Section 54: Variation Order

1) If a situation arises during the implementation of the contract that could not have been foreseen at the time of making the procurement agreement, the following authority may issue a variation order by adopting the prescribed procedure, stating the clear reasons for the same:

(a) Variation up to five percent by the Head of the concerned public body, Gazetted Second Class or its equivalent,

(b) Variation up to ten percent by the Head of the public body, Gazetted First Class or its equivalent,

(c) Variation up to fifteen percent by the Head of the department,

(d) Variation from fifteen percent to twenty-five percent by the Secretary of the ministry concerned or the Head of the concerned body,

(e) Variation above twenty-five percent by the Government of Nepal Council of Ministers in the case of a public body referred to in sub-clause (1) of clause (b) of section 2,

(f) Variation above fifteen percent by the Public Body referred to in sub-clause (2) of clause (b) of section 2 Variation by the highest executive body of that body.

2) While issuing a variation order pursuant to clause (e) of sub-section (1), in the case of a public body referred to in clause (b) of section 2, the concerned ministry may form a group of experts and conduct necessary investigations through that group and issue a variation order only on the basis of the recommendation received by the Government of Nepal, the Council of Ministers, and in the case of a public body referred to in clause (b) of section 2, the highest executive body of that body may form a group of experts and conduct necessary investigations through that group and issue a variation order only on the basis of the recommendation received by the group.

3) Notwithstanding anything contained in clauses (a) and (b) of sub-section (1), an officer lower than the officer approving the cost estimate shall not issue a variation order.

4) Notwithstanding anything contained in sub-section (1), a variation order exceeding fifteen percent of the procurement work up to six hundred thousand rupees may be issued by the departmental head.