BPP tightens rules on contract variations, centralises approvals, final designs

From Juliana Taiwo-Obalonye, Abuja**

The Bureau of Public Procurement (BPP) has issued sweeping guidelines that centralise the review of contract variations and make the use of final designs mandatory for all federal public procurements, saying the move is intended to curb “cost inflation and scope creep” and strengthen fiscal discipline.

In a statement issued by the Head of Press and Public Procurement, Zira Nagga, dated May 16, 2026, the Bureau said the new Guidelines on the Implementation of the Revised Policy of the Federal Government for Variations of Contract Sums and Mandatory Use of Final Designs were issued pursuant to Sections 5(a) and (o) of the Public Procurement Act, 2007 — to implement a policy approved by the Federal Executive Council and communicated in a December 2025 SGF circular.

“The guidelines reinforce the Federal Government’s commitment to fiscal discipline, transparency, and value for money under the Renewed Hope Agenda,” BPP Director-General/CEO Adebowale Adedokun is quoted as saying in the release. “Variations must not become a backdoor for cost inflation and scope creep. These guidelines ensure that every adjustment to a public contract is necessary, justified, and delivers value to Nigerians. The BPP will apply these rules rigorously and fairly across all MDAs.”

Under the new framework, all Ministries, Departments and Agencies (MDAs) must submit requests for variation orders, fluctuation claims and scope modifications directly to the BPP for review and certification. “No variation or fluctuation claim shall proceed to the relevant Approving Authority without a BPP Certificate of No Objection,” the Bureau said.

The statement stressed that a BPP certificate will serve as regulatory clearance to proceed to the approving body but “does not constitute approval for payment,” and will be valid for six months.

The Bureau warned that “variations, fluctuation claims, and scope additions processed without BPP certification will attract sanctions under the PPA 2007, including suspension of officers and debarment of contractors.”

The guidelines set out objectives and principles aimed at transparency and legal compliance, and prescribe that variations will only be approved where they are “genuinely necessary, could not have been foreseen with reasonable diligence, and do not fundamentally alter the original scope of the contract.” Unit rates for varied works must be consistent with the original contract rates, the Bureau said.

Permissible grounds for variation include unforeseen site conditions, material errors in design and BOQ/BEME, statutory or regulatory changes after contract execution, “significant price escalation due to macroeconomic shocks or force majeure,” and value-engineering improvements that reduce cost without altering scope. By contrast, “variations arising from inadequate planning, avoidable design flaws, or addition of new components not contemplated in the original scope will not be accepted,” the guidelines state. Such additions must be procured as separate contracts.

On fluctuation claims — adjustments for labour, material and exchange-rate changes — the BPP said these must be handled strictly according to contract conditions. “Contractors who deliberately delay projects to generate fluctuation claims will be denied such claims and may be debarred if claims are found to be bogus or overstated,” the Bureau warned.

To reduce avoidable changes, the policy mandates that all procurements be based on approved final designs. The BPP said that “use of preliminary or flawed designs that lead to unnecessary variations will attract regulatory sanctions.”

MDAs seeking certification must supply a comprehensive bundle of documents, including a forwarding letter signed by the Accounting Officer, the original contract agreement and BOQ/BEME, revised BOQ/BEME and final designs, backup calculations, progress reports and photographs, technical assessment of contractor capacity, interim valuation certificates, and supporting invoices and delivery notes for fluctuation claims.

The guidelines replace the 2013 circular that required Presidential approval for variations above 15% of the initial contract sum or ₦1 billion. Instead, the BPP has set monetary thresholds that determine the appropriate approving authority based on the augmentation sum — not the total revised contract cost.

For works, the thresholds are: variations of ₦10 billion and above to the Federal Executive Council/National Judicial Council/National Assembly Tenders Board; ₦5 billion to below ₦10 billion to Ministerial Tenders Boards/National Assembly; ₦75 million to below ₦5 billion to Parastatal/Judicial Tenders Boards. Variations below ₦75 million for works and ₦50 million for goods and services are approved at Accounting Officer level, the Bureau said. Similar thresholds apply for goods and services.

The BPP also imposed new publication requirements. Within 30 days of Tenders Board approval, MDAs must publish on their websites and on the BPP portal the contractor’s name, original contract sum, augmentation sum, revised contract sum and the grounds for the increase. The Bureau added that it will periodically submit council notes to the Federal Executive Council on reviewed and approved variations.

The policy takes immediate effect and applies to all ongoing projects irrespective of when the original contract was awarded. MDAs were directed to bring the guidelines to the attention of Accounting Officers, Tenders Boards and Procurement Officers for strict compliance.