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Contracts & Pricing

Contract Variation

A contract variation is a formal change to the agreed scope, price, timeline or terms of an existing contract, made with both parties' consent.

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Requirements rarely stay static over the life of a contract, so a variation provides a controlled way to adjust scope, quantities, pricing or delivery dates without starting again. It should follow the change mechanism written into the contract, be documented in writing and be approved by someone with the appropriate authority before the work or supply changes.

Uncontrolled variations are a common source of cost overrun and dispute, especially where verbal instructions outpace paperwork. Recording each variation — what changed, why, its cost and who approved it — keeps the contract value transparent and defensible. A well-managed variation log also protects the original competitive basis on which the contract was awarded.

Frequently asked questions

What is a contract variation?
A contract variation is a formal, mutually agreed change to the scope, price, timeline or terms of an existing contract, made under the contract's change mechanism.
Why should contract variations be documented?
Written variations prevent cost overruns and disputes by recording exactly what changed, why, at what cost and who approved it, keeping the contract value transparent and auditable.

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