By Dr Samer Skaik
Contractors frequently face ambiguous documentation on construction projects—especially when variation orders reference unstamped or unofficial documents. This can lead to disputes over warranty obligations, scope of work, and cost entitlements. In this post, we break down a case involving an unstamped specification, a signed variation order, and updated IFC documents containing new warranty clauses. Using the FIDIC 1999 contract as a guide, we’ll outline how such issues should be handled to protect both contractors and employers.
1. The Issue: A Swimming Pool Variation With Questionable Documentation
In a recent scenario, a contractor was issued Variation Order No. 1 for the construction of a swimming pool. The variation referenced IFC Revision 0.0, which included a list of drawings and an accompanying specification. While the drawings bore the official stamp, the specification—containing detailed warranty requirements—did not.
Later, an updated IFC specification introduced additional warranty clauses. The contractor rightly questioned whether these new obligations required a fresh variation order—and whether the original unstamped specification was even binding in the first place.
2. FIDIC’s View on Binding Documents
Signed Variation Orders Are Contractually Binding
Under FIDIC 1999, if a variation order is formally signed and refers to a specific set of documents (such as specifications), those documents become part of the contract—even if some components are unstamped. The contractor is considered to have accepted their terms, including any warranty obligations, by signing the variation.
Clause 1.5 – Priority of Documents:
This clause outlines the hierarchy of contractual documents. But it assumes that all referenced documents are valid. If unstamped documents have routinely been accepted throughout the project, the principle of estoppel may apply—meaning neither party can later claim they were invalid, simply because they lacked a stamp.
Clause 13 – Variations and Adjustments:
Any update to IFC documents that introduces new obligations—especially those affecting cost or time—should trigger a formal variation under Clause 13. For example, if a new warranty clause increases the contractor’s risk or liability, the contractor may be entitled to compensation or time extension.
3. The Legal and Practical Implications for Contractors
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Past Practice Matters: If both parties have accepted unstamped specs as valid during the course of the project, it’s hard to later claim they are unenforceable.
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Protective Action Required: Contractors should still insist that all contractual documents be issued formally—stamped and logged via official transmittals—to avoid disputes later.
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Don’t Ignore Updated Documents: If an IFC update introduces a new obligation post-VO, a contractor should immediately notify the engineer and request a formal variation order to cover the impact (as per Clause 13.3 and Clause 20.1).
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Clarify Contract Scope Early: Review the VO carefully before signing. If specifications are referenced, they become enforceable, whether stamped or not. Push for clarification or modification before accepting.
4. Practical Recommendations
✅ Before signing any Variation Order, verify whether it references additional documents (like specifications or sketches).
✅ Maintain a formal document control system—log all received IFC documents, stamps, transmittals, and revisions.
✅ Treat any new obligations in updated IFC documents as potential contract modifications, requiring formal approval under Clause 13.
✅ If in doubt, submit a formal clarification request or notify the engineer immediately to preserve your rights under Clause 20.1.
Conclusion:
In construction, clarity is currency. A simple missing stamp or post-VO change can dramatically shift risk and cost if not handled properly. Under FIDIC 1999, contractors must be vigilant about what they accept—formally or informally. By leveraging the proper clauses (1.5, 13, and 20.1), contractors can protect themselves from undocumented liabilities while maintaining professionalism and contractual compliance.
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