Variation

What counts as a variation

Variations cover any change instructed after contract signing — additional work, omissions, design changes, specification changes, scope clarifications, programme acceleration. They can originate from the client, the design team, the contractor (via early warning), or unforeseen site conditions.

Each variation captures cost impact (positive or negative) and programme impact (in days). On UK contracts, variations require written instruction; verbal site instructions are a common source of dispute.

How variations move through the commercial cycle

A variation is raised, instructed, priced, agreed, approved, and either implemented or omitted. Each transition is timestamped in the audit trail. Once approved, the cost flows into the PCSR's anticipated column and the cashflow's forecast line. At project closeout, the variations log feeds into the final account.

Net programme impact across all approved variations is reconciled with the master programme. The number presented to the client should match the variations log exactly — a common failure mode in Excel-based variation tracking.

Common pitfalls

• Verbal site instructions becoming variations. UK contracts require written instructions. Site verbal instructions ("just do it, I'll sign it later") are a leading source of variation disputes.
• Programme impact not captured. Many consultancies track variation cost meticulously and ignore programme impact. The result is a client who sees agreed cost but unagreed dates.
• Provisional vs firm pricing confusion. A variation that has been instructed but not yet priced should be in the PCSR anticipated column with a clear "provisional" flag. Many logs leave it out entirely until pricing is agreed, understating the project picture.

Related

• Variation management module →
• What is a JCT contract? →
• What is a compensation event? →