Question 1

What is a variation in construction?

Accepted Answer

A variation is any change to the original Scope of Works — additional items, specification changes, scope expansion, or rework caused by other parties. Variations require written approval before work proceeds.

Question 2

How much do unapproved variations cost subcontractors?

Accepted Answer

Australian subcontractors lose 4–7% of contract value annually to undocumented or unapproved variations. On a $2M project this is $80,000 to $140,000 in lost margin.

Question 3

What does a variation log need to contain?

Accepted Answer

A variation log records: date raised, description, trigger event, contract clause referenced, estimated cost, status (logged / submitted / approved / rejected), and approval evidence.

Variation Cost Estimator