What is a variation order?
A variation order (VO) is an instruction that changes the work described in the contract: adding or omitting work, changing quantities, quality, specification, levels or positions, or changing the sequence or timing. Under PSSCOC 2020, a variation is any change in the original contract intention as deduced from the contract as a whole. A properly instructed variation adjusts the contract sum and may entitle the contractor to more time.
From the RRD Field Guide, checked against the sources cited in Variation Orders and Provisional Sums: How to Stop Surprise VOs on Singapore Building Works. General information, not advice for your project.
The fuller picture
Surprise variation orders usually come from scope that was never fully defined, items excluded from the quote, provisional sums used as placeholders, and concealed site conditions. Owners reduce them by defining scope in drawings and an itemised schedule, pricing exclusions when comparing quotes, requiring written instructions and quotations before varied work starts, and agreeing valuation rules in the contract.
More questions on this topic
- What is the difference between a provisional sum and a prime cost sum?
- Is a lump-sum quotation fixed no matter what?
- Can a contractor claim for variations done on verbal instructions?
- How are variations valued?
- What are dayworks?
- How should I compare quotations with different exclusions?
- Who bears the cost of concealed conditions found during A&A works?