Variations, Value Engineering Proposals & Requests for Proposals

The purpose of this article is to explore the Variations register and will explain how to create a Value Engineering Proposal (VEP), a Request for Proposal (RFP) and Variation (VAR). 

Video content is available below.

Variations Register

This register is the area within a FIDIC contract where all Variations are held. This includes Value Engineering Proposals and Request for Proposals. 

The status of each event is located on the right side of the register. This will outline whether the event is  in one of the following states;

  • Draft - Event is yet to be communicated
  • AWAITING PROP - Variation is awaiting a Contractor's Proposal
  • PROP SUBMITTED - Contractor's Proposal submitted, awaiting reply from Employer
  • CLOSED - Implemented
  • NOT ADOPTED - Variation has been rejected and closed by the Employer
  • CANCELLED - RFP has been cancelled by the Employer

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- The first reference column displayed is the unique reference number given to the Variation, the second reference column (CC Ref) is a unique Change Control reference.

- If the TBD (To Be Determined) box is selected within the register, this indicates the Employer has made their intent to assess the Variation and once communicated, implements the event with their chosen price and day impacts to the contract.

- The printer symbol located at the top of the register allows the register to be printed and exported in summary and detailed versions.

Presented at the bottom of the register are the total values (price/days) that the contract may be/have been impacted by. These are colour coded to reflect different states:

  • Orange values = Estimated
  • Black values = Current CP/DC value
  • Blue values = Implemented
Creating a Value Engineering Proposal (VEP) - Contractor

Please note this communication type is exclusive to the Contractor's party.

To create a new VEP, navigate to the left-hand expandable menu and select Create New, followed by Value Engineering Proposal. This will create a draft VEP which will appear in the Variations register and the Change Control register.

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This will open up a new event form ready to edit, where the title and details can be entered. Depending on the contract setup in the admin panel, you may be required to enter an estimation for the impact to the Contract Completion Date and Contract Price.

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Once a VEP has been communicated it will alert the Employer's Party and generate a reminder within their reminders page to communicate their decision.

At this stage, it is also possible for the Contractor to start preparing a Contractor's Proposal on the VEP, however it will not be possible to communicate it until the Employer has responded to the VEP and communicated their request for proposal. For more information on this workflow, please see our Contractor's Proposals help article.

 

Replying to a VEP - Employer

Once a VEP has been communicated it will alert the Employer's Party and generate a reminder within their reminders page to make a decision.

The Employer will then be able to respond to the VEP. This response can be one of the following;

  • This Value Engineering Proposal (VEP) will not be adopted
  • Request for Proposal (RFP) for this Value Engineering Proposal (VEP)

If the Employer decides that the VEP will not be adopted, the status will change to NOT ADOPTED in the registers and no further action on the event will be possible by either Party:

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If the Employer chooses to communicate a request for Proposal, a date picker will appear for the Employer to choose to which date the Contractor's Proposal will be valid until:

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A reminder will then be generated for the Contractor's Party to submit a Proposal for this event which will count down to the date selected within the VEP reply.

 

Creating a Request for Proposal - Employer

It is also possible for the Employer to communicate an RFP without a VEP being required from the Contractor. 

To do this, select Create New within the left-hand expandable menu, followed by RFP/ERI (VAR):

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This will open a draft event where the title and details can be entered. Depending on the contract setup in the admin panel, you may be required to enter an estimation for the impact to the Completion Date and Contract Price:

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Once communicated, the Contractor's Party will be alerted and will have a reminder to submit their Proposal for the Variation. 

At this stage, the option to notify and communicate an Employer's Representative's Determination also becomes available in the Contractor Proposals / ERD tab. For more information on this workflow, please see our help article.

Giving a Variation Instruction

Once the Employer has communicated an RFP to the Contractor, or has communicated a response to a VEP requesting an RFP, two buttons will appear at the bottom-right of the event:

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If the Employer chooses to give the Variation instruction, a window will appear to enter the details of the instruction and this generates an Employer's Representative's Instruction, which can be found in the ERI register or the documents log. 

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Once this variation instruction is communicated, any subsequent Proposals submitted by the Contractor for this Variation will include the details of the instruction that the Employer user entered. This will appear in the Description of proposed design and/or work section and it will not be editable:

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If the Employer chose to Cancel Request, a window will appear for the Employer to enter the details and once communicated the status of the event would change to CANCELLED:

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For further guidance explaining how to implement a Variation, please see our Contractor Proposals and Employer's Representative's Determination help article.

 

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