A variation account is a record that tracks the changes, additions and omissions made to the original scope of work set out in a construction contract. Variations can arise from design changes, differing site conditions, changes in the client’s requirements or other factors that affect the original scope, cost or programme of a project.
In quantity surveying, a variation account serves several purposes:
- Documentation: it records all the changes to the original scope of work, giving a clear and organised record of the adjustments made during construction.
- Cost management: it helps to monitor and manage the financial effect of changes on the project budget. Quantity surveyors use it to update cost forecasts and to make sure that additional costs are accurately accounted for and fairly allocated.
- Contract administration: by maintaining a variation account, quantity surveyors can check that the contractual requirements for variations are met, such as giving written notice, obtaining the necessary approvals and issuing formal instructions.
- Dispute resolution: a well maintained variation account can help prevent or resolve disputes, because it provides a transparent record of every change and its financial effect.
A variation account typically records a description of each variation, the reason for the change, its effect on cost and programme, and any relevant approvals or contractual requirements. Quantity surveyors play a central role in managing variation accounts, as they are responsible for assessing the cost of changes, negotiating fair valuations and making sure the contract provisions for variations are followed.
