This excerpt taken from the CTRP 20-F filed Jun 26, 2006.
SECTION 8 - VARIATION
29. Alteration of the Design
29.1 During the execution of the Works, the Employer shall give a not less than 14 days notice to the Contractor before any alteration of the design of the Works has been determined by the Employer which in his opinion is necessary for the purpose of the Works. In case of the variation refers to a higher standard than the original designation or is beyond the permitted scope for Construction, the Employer shall make applications to the Planning Authority and other authorities review the alteration for approval. The original Designer shall be responsible for providing the revised Drawings and related descriptions accordingly. The Contractor shall then, in accordance with the notice of such alteration and relevant requirements given by the Engineer, make the following alterations:
(a) changes the levels, lines, positions, and dimensions of any part of the Works;
(b) increase or decrease the quantity if any work included in the Contract;
(c) change any specified sequence or timing of construction of any part of the Works;
(d) execute additional work or any kind necessary for the Completion of the Works.
The Employer shall be responsible for the adjustment for the changes in Cost and the losses which the Contractor suffered due to the variation, and an extension of the Time for Completion of the Works shall be entitled to the Contractor.
29.2 The Contractor shall not make any such variation without an instruction of the Engineer. The Contractor shall be liable for the additional costs attributable to such default or breach of the Contract and the direct damages to the Employer, and he shall proceed the Works in accordance with the Contract.
29.3 During the execution, the suggestions of the Contractor, as concerning the variation and amendment of the Drawings, the arrangement and replacement of the materials, shall be reasonably accepted until the issue of the approval of the Engineer. The costs of such variation which shall be added to the Contract Price and the reasonable profit shall be negotiated by the two parties respectively.
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30. OTHER VARIATIONS
The two parties shall negotiate in the event of the variation or adjustments required by the Employer in the Quality of the Works or any other characteristic changes in the Works.
31. VALUATION OF VARIATION
31.1 The Contractor shall, within 28 days after the variation is approved, submit report on the adjustment of the costs for the Works. The Contract Price shall not be changed unless such adjustment has been approved by the Engineer. Otherwise stipulated in Sub-Clause 23.2 and Sub-Clause 23.3 of the General Conditions, the Contract Price shall be adjusted by the following methods:
(a) The rates and the prices in the Contract shall be used as the basis for valuation so far as may be reasonable; or
(b) The similar rates and prices in the Contract shall be used as the basis for valuation in the event of the lack of the corresponding rates contained in the Contract; or
(c) Provided that of the nature of the amount of any varied work relative to the nature or amount of the whole of the Works or any part thereof, is such that, in the opinion of Engineer, the rate or price contained in the Contract rendered inappropriate or inapplicable, then a suitable rate or price shall be agreed upon between the Contractor and the Engineer after the due consultation by the Engineer with the Employer and the Contractor.
31.2 The variation shall not be deemed to be the variation affected the adjustments of the Contract Price without the aforesaid report sent pursuant to Sub-Clause 31.1.
31.3 If the Engineer does not reasonably respond with the approval within 28 days from the date receiving the aforesaid report sent by the Contractor, it shall be deemed to indicate the approval of the Engineer.
31.4 In event of the disagreement of the variation by the Contractor, the Adjustment of the Price shall be settled under Article 38.
31.5 The amount of the increased price, which shall be added to the Contract Price, which has been approved by the Engineer shall be paid to the Contractor for such varied works.
31.6 The Contractor shall not be entitled to the amount of the costs of the varied works if the variation is due to his default or breach of the Contract.
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