Category: Contracts & management
Prepared by Eng. Ahmed Fathy, Projects Manager ·
Definition
A variation order is a written instruction from the owner or consultant to add, omit or change work, with its effect on price and time.
Why it matters on a project
Extra work done without a written variation is hard to recover later. Recording it before doing it is the protection.
Measurement and pricing
Priced at BOQ rates where they apply, at similar rates, or by a new rate analysis.
Common mistake
Carrying out changes on a verbal site request and claiming them at the end of the job.
Frequently asked questions
Can a contractor refuse a variation?
It depends on the contract; usually it must comply, with a right to price and time, unless the change goes beyond the contract.
How is a new item priced?
From similar BOQ rates where possible, or by a new rate build-up agreed by both parties.
Related terms
- Extension of time (EOT)The contractor’s entitlement to additional time for delay not of its making, subject to timely notice.
- Provisional sumAn amount included in the contract for work not yet defined, spent on actuals.
- Unit rateThe item price per unit of measure, built from material, labour and equipment then indirect costs and profit.
- RFI (request for information)A formal request from the contractor to clarify a gap or conflict in drawings or specifications before execution.
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