What is a variation order in construction?
A variation order is a formal instruction that changes the contracted work: adding, removing or altering items after the contract is signed. It should record the changed quantity, the agreed rate and the effect on time, so the extra work can be billed.
Also called: Change order, VO, Extra item, Deviation.
Work done on a verbal instruction, with no written variation, is the most common reason a contractor’s claim is certified for less than was billed.
In ERP Infra
Budgets and client bills are held per site against the items of work, so extra work shows as a difference between what was claimed and what was certified.
Money owed to you: how it worksLet’s put every site on one screen.
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