Variation of works in contracts awarded through… (Marius BÂRLADEANU)

Variation of works in contracts awarded through… (Marius BÂRLADEANU)

Variations and adjustments of construction works are generally recognized as sources of many disputes between employers, contractors and other professionals involved in construction industry. This is why standard clauses and mechanisms to mitigate such risks are a continuous concern for all professionals worldwide. Nevertheless, even a well built contractual mechanism is sometimes ineffective in front of a stronger rule: the public policy of the country whose law is governing the contract.
Such a particular case is contemplated in this article by reference to the legal framework applicable in Romania in relation to the public procurement of construction works. Contractors entering construction contracts awarded through a public procurement procedure under the Romanian law should be aware that a series of limitations may affect their ability to pursue claims under variation and adjustments clauses in the contract, even when such variations are duly initiated by employers or engineers before taking-over. At the same time, this article will detail on relevant thresholds and conditions which would make a new procurement procedure mandatory for contracting additional works or quantities and items required by a variation of already existing contracts.

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