What is a variation order, and what counts as a variation?
A variation order is your main contractor's written instruction to change your work, and most changes to your scope or conditions count.
Updated: . By Jack Butler-Kettle, Construction Claims Consultant.
The answer
Your subcontract may call it an instruction or a direction instead. Whatever its name, what matters is what it changes. A change usually counts as a variation if it alters the work your subcontract describes, or how, when or where you do it. That covers added or omitted work, a different quality or sequence, changed access and changed working conditions. Your subcontract decides exactly what counts and who has the authority to instruct it. So start by comparing what you are now being asked to do with what you priced. Use the drawings, specification, clarifications, amendments and design duties at the revision your subcontract names, not a tender drawing on its own. Then check who instructed the change and what route your subcontract sets for it. Keep the instruction, the source documents, the quantities affected and any notice or valuation rule together in one file. A change in scope does not on its own prove what you will be paid, or that you get more time. Each of those follows its own route under your subcontract.
Example
Illustrative example. The scenario and figures are invented.
The facts
An external works subcontractor's tender drawing shows 900 square metres of standard tarmac. Revision C shows reinforced concrete over the same area, with one access aisle kept open. The subcontractor needs to know what in that change counts as a variation.
What happens
- The subcontractor compares the tender drawing with revision C once.
- It records the change of specification and the access condition as two separate facts, so the same area is not counted twice.
- It checks who instructed the change, the notice and valuation rules that apply, and any effect on time.
The outcome
Whether either item is paid, and on what basis, depends on the subcontract and the evidence, not on the revision letter on the drawing.
To have every change on your job confirmed in writing and put on a register, see our Unpaid Variation Prevention service.