Variation disputes are one of the most common (and costly) issues in construction projects. Misunderstandings around entitlement, unclear instructions, and lack of documentation often lead to delayed payments, strained relationships, and even legal battles.
To help contractors, project managers, and quantity surveyors navigate these challenges, our step-by-step action plan provides a clear, practical framework for managing variations effectively. From identifying the relevant contractual clauses, to preparing a robust valuation and presenting your case professionally, this guide – our final instalment of the Stop Leaving Money on the Table series – will help you resolve disputes confidently and protect your project’s profitability.
If you missed part one and two of our Stop Leaving Money on the Table series, where we covered The Importance of Understanding the Contract, and How to Value and Secure Payment for Variations, it’s worth catching up now.
Your Step-by-Step Action Plan for Resolving Variation Disputes
1. Identify the specific variation mechanism in your contract
Thoroughly review your contract’s variation clauses to understand the definitions of a variation and the valuation hierarchy that applies to your situation.
2. Confirm proper instruction and contractual entitlement
Before discussing valuation, verify the variation was properly instructed according to your contract and falls within its definition of a variation. If in doubt, issue a CVI.
3. Submit all required notices within contractual time limits
Protect your position by ensuring all contractual notices are submitted promptly, creating a clear paper trail of your intention to claim.
4. Document how conditions differ from original plans
Maintain detailed records of how the varied work differs from what was originally planned. Take photographs, keep daily diaries, and collect daily record sheets that demonstrate changes in working conditions.
5. Analyse the character of the varied work
Determine whether the variation involves work similar to what’s already described in the contract or represents something fundamentally different. This analysis is crucial for determining which valuation method applies.
6. Assess quantity changes objectively
If quantities have changed significantly, document both the original and actual quantities. Be prepared to produce marked up drawings and schedules showing the changes and also demonstrate how these changes affected efficiency and value of the works.
7. Prepare a valuation using the appropriate method
Based on your analysis, prepare a detailed valuation using the appropriate contractual mechanism. Include all supporting documentation, calculations and relevant cost records, if necessary.
8. Present your case clearly and professionally
When presenting your valuation to the other party, clearly explain your reasoning and the contractual basis for your approach. Focus on facts rather than opinions.
Prevention is Better Than Cure
The best approach to variation disputes is preventing them from escalating in the first place:
- Clear communication – Discuss potential variations openly before work begins
- Contemporaneous records – Document changes as they occur and avoid looking for records after the disputes arise
- Early agreement – Seek agreement on valuation methods early, even when final costs remain uncertain
- Progressive resolution – Resolve variations as they arise rather than leaving them for the final account
By establishing entitlement first and then taking a methodical, evidence-based approach to variation valuation, you will improve cash-flow, resolve disputes more efficiently, maintain better project relationships, and protect your commercial interests.
TAKE ACTION NOW: Don’t Let Another Variation Go Unpaid
Are the non-payment of variations eating into your profits? Our team of construction contract specialists can help you establish entitlement, prepare robust valuations and recover the money you’re owed.
Contact us today for a free 30-minute consultation to discuss your specific challenges and discover how our proven approach can transform your variation management process.
Call 01727 861510 or email us on [email protected] to improve your project’s profitability today.
