Who must sign a variation agreement?

The parties identified in the original contract or those with delegated authority should sign. Confirm signing limits and obtain signatures from the owner, contractor, and any affected subcontractor if contractually required.

Can work start before the variation is signed?

Only if the contract permits provisional work or a verbal instruction with written confirmation follows. Starting work without authorization risks nonpayment unless a subsequent approved variation retroactively authorizes the work.

How should cost overruns be documented?

Document cost drivers, attach subcontractor quotes and timesheets, and use the valuation method in the variation. Keep contemporaneous records to support any claim for additional compensation.

Is notarization required for changes?

Not typically, unless the contract or state law requires it. Check the contract and state notary rules; public contracts often require additional authentication or certification.

Can a variation change contract completion date?

Yes. Any agreed extension or reduction should be expressly stated in the variation, with clear revised milestones and acceptance by the party entitled to grant extensions.

How long should signed variations be retained?

Retain signed variations for the contract term plus at least three years; longer retention applies for tax or regulatory reasons (see IRC §6501(a) and 45 CFR §164.530(j) for HIPAA contexts).

Electronic Signature
Templates
Real estate
Building Variation Agreement

Building Variation Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

BUILDING VARIATION AGREEMENT

Agreement Date: This Building Variation Agreement ("Agreement") is entered into by and between ("Builder") and ("Owner") and amends the original contract dated .

1. Property Identification

Property Address Parcel / APN Number Legal Description

2. Parties and Contacts

Builder - Full Legal Name Builder - Address Builder - Contact Owner - Full Legal Name Owner - Address Owner - Contact

3. Variation Particulars

Variation No.: Variation Date:

Detailed Description of Variation Reason for Variation

Attachments (check all that apply) Plans / Drawings Specification Changes Material Samples Other

4. Financial Adjustments

Original Contract Sum Variation Price Adjustment (positive or negative) New Contract Sum (if known)

Payment for this Variation shall be made: Additional deposit required:

Late Payment Charge

Tax Treatment Price includes applicable taxes Price exclusive of taxes (taxes to be added)

5. Time for Completion

Effect on Substantial Completion: Extension of days. Revised Completion Date:

Liquidated damages, if any, shall be applied as set forth in the original contract and adjusted to account for the time extension granted by this Variation. The Builder shall not be liable for delays caused by events beyond Builder's reasonable control, except as provided in the original contract.

6. Approvals, Inspections and Compliance

Who is responsible for obtaining approvals? Builder Owner Third party / Other

All work performed pursuant to this Variation shall comply with applicable codes, permits and statutory requirements. Builder warrants that materials and workmanship shall conform to the revised specifications and industry standards for a period of from substantial completion of the varied work.

7. Risk Allocation, Insurance, and Indemnity

The Builder shall maintain insurance coverage consistent with the original contract during performance of the variation, including general liability, workers' compensation and builder's risk as applicable. Owner shall be responsible for any increases in insurance costs directly attributable to the Variation and shall reimburse Builder upon presentation of evidence of such increase.

Each party shall indemnify and hold the other harmless from and against claims, damages and liabilities arising from the indemnifying party's breach of this Agreement, negligence, or willful misconduct in performance of the varied work.

8. Hazardous Materials and Disclosures

Variation involves alteration of materials that may contain lead, asbestos or mold No such materials affected

If hazardous materials are encountered, the Builder shall stop work in the affected area and notify the Owner. Remediation and compliance with applicable laws shall be undertaken at the expense of the party responsible under applicable law or as otherwise agreed in writing.

9. Default; Remedies

Except as modified by this Agreement, the default and remedy provisions of the original contract remain in full force. If either party fails to perform an obligation under this Variation, the non-defaulting party shall have the remedies provided in the original contract and under applicable law.

10. Dispute Resolution

Any dispute arising under or related to this Variation shall be resolved in accordance with the dispute resolution procedure set forth in the original contract, including negotiation, mediation, and, if necessary, arbitration. Costs of dispute resolution shall be allocated as provided in the original contract unless otherwise agreed in writing.

11. Governing Law; Entire Agreement

This Agreement shall be governed by and construed in accordance with the laws governing the original contract. This Variation, together with the original contract and any prior variations expressly referenced herein, constitute the entire agreement between the parties with respect to the matters addressed herein and supersede all prior agreements and understandings, whether written or oral, relating to such matters.

12. Execution and Acknowledgment

By signing below the parties acknowledge and agree that they have authority to bind their respective principals, that they have read and understand this Variation, and that this Variation becomes effective upon execution by both parties.

Owner:

By:

Date:

Builder:

By:

Date:

What a Building Variation Agreement Is and When it Applies

A Building Variation Agreement documents changes to scope, cost, schedule, or specifications for a construction project after the original contract is executed. It records agreed adjustments such as additional work, substitutions, omissions, or variations in materials and labor rates, and allocates responsibility for cost and time impacts. The document typically includes a description of the variation, pricing or valuation method, effect on the project timeline, any required approvals or signatures, reference to the original contract clause authorizing variations, and an effective date to avoid disputes.

Why a Clear Variation Agreement Matters

A written Building Variation Agreement reduces disputes, creates an audit trail for payments and schedule changes, and clarifies which party bears cost and delay risk. It preserves entitlement to change orders and supports accurate recordkeeping for invoicing, lien waivers, and potential insurance or claims processes.

Who Typically Prepares and Signs a Variation Agreement

Several project stakeholders prepare or approve building variations depending on contract delegation and value thresholds.

General contractors and project managers who assess site conditions and prepare costed change proposals for owner approval.
Subcontractors who submit proposals for altered scope, pricing, or sequencing that the main contractor will accept or reject.
Owners or developer representatives who approve variations, confirm budget authority, and sign off on schedule impacts.

Essential Elements to Include in a Professional Variation Agreement

A robust Building Variation Agreement should be concise but complete, linking the change directly to contract clauses and specifying valuation, time effect, approvals, and recordkeeping requirements.

Variation Description

Clear narrative of the change, reference to affected drawings or specs, and identification of the work location within the project.

Valuation Method

Firm price, unit rates, time-and-materials cap, or agreed formula; include supporting cost breakdowns and contingencies.

Time Impact

Number of calendar or working days added or reduced, effect on milestones, and concurrency considerations for delays.

Approvals

Names, roles, and limits of persons required to approve the variation, plus signature blocks and dates for each party.

Contract Reference

Cite the original contract, clause authorizing variations, and any related purchase orders or change request numbers.

Payment Terms

When the variation will be invoiced, any retainage adjustments, lien waiver or certified invoice requirements, and due dates.

Step-by-Step: How to Prepare and Execute a Variation Agreement

Follow a standard sequence to document, approve, and implement a variation without interrupting site activities or payment cycles.

01

Identify Change: Document scope and reason.
02

Estimate Cost: Prepare pricing and supporting records.
03

Assess Time: Determine schedule impact.
04

Seek Approval: Collect required signatures.

How to Configure an Online Variation Workflow

Set up a repeatable digital workflow to route variation requests, capture approvals, and store signed records for auditability.

Field	Configuration
Variation Number Field	Auto-numbering enabled to prevent duplicates.
Cost Attachment	Require supporting invoice or estimate upload.
Approval Routing	Conditional routing by value thresholds.
Signature Block	Role-based signer assignment with date field.

Where to Send and How the Variation Moves Through Approval

A typical routing path ensures the proposing party, project manager, finance, and owner receive the variation in sequence or in parallel per contract rules.

Submitter: Uploads variation and attachments.
Project Manager: Reviews scope and cost accuracy.
Finance: Verifies budget and payment terms.
Owner: Provides final approval and signature.

Options for Sharing and Signing Variations

Choose distribution and signing methods that match project risk, required authentication, and record retention policies.

Email + PDF: Simple delivery; lower authentication strength.
Secure eSignature: Strong audit trail and timestamped signatures.
Remote Notary: Required where notarization is contractually specified.

Common Timelines and Deadlines to Watch

Variation processing has time-sensitive elements: notification windows, approval deadlines, and invoice submission dates that affect entitlements.

Notice Periods:

Many contracts require notice within 7–30 days of discovering change.

Approval Turnaround:

Owners often have 7–21 days to respond, per contract terms.

Invoice Submission:

Submit variation invoices within the billing cycle to avoid payment delay.

Schedule Adjustments:

Record agreed schedule changes immediately to preserve claims.

Dispute Windows:

Some contracts limit claims to a set period after completion.

Key Milestones from Request to Implementation

Track these sequential milestones so cost and time impacts are managed and documented at each stage.

01

Request Logged

Variation is submitted and assigned an ID.

02

Technical Review

Assess feasibility and prepare scope definition.

03

Commercial Review

Price and payment terms are negotiated.

04

Execution

Signed variation goes into effect and work proceeds.

Common Mistakes to Avoid When Preparing a Variation

Failing to tie the variation to a specific contract clause or reference number, which can make the change unenforceable.
Using vague scope language like 'additional work as required' instead of clear, measurable descriptions of tasks.
Submitting cost estimates without supporting documentation such as subcontractor quotes or time sheets, triggering disputes.
Missing required approvals or signatures, especially when the contract requires owner or engineer sign-off before work begins.

Consequences of an Incorrect or Unapproved Variation

Payment Delay: Undocumented changes may be unpaid until agreement is formalized.

Liability Shift: Contractor may absorb costs if approval rules were not followed.

Schedule Disputes: Unrecorded time impacts can invalidate extension claims.

Lien Vulnerability: Missing certified invoices can weaken lien rights.

Contract Breach: Unauthorized work could be treated as a breach.

Regulatory Risk: Permit or code changes may incur fines if not updated.

Comparing eSignature Options for Executing Variation Agreements

Select an eSignature provider that supports required authentication, record retention, and any HIPAA or industry compliance the project demands.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Trial available	Trial available	Trial available	Trial available
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Real-World Examples of Variation Agreements

These brief examples show how variations are documented and applied on live projects.

Mid-Size Residential Remodel

A contractor found a concealed beam needing reinforcement and submitted a VAR-012 with cost and 10-day extension

Owner approved after review of structural memo
The signed variation included a line-item cost breakdown and revised completion date, preserving the contractor's entitlement to increased compensation.

Public Works Road Repair

During roadway excavation, differing subsurface conditions required an additional backfill method and extra testing

Engineer prepared a variation proposal with unit rates
The agency executed the variation under delegated authority with a change order number and updated payment schedule.

Frequently Asked Questions About Building Variation Agreements

Answers address common execution, approval, and enforceability questions encountered on construction projects.

Need help? Contact support

Who must sign a variation agreement?
The parties identified in the original contract or those with delegated authority should sign. Confirm signing limits and obtain signatures from the owner, contractor, and any affected subcontractor if contractually required.
Can work start before the variation is signed?
Only if the contract permits provisional work or a verbal instruction with written confirmation follows. Starting work without authorization risks nonpayment unless a subsequent approved variation retroactively authorizes the work.
How should cost overruns be documented?
Document cost drivers, attach subcontractor quotes and timesheets, and use the valuation method in the variation. Keep contemporaneous records to support any claim for additional compensation.
Is notarization required for changes?
Not typically, unless the contract or state law requires it. Check the contract and state notary rules; public contracts often require additional authentication or certification.
Can a variation change contract completion date?
Yes. Any agreed extension or reduction should be expressly stated in the variation, with clear revised milestones and acceptance by the party entitled to grant extensions.
How long should signed variations be retained?
Retain signed variations for the contract term plus at least three years; longer retention applies for tax or regulatory reasons (see IRC §6501(a) and 45 CFR §164.530(j) for HIPAA contexts).

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now