Add a Variation to a Contract

  • Updated

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

  1. Navigate to the Details tab of the contract and select the Variations sub-tab.

  2. Click Add new.
    add-new-variation.gif

  3. 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.

  4. Under Variation type, tick the relevant combination of Duration, Value, Terms and Conditions or Schedule of Rates.

    • Note: Head Agreements can only be varied on duration and terms and conditions. They have no value or schedule of rates.

  5. Complete the specific details based on the selected type:

    • Variation to contract value: Enter the change in contract value. Use a negative amount to reduce it. Standalone and Subcontract contracts only.

    • Variation to schedule of rates: Add, edit or delete rows in the schedule, the same way you do on the contract. To close a line at the amount already claimed, select Cap at claimed on that row.






      Note: Changing the schedule does not change the approved contract value. If the variation affects the value, enter the change in Variation to contract value.

    • Duration: Add the duration or the new expiry date. Select Add extension option to add more than one extension. Choose whether the duration is automatically applied on approval or manually exercised.

    • Terms and Conditions: Describe the changes. Select Add another variation to include more than one change.

  6. Select a template at the bottom of the page.

  7. Click Generate to create the document and submit the variation for approval.

Results / Validation

  • Draft status: A new variation has the status Draft. While in draft, variations that affect value count towards the contract’s proposed value.
  • Approval: When approved, the status changes to Approved.
  • Value variations: The Current Value of the contract updates.
  • Schedule of rates variations: Your row changes are saved as the variation’s history record and applied to the contract’s schedule of rates. Claims draw down against the updated schedule. The contract value only changes if you entered a value variation.
  • Duration variations: Extensions appear in the extensions register. The register shows every impact, from pre-agreed extensions and from variations.
  • Terms and conditions variations: The contract record doesn’t change. The changes are kept in the variation record.

Troubleshooting

  • Can’t add a variation: Check that the contract is Active.
  • Contract value didn’t change after I edited the schedule of rates: Schedule changes don’t update the approved contract value. Open the variation, tick Variation to contract value, and enter the change.
  • Missing value option: You may be editing a Head Agreement. Head Agreements don’t support value variations.
  • Duration not updating: Check whether the variation is set to manually exercised instead of automatically applied.

Limits & Notes

  • Head Agreements: Limited to duration and terms and conditions variations, because they have no value or schedule of rates.
  • Schedule of rates and contract value: These are kept separate. Claims draw down against the schedule. Approvals use the contract value.
  • Negative variations: A negative value correctly reduces the total contract value.
  • Templates: Administrators manage document templates with Mail Merge.

What's Next / Related