Legal Analysis of Financial and Time Effects of Variations in Scope ‎of Works in Design and Built and EPC Turn-Key Contracts ‎(Comparative Study of Sample Contracts of Fidic, JCT, and Iran ‎Program and Budget Organization)‎

Document Type : Research Paper

Author

Faculty of Law and Social Sciences, The University of Tabriz, Tabriz, Iran

Abstract

Some projects are ultimately being built very differently from what the builders originally intended. Design that leads to variations in the quantities, capacities of the equipment used, changes in the priority of the works, changes in the way of access to the work front, etc., are some factors that lead to changes in the quantities and the quality of the project scope of works. The financial and time effects of these changes are in some cases significant, which causes serious controversies between the parties. It is necessary to manage these changes based on the contract documents and the preparation of the necessary documents by each party is of great importance, so that inaccuracy and non-observance of these items may lead to losses to one party of the contract. Prerequisites for publishing tender documents and determining the necessary criteria- whether they are prescriptive or performance-based - by the bidder and reviewing the relevant documents are among the issues that will have significant effects on change management. evaluating the financial and time effects of changes in the absence of a clear contractual mechanism is another problem that must be resolved in accordance with the usual procedures and rules and regulations governing the contract.

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References

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Comparative Law Review
Volume 14, Issue 1
Spring & Summer 2023
July 2023
Pages 1-27

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