This article explains how to record variations to Standalone, Subcontract, and Head Agreement contracts to update their price, duration, or terms and conditions.
Prerequisites
Permissions: Access to manage the contract.
Contract Status: The contract must be in Active status to add variations.
Steps to Add a New Variation
Navigate to the Details tab of the contract and select the Variations sub-tab.
Click Add new.
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Enter information for the variation using the tabs at the top:
Details: General variation information.
Related Variations: To explore other variations related to the contract.
Documents: To attach relevant files to the variation being raised.
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Under Variation type, tick the relevant combination of Value, Duration, or Terms and Conditions.
Note: Head Agreement contracts can only be varied on duration and terms and conditions.
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Complete the specific details based on the selected type:
For Value variations: Enter the value changes. Standalone and Subcontract contracts support price variations, while Head Agreements do not as they have no value.
For Duration variations: Add the duration or new expiry date. Use Add extension option to add multiple extensions. Select whether the duration is automatically applied on approval or must be manually exercised.
For Terms and Conditions: Detail the changes. Use Add another variation to include multiple T&C changes.
Select a template at the bottom of the page.
Click Generate to create the document and submit the variation for approval.
Results / Validation
Draft Status: Variations initially have a Draft status. While in draft, variations affecting value are included in the contract's proposed value.
Approval: Once approved, the status changes to Approved.
Impact of Value Variations: The Current Value of the contract is updated. If a schedule of rates exists, a new line number is added for the variation value.
Impact of Duration Variations: Extensions are created in the extensions register to match the variation. The register shows all impacts, whether from pre-agreed extensions or variations.
Impact of T&C Variations: No changes are made to the contract record itself; changes are captured within the variation record.
Troubleshooting
Missing Value Variation Option: Ensure you are not editing a Head Agreement, as they do not support value variations.
Duration Not Updating: Check if the variation was set to "manually exercised" instead of "automatically applied".
Limits & Notes
Head Agreements: These are limited to variations in duration and terms because they do not have a set value.
Admin Note: Administrators can manage document generation templates using Mail Merge.
- Negative cost variations are supported: Adding a negative value will correctly reduce the Total Contract Value as expected.