Project Implementation - Contract modification -

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Presentation transcript:

Project Implementation - Contract modification -

Contract modification – Addenda (2.10) Contractor’s request should not automatically be accepted – there must be justified reasons for modifying a contract Contract modifications formalised through an Addendum (Annex A7) to the contract Signed by contracting parties, endorsed by the EC Delegation Addendum needs to be duly justified and an Explanatory note must be prepared (Annex A6) Modifications can not be retroactive Major changes (fundamental changes to TS) can not be covered by an addendum Unit prices remain the same Must be made at least 30 days before end of initial contract (except for the duly justified cases and CA’s acceptance)

Contract modification (4.6) Tools: Addenda Administrative orders – for rather minor modifications Variations Under no circumstances can a Contracting Authority increase the budget of the initial supply contract or purchase equipment that was not included in the Technical Specifications of the initial Tender Dossier and subsequent Contract. The only exception to the rule, is for additional deliveries by the original Supplier, intended either as partial replacement of supplies in the original contract, or as an extension of existing supplies, where change of Supplier would oblige Contracting Authority to purchase equipment with different characteristics, incompatible with the one already acquired.

Contract modification – Addenda (2.10) General principles: 1. Contractor’s request should not automatically be accepted – there must be justified reasons for modifying a contract 2. Request for addendum should be submitted to the CA at least 30 days before the amendment is intended to enter into force (except for the duly justified cases and CA’s acceptance) 4. The purpose of the addendum must be closely connected with the nature of the project covered by the initial contract

Contract modification – Variations (GCC Art. 2.10) - Variations, are allowed for the proper completion and/or functioning of the supplies. Variations may include: additions, omissions, substitutions, quality, quantity, etc drawings, design, specifications – where supplies are to be specifically manufactured for the Contracting Authority Method of shipment or packing, place and sequence of delivery, method or timing of implementation Quantities may vary within a percentage stated in the Special CC, but total value of supplies may not vary by more than 25% of the Contract Price. Variations within a contract are formalised through Administrative Orders (minor) or Addenda (significant).