Variation Order (Change Order)

Definition

A formal instruction from the employer (or Engineer under FIDIC) directing the contractor to alter the scope, quality, quantity, sequence, or timing of the works. Variations are one of the most common sources of construction disputes in the GCC, particularly on megaprojects where design evolution during construction is frequent. Under FIDIC 2017, the Engineer may instruct a variation under Clause 13.1 (Variation by Instruction) or the contractor may propose one under Clause 13.2 (Value Engineering). The contractor is entitled to additional payment and/or time if the variation impacts the contract price or programme.