Submitting variation claims as a contractor: how to identify, document, price and submit work that was not agreed
Submitting variation claims is a normal part of a contractor's work, because almost every project has something that was not agreed in advance and did not appear in the drawings. The difference between a variation that gets paid and one that gets rejected is usually not how justified it is but how orderly it is: notice on time, documentation, measurement and pricing that can be checked. This page is a guide to submitting variation claims from the contractor's side, including the difference between a lump-sum contract and a measured contract, when one sentence in the contract blocks a variation, and what happens when the contract is tied to a price list. I have experience in measuring quantities for variations and in getting them approved in payment applications, from the contractor's side and from the checker's side.
The five stages of submitting variation claims
- Identification: comparing the new drawing with the drawing attached to the contract, instructions given on site, and conditions found on the ground. Most variations are found by comparing drawing revisions.
- Written notice: before the work is done wherever possible, and within the time set in the contract. Late notice is the most common reason for rejection.
- Documentation: an entry in the site diary, dated photos, the supervisor's instructions and letters. What is not recorded is hard to prove months later.
- Measurement: measurement sheets or a quantity calculation file, exactly as for any other item in the account.
- Pricing and submission: a variation number, a full description, unit, quantity, price, and an explanation of where the price came from.
| Identification | → | Notice | → | Documentation | → | Measurement | → | Pricing | → | Approval | → | Payment in the account |
Lump sum or measured: what you can claim under each contract
There is always something that was not agreed, but what you may claim depends on the type of contract. In a lump-sum contract, a fixed price for a defined scope, the quantity risk is on the contractor, so a variation exists when the scope changed: an addition, a change of material, a change of drawing. In a measured contract (a remeasurement contract) the unit rates are fixed and the quantities are paid as built, so a variation is mainly a new item that has no price in the contract, or work in conditions different from those described.
| Topic | Lump-sum contract | Measured contract |
|---|---|---|
| What the price covers | A defined scope | A unit price |
| A larger quantity than expected | Usually not a variation | Paid by measurement |
| New work | A variation | A variation |
| What has to be proven | That the scope changed | That the item is not in the bill of quantities, or that the conditions changed |
When you can request a variation, and when the contract closes the door
Under both types of contract, measured and lump sum, you can request a variation, and under both you can reach a point where it cannot be obtained. What decides is not how fair the claim is, but three documents: the contract, the specification and the price list that the contract refers to.
- One sentence that blocks: a clause in the contract or in the specification stating that the work will be carried out to completion "without any claim for variations" is enough. Such a clause can stop even a justified claim, so it is read before the tender is priced, not after. What decides is the exact wording, and this is not legal advice.
- What the designer left out: a detail missing from a drawing, or an item that was not described in the bill of quantities, is a basis for a request, under a measured contract and under a lump sum too, as long as the contract has no clause that blocks it.
- What the price-list item includes: some well-known Israeli price lists include one metre of pipe in the rate for a plumbing point, and others include two metres. Pipe beyond the included length is an addition; pipe within it was already paid in the rate for the point. Gypsum board soffits are measured per linear metre in some price lists and per m² in others, and each method gives a different amount for the same soffit.
The point: the same work can be a variation under one price list and included in the price under another. So before submitting, check which specification and which price list the contract binds, and in which version. The gaps between the general specification and a private price list are on the page the general specification vs a private price list, and the rules of measurement on the page methods of measurement in Israel and worldwide.
In every case, a variation request needs a point to stand on: a clause in the contract, a line in the specification, a changed condition or a written instruction. Without one it is an argument, not a variation. In the Israeli market the person who finds these points and builds a variation from them is sometimes called a "variations engineer", although there is no such title. In practice this is the work of a quantity surveyor who knows the specification, the price lists and the site. A quantity surveyor may be an engineer or a registered building technician, like Yaakov Avital.
Four ways to price a variation
- An existing item: if the contract has an identical item, the variation is only an added quantity.
- A similar item: a price derived from a close item, with a reasoned adjustment for thickness, material or height.
- The price list named in the contract: when the contract refers to a specific price list, in the version and at the discount that were set.
- A price analysis: material, labour and equipment, with overheads and profit on top, according to the contract.
An example of a price analysis for one m², in shekels and as an illustration: material 60, labour 35, equipment 5, together a direct cost of 100. Overheads of 12% bring it to 112, and a profit of 10% brings it to 123.2 per m². On 250 m² that is 30,800 excluding VAT. A supervisor who receives an analysis like this can check every line, and that makes all the difference. The chain of overheads and profit is on the page site overheads.
A contract tied to a price list in a set version: do you add contractor's profit?
This question comes up a lot in Israeli contracts that price work from a commercial price list of construction unit rates, in a version and at a discount that the contract sets. The answer depends on the wording of the contract. Three questions decide it: whether the price-list rates already include the overheads and profit of the contractor doing the work; whether the work was done by a subcontractor and the contract allows a main-contractor addition; and which version of the price list and which discount were set. The gap between a price list and the market price is on the page construction price list vs market price.
| What the contract says | Profit added? |
|---|---|
| By the price list in the set version, at a fixed discount, with no additions | Usually not; the price already includes it |
| The price list distinguishes between a main contractor and a subcontractor, and the contract allows an addition | Possibly, at the set percentage |
| An item that is not in the price list, priced by analysis | Overheads and profit inside the analysis, according to the contract |
| A newer price-list version than the one in the contract | Only if the contract allows it; otherwise the version in the contract |
From the field: a variation sent with no advance notice and no measurement is a weak variation, even when it is justified. A variation with a date, a photo, a measurement sheet and a price analysis gets checked seriously, and is usually paid as well.
Frequently asked questions
What do you do when the supervisor does not approve?
Submit a written reservation, keep the variation in the account as a variation in progress, and keep documenting. In a contractual dispute it is worth consulting a lawyer. How this looks in the account is on the page interim payment application.
When do you need to give notice of a variation?
By the deadline in the contract, and as early as possible. Notice before the work is done lets the client decide, and it is also what strengthens the claim.
Do you submit a variation for small work too?
Yes. Small jobs add up to large amounts. If the contract has daywork rates, they are the simple way to price them.
Who can help with submitting variation claims?
A quantity surveyor for construction projects who prepares the measurement and the price analysis. The work I do for contractors is described on the page quantity surveyor for contractors.
Have a project? Tell me briefly what the project is and what already exists. When the project is a good fit, I usually reply with focused questions and a written quote.
Contact me for a quote* Created with AI for marketing, for illustration only. Not reviewed by Yaakov Avital and not professional advice. Every project must be checked on its own by a professional quantity surveyor and an engineer.