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Section 54
Variation Order

(1) If a situation that could not be foreseen at the time of making the purchase agreement is created during the execution of the agreement, the official may issue a variation order by following the prescribed procedure after revealing the clear reason:-
(a) a variation of up to five percent by a gazetted second class or equivalent head of the concerned public body,
(b) a variation of up to ten percent by a gazetted first class or equivalent head of a public body,
(c) Variation up to fifteen percent by the Head of Department,
(d) Variation from fifteen percent to twenty-five percent by the secretary of the concerned ministry or the head of the corresponding body,
(e) Variation above twenty five percent in the case of public bodies as per sub-section (1) of section (b) of section 2, by the Cabinet of Ministers of the Government of Nepal,
(f) In the case of a public body as per sub-section (2) of clause (b) of section 2, the variation above fifteen percent by the highest executive body of that body.
(2) When ordering variation according to clause (e) of sub-section (1), in the case of public bodies as per sub-section (1) of clause (b) of clause 2, the concerned ministry shall form a group of experts and carry out the necessary investigation through that group, on the proposal of the concerned ministry along with the recommendations received. The government of Nepal, the Council of Ministers and in the case of the public bodies under sub-section (2) of clause (b) of section 2, the supreme executive body of that body may issue a variation order only on the basis of the recommendation received after conducting the necessary investigation through the group of experts.
(3) Notwithstanding anything contained in clauses (a) and (b) of sub-section (1), no variation order shall be issued by an officer lower than the officer approving the cost estimate.
(4) Notwithstanding anything written in sub-section (1), the head of the department may issue a variation order of more than fifteen percent of the procurement up to six lakh rupees.