Variation Order (VO)
Definition
A variation order (also called a change order or instruction) is a formal instruction from the client or contract administrator instructing a contractor to carry out work that was not included in the original contract scope. Variations can increase or decrease the scope of work and affect both the contract price and the programme.
In construction tendering, this means...
Variations are one of the most contentious areas in construction contracts. GCs must price variations quickly and accurately, manage their subcontractors' variation claims, and maintain a clear audit trail of instructed changes. Failing to formally agree variations before the work is done is one of the most common causes of commercial disputes at project end.
Related terms
Takshy automates the parts of the tendering process that involve variation order (vo), extracting scope, managing documents, and keeping your workflow organised from first document to final award.
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Understanding the terminology is step one. Takshy handles the rest, from extracting scope from project documents to sending structured RFQs and managing the returns.
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