ABUJA – The Bureau of Public Procurement (BPP) has released a new set of guidelines governing contract variations and the mandatory use of final designs for all public‑sector projects. The guidelines, announced by Zira Nagga, Head of Press and Public Relations at the BPP, come after the Federal Executive Council approved a revised policy on contract amendments earlier this year.
Issued under Sections 5(a) and 5(o) of the Public Procurement Act 2007, the directives replace the 2013 circular that required presidential sign‑off for any revised estimated total cost (RETC) exceeding 15 percent of the original contract value or N1 billion. Under the new framework, the Service‑Wide Prior Review and relevant monetary thresholds will determine the approving authority for any variation or scope change.
All ministries, departments and agencies must now forward requests for variation orders, fluctuation claims and scope modifications directly to the BPP for certification. No such request will be considered by a tender board or other approving body without a BPP Certificate of No Objection. The certificate confirms regulatory clearance but does not constitute payment approval; it remains valid for six months.
The revised policy emphasizes transparency, fiscal discipline and value for money. Variations will be approved only when they are genuinely unavoidable, could not have been foreseen with reasonable diligence, and do not fundamentally alter the original scope of work. Unit rates for varied works must align with the rates set in the original contract. Permissible grounds for variation include unforeseen site conditions, design or Bill of Quantities errors, statutory or regulatory changes after execution, significant macro‑economic price escalations, force‑majeure events and value‑engineering measures that reduce cost without expanding scope. Additions arising from poor planning, design flaws or new components not contemplated in the original contract will be rejected and must be procured as separate contracts.
Fluctuation claims—those relating to changes in labour, material or exchange‑rate costs—must be handled strictly according to the contract terms. Contractors found deliberately delaying projects to generate such claims may be denied payment and face de‑barring.
The guidelines also standardise the approval hierarchy based on the monetary value of the amendment rather than the revised total contract cost. Variations of N10 billion or more require clearance from the Federal Executive Council, the National Judicial Council or the National Assembly Tenders Board. Amendments between N5 billion and N10 billion go to Ministerial Tenders Boards or the National Assembly, while those between N75 million and N5 billion are handled by parastatal or judicial boards. Variations below N75 million for works and N50 million for goods and services are approved at the accounting officer level.
To promote accountability, ministries must publish details of approved variations—including contractor names, original and revised sums and the justification—on both their own websites and the BPP portal within 30 days of board approval. Failure to obtain BPP certification before processing a variation, fluctuation claim or scope addition will attract sanctions under the Public Procurement Act, ranging from suspension of officials to de‑barring of contractors.
Dr Adebowale Adedokun, Director‑General of the BPP, said the new guidelines reinforce the federal government’s commitment to fiscal prudence and transparency under the Renewed Hope Agenda. “Variations must not become a backdoor for cost inflation or scope creep. These rules ensure every adjustment to a public contract is necessary, justified and delivers value to Nigerians,” he said.
The policy takes immediate effect and applies to all ongoing projects, regardless of when the original contracts were awarded. Ministries have been instructed to brief accounting officers, tender boards and procurement staff on the new requirements. For further clarification, agencies may contact the bureau at info@bpp.gov.ng.
