Interfront 2025 Annual Report

INTERFRONT ANNUAL REPORT 2025 06 Contract Variations and Expansions Contract variations or expansions occur when the original terms and conditions of a contract are altered after it has been awarded. This can include changes to the following: • The scope of work. • Contract duration. • The contract value is usually determined through additional costs. • The quantity or quality of goods or services to be delivered is determined. Regulatory Guidance National Treasury Instruction Notes require the following: • Any variation or expansion of a contract must be justified and approved by the relevant authority. • The extent of the variation or expansion should be within a prescribed limit (often 15–20% of the original contract value, though this may vary based on specific regulations). • Proper documentation and motivation for changes must be maintained to ensure transparency and accountability. • Approval from National Treasury may be required if the expansion exceeds certain thresholds. Purpose and Risks The purpose of regulating contract variations and expansions is to prevent irregular expenditure and ensure that changes to a contract do not undermine the integrity of the initial procurement process. ROJECT DESCRIPTION NAME OF SUPPLIER CONTRACT MODIFICATION TYPE EXPANSION OR VARIATION CONTRACT NUMBER ORIGINAL VALUE OF CONTRACT R000 VALUE OF PREVIOUS EXPANSION/S OR VARIATION/S (IF APPLICABLE) R000 VALUE OF CURRENT CONTRACT EXPANSION OR VARIATION R000 There were no reportable variations exceeding the permissible 15% threshold. 118