Free Variation Order Generator

Variation orders in construction contracts

A variation order (also called a change order) is a formal document that records changes to the original scope, cost, or timeline of a construction contract. In Australian construction, variations are governed by the contract conditions - whether AS 2124, AS 4000, or bespoke head contracts - and must be documented in writing to be enforceable.

Without a signed variation order, contractors risk performing additional work that the client disputes or refuses to pay for. Equally, clients risk scope creep and cost blowouts when variations are agreed verbally but never formalised. A clear variation order process protects both parties and maintains an auditable trail of how the contract value has changed over time.

A compliant variation order should include: the variation number and date, a description of the changed work and the reason, itemised costs with quantities and rates, the impact on the total contract value, any extension of time requested, and signatures from both parties confirming agreement.

How to use this variation order generator

1. Enter the contractor and client details, including ABNs and addresses.
2. Add the project name, contract number, and site address to link the variation to the correct contract.
3. Describe the variation - what changed, why, and who requested it.
4. Add line items with quantities, units, and rates. The tool calculates amounts and GST automatically.
5. Record the impact on the contract value and any time extension required.
6. Download the PDF for signatures and filing against the contract.

Does a variation order need to be signed before work starts?

Best practice is to obtain written approval before commencing varied work. However, many contracts allow for directions to proceed issued verbally or in writing, with the formal variation order following. The key risk of proceeding without a signed variation is that payment may be disputed. Always refer to your specific contract conditions for the required process.

How does GST apply to variations?

GST applies to construction variations the same way it applies to the original contract - typically at 10% on the variation amount. The variation order should clearly state whether amounts are GST-inclusive or exclusive to avoid confusion when the corresponding invoice is raised. This generator calculates GST at 10% on the net variation amount.