Every subcontractor knows the moment: the supervisor walks the site and asks to move a wall, add an opening or change a material. "Go ahead, we'll sort it out later." The work gets done, and then the final account shows there's no approval for it. What looked like extra income turns into pure cost.
Why it happens
On site, time pressure beats procedure. Nobody wants to stop work for a form. But without a signed document, the subcontractor has nothing to base a payment claim on, and whoever gave the instruction won't always be available to approve it after the fact.
Five rules for collecting variations
- Record it immediately. Every instruction for extra work is logged the same day: what was asked, who asked, when, and where. A before-and-after photo from site helps a great deal.
- Ask for written approval. Even a short message from the supervisor is better than nothing. Best of all: a signed variation order form before the work is done.
- Price it quickly. A variation submitted months after the work is harder to approve. Submit quantities and pricing within days.
- Track the status. Every variation is in one of a few states: submitted, approved, partly approved, rejected, or carried out without approval. You need to know at any moment how much money sits in each state.
- Don't wait for the final account. Approved variations go into the next interim application, not the end of the project.
What it looks like in a profitability report
A good subcontractor profitability report shows three pictures: the contract alone, with approved variations, and with variations not yet approved. The gap between the second and third pictures is the money still at risk, and that is exactly where to act.
What else erodes profit
Variations are only part of the picture. Quantity cuts in your application without measurement, penalties deducted without appeal, material orders beyond the cost estimate and supplier invoices for more than was delivered all look small on their own and add up to significant sums.
FAQ
What do you do about work already done without approval?
Record it as soon as possible, with photos, dates and the name of whoever gave the instruction, and submit it for approval with all the documentation.
Can you refuse to do work without a variation order?
That depends on the contract with the main contractor. Check what the contract says about changes before you get to that point.
