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The Construction Contracts Co.
Clause library

Variation clause: what it means, a typical example, and what to ask for

A variation clause governs extra or changed work: who can direct it, how it must be directed, and how it is priced and claimed. Most subcontracts only pay for variations directed in writing, often with a time bar on pricing, which is how verbal site directions turn into unpaid work.

A typical builder version

The Subcontractor must not vary the Subcontract Works except as directed in writing by the Contractor's Representative. The Subcontractor is not entitled to payment for any variation unless it has been directed in writing before the work is carried out and the Subcontractor has submitted its price within 3 business days of the direction.

Illustrative wording of the kind found in builder-authored subcontracts, not taken from any one contract.

What it means for you

Extra work only gets paid if it was directed in writing before you did it and you priced it within three business days. Do it on a verbal "just get it done" and you may never be paid for it.

  • Payment only for variations directed in writing before the work is done.
  • A short pricing window (under five business days) with a time bar.
  • The builder's valuation is final if the price isn't agreed.

What market looks like

Written directions, but with the subcontractor able to confirm a verbal direction in writing and be paid for it; a pricing period of 10 business days or more; and valuation at agreed or reasonable rates, including margin, where the price isn't agreed.

What to ask for

"A direction given verbally and confirmed in writing by the Subcontractor within 5 business days is a written direction. If a price is not agreed, the variation is valued at the rates in the Subcontract or, if none apply, at reasonable rates plus a reasonable margin."

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Common questions

Do I get paid for a verbal variation?

Often not, if the subcontract requires written directions before the work is done. Confirm every verbal direction by email the same day, even from the ute.

Can a disputed variation go to adjudication?

Generally yes, under the Security of Payment Acts. In Victoria, the old excluded amounts regime that kept many disputed variations out of adjudication ended on 15 April 2026.

One clause rarely tells the whole story

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Keep reading

General information, not legal advice. Example wording is illustrative. Check any clause you rely on against your full contract and your state's Security of Payment Act. Written by Mat Kennedy, The Construction Contracts Co.