What is a variation order?
A variation order (VO) - sometimes called a change order or instruction - is a formal written document that records an agreed change to the original scope of work. It records what has been added, omitted or changed, the agreed cost and any extension of time to the programme. Both parties sign it before the extra work begins.
A signed variation order forms a legally binding amendment to the contract. Without one, recovering payment for extras becomes extremely difficult - even if both parties have verbally agreed the change.
Never start extra work on a verbal agreement alone. Issue the variation order, get it signed, then proceed. A client who is happy to agree verbally on a Tuesday morning may have no recollection of the conversation by the time the final account lands.
What's included in the template
- VO reference number, date and project details
- Original contract value and original completion date fields
- Free-text description of the variation (reason and scope of works)
- 10-row itemised cost breakdown table (item, description, qty, unit, rate, total)
- Sub-total, VAT and total fields
- Revised contract value (original + this VO)
- Programme impact section - extension of time claimed, reason and revised completion date
- Agreement clause confirming both parties accept the cost and programme change
- Client, contractor and contract administrator signature blocks
Extension of time - when to claim it
If the variation adds work that extends the programme, you must also agree and record an extension of time (EOT). If you do not, the contract completion date remains unchanged and the contractor risks liquidated damages if the project overruns - even if the client's own instruction caused the delay.
The EOT should be agreed at the same time as the cost, not after the fact. Be realistic about the programme impact - clients generally accept a reasonable EOT claim more readily before the work starts than when they are already frustrated by delays.
