other requirements that should be present before you can resort to negotiated procurement for the 5% painting works.

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Re: Variation Order or Negotiated Procurement

Post by riddler on Thu Sep 20, 2012 1:06 pm

dagmars wrote:The original project was awarded thru a competitive public bidding (lowest responsive bid). The project title was " Construction of Covered Walk " with the following scope of works : 1. Concrete Works 2. Steel Works 3. Roofing Works. To complete the project and make it beautiful and look good additional fund was released for " Painting Works " costing 5% of the original contract. What appropriate procurement method to be adopted without violating any provision of RA 9184 ? Many thanks.

The additional work falls under Annex "E", Variation Order of the IRR. You may use Extra Work Order for thAT particular case as long the additional item/s is contagious to the contract. Very Happy
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Re: Variation Order or Negotiated Procurement

Post by dagmars on Thu Sep 20, 2012 6:45 pm

Originally, painting (finishing) of steel members was not included because of financial constraint. In order for the project to be functional and can be used immediately major parts of the structure ( concrete, steel and roofing) was programmed for bidding. Fortunately, before the contract expires thru the initiatives of our HOPE additional fund was made available to complete the project ...
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Re: Variation Order or Negotiated Procurement

Post by riddler on Fri Sep 21, 2012 8:01 am

Originally, painting (finishing) of steel members was not included because of financial constraint. In order for the project to be functional and can be used immediately major parts of the structure ( concrete, steel and roofing) was programmed for bidding. Fortunately, before the contract expires thru the initiatives of our HOPE additional fund was made available to complete the project ..


Very Happy You may use your abovementioned post as justification in preparing your Variation Order due to Extra Work. Be reminded that there are periods as to when and what limits you use the Order pursuant to the Annex "E" of the IRR. Very Happy
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Re: Variation Order or Negotiated Procurement

Post by dagmars on Sat Sep 22, 2012 7:47 am

That's our understanding about Annex "E" of the IRR. But the views and interpretation of our new Resident Auditor is different and we are facing this problem now on how to convince our auditor the process we follows is right and was based on RA 9184 Annex "E"... Maraming Salamat pong muli sa inyong lahat ...
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Re: Variation Order or Negotiated Procurement

Post by tonygreg613 on Sat Sep 22, 2012 5:59 pm

[u]Variation Order-Change Order/Extra Work order:
Variation Order m[i]y be issued by the procuring entity to cover any increase/decrease in quantities, including the introduction of new work items that are not included in the original contract or reclassification of work items that are either due to change of plans design or alignment to suit actual field conditions resulting in disparity between the pre construction plans used for purposes of bidding and the "as staked plans" or construction drawings prepared after a joint survey by the contractor and the Government after award of the contract........... Annex "E" -Contract Implementation Guidelines for the Procurement of Infrastructure Projects, RA 9184
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Re: Variation Order or Negotiated Procurement

Post by regina avelino on Mon Sep 24, 2012 9:32 am

hi sir dagmars, what does your resident auditor recommended you to implement the paint works and what was their reasons? God bless.

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Re: Variation Order or Negotiated Procurement

Post by isabelo c. rodriguez on Mon Sep 24, 2012 7:11 pm

good day to all!
1. in a variation order, can HOPE request BAC to reconvene to review the request of the contractor and the recommendation of TWG/Project Engineer?
2. what if a variation order came from PE itself and not from the contractor?
the original scopes of work subject to this VO were deleted due to fund limitation. after public bidding, savings were realized and now PE is requesting winning contractor to execute the deleted works thru nego procurement (Sec 53.4, adjacent or contiguos). tama po ba?
3. in relation to no. 2, what if VO exceeds 10% of contract price? will annex "E", 1.4, apply?
4. what "appropriate sanctions" are contemplated under Annex "E", 1.4? is there any gppb resolution so far regarding sanctions? i understand this particular section was put in place to discourage collusion.

maraming salamat po.



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