a variation refers to a change to the scope of work under a contract . This change can involve modifications to the work that contractors or consultants are required to perform, and can be directed by the principal or superintendent

Key Characteristics of a Variation

A variation can be described as an alteration to the scope of works laid out in a construction contract . It is a formal document issued to modify the original scope of work in a construction contract .

Types of Variations

Variations can be simple or complex, and can involve changes to the services to be provided under a construction project . They can be valued by applying bill or schedule rates, or by using daywork rates with an agreed charge .

Importance of Managing Variations

It is essential to keep variations to a minimum to avoid cost overruns and potential disputes . Effective management of variations involves assessing the need for the variation, drafting the contract variation, and obtaining necessary approvals.

Variations can have significant implications for a construction project, affecting the timeline, cost, and resources required. They typically require formal documentation and approval processes to ensure that all parties involved—such as the client, contractor, and subcontractors—are aware of and agree to the changes. This often involves issuing a variation order or change order, which outlines the details of the change, its impact on the project, and any adjustments to the contract price or schedule.

Managing variations effectively is crucial to maintaining project control and ensuring that the construction project remains on track and within budget. In Australia, as in many other jurisdictions, construction contracts often include specific clauses detailing how variations should be handled, including procedures for notification, valuation, and approval.