What is a Variation Order (VO)? Project Management in Under 5

A variation order is a formal request for changes to a contract, often needed when a project specification change requires contractor involvement. It details the required changes, additional work, and commercial terms. Variation orders vary by jurisdiction and industry, with standard forms often used. They are similar to change requests but in a contractual format, ensuring changes are legally binding.

What is a variation order primarily used for in a project?

• To request additional funding

• To formally alter the contract

• To extend the project deadline

• To change the project manager

How can the nature of a variation order differ?

• Based on the project's timeline

• Depending on the jurisdiction and industry

• According to the project's budget

• Based on the contractor's preference

What do most contracts include regarding variation orders?

• A clause for immediate termination

• A list of potential contractors

• Provisions for contract variations

• A fixed project completion date

In large organizations, who is likely to have standard contracts with variation order pro formas?

• The human resources department

• The procurement department

• The marketing department

• The legal department

How is a variation order similar to a change request?

• Both are informal suggestions

• Both are in a contractual format

• Both involve changes to the project scope

• Both are used to hire new staff