Variation order in construction: simple JCT procedure, pricing and templates that get paid

Category: Business & Operations Niche: Contracts admin, JCT variations

QS and foreman agreeing a JCT variation in a site office

Jump to: Who this is for • What is a variation order • Quick UK rules • Step-by-step JCT procedure • How to price it • Templates you can copy • Process diagram • FAQs

Who this is for

Subcontractors, small main contractors and site managers working under JCT contracts in the UK.
You want a clear, plain-English process to get changes agreed, priced and paid without a fight.

What is a variation order

In construction, a variation order also called a change order is a written instruction that changes the agreed scope, materials, or sequence from the contract documents. Under JCT, only written or promptly confirmed instructions become payable changes.

Helpful background:

Designing Buildings Wiki. Variations in construction contracts: https://www.designingbuildings.co.uk/wiki/Variations_in_construction_contracts
RICS Valuing Change guidance note PDF: https://www.rics.org/content/dam/ricsglobal/documents/standards/valuing_change_1st_edition_rics.pdf

Quick UK rules

Get it in writing. A verbal instruction has no immediate effect until confirmed. Source: CMS Law-Now on JCT writing requirements: https://cms-lawnow.com/en/ealerts/2024/07/writing-requirements-for-variation-claims-under-the-jct
Use the contract route offered. JCT uses either an upfront quotation route or a valuation by the QS. See Ramskill Martin explainer: https://ramskillmartin.co.uk/technical/back-to-basics-31-schedule-two-variations-under-jct-part-1
Claim time and loss and expense on time. Serve notices or you may lose entitlement. See Weightmans on conditions precedent: https://www.weightmans.com/insights/no-notice-no-claim-the-conditions-precedent-in-jct-forms-of-contract/

Step-by-step JCT procedure

Issue or request a written instruction

Architect or Contract Administrator issues a written instruction describing the change. If you receive a verbal direction, confirm by CVI within 7 days.
Subcontractors should ask for a written instruction from the Main Contractor if direction came from site only.

Choose pricing route: quotation or valuation

Quotation route. For SBC and DB, the CA or Employer can invite a Schedule 2 quotation Contractors Estimate. Typical timing 14 to 21 days unless amended. If accepted, it locks price and any time and loss and expense.
Valuation route. If no agreement up front, the QS values using contract rates or fair rates and prices, including prelims, then certifies in the next payment.

Notify time impact early

Send an early notice if the change will delay you. Keep programme evidence and resource logs so the CA can assess an Extension of Time.

Loss and expense notices

If regular progress is affected, serve the required notices and updates to recover site overheads, labour inefficiency, supervision, plant, accommodation and so on.

Keep records and photographs

Daily labour and plant, delivery tickets, site constraints. These support valuation, EOT and loss and expense decisions.

Payment and change log

Make sure the variation is referenced on your application for payment and tracked in a change log with dates, status and values.

Good reads to go deeper:

Ramskill Martin on Schedule 2 quotations: https://ramskillmartin.co.uk/technical/back-to-basics-32-schedule-two-variations-under-jct-part-2
Shoosmiths on JCT 2024 time provisions: https://www.shoosmiths.com/insights/articles/navigating-the-new-jct-design-and-build-2024

How to price it

Order to try:

Existing contract rates. Apply the same build-ups as the BOQ or pricing document.
Fair rates and prices. When no direct rate exists, build it up from labour, plant and materials with reasonable prelims and allowance for risk.
Dayworks. Only where agreed or instructed. Attach signed daywork sheets and photos.

UK references:

RICS Valuing Change: https://www.rics.org/content/dam/ricsglobal/documents/standards/valuing_change_1st_edition_rics.pdf
Designing Buildings Wiki on valuation: see section How are variations valued on the page linked above.

Templates you can copy

Use these plain-text templates in your emails or letters.

Template 1. Confirm a verbal instruction CVI

Subject: Confirmation of verbal instruction variation reference [VO-###]

On [date] at [time] we received a verbal instruction from [name, role] to [describe change]. We will proceed on the basis of this instruction. Please confirm in writing under the contract so the change can be valued and certified.

Impact we foresee: [cost summary], [time impact if any]. We will submit records and, if requested, a quotation under Schedule 2.

Regards, [name], [company]

Template 2. Submit a variation quotation Schedule 2

Subject: Variation quotation reference [VO-###]

Following the instruction dated [date], please find our quotation under Schedule 2 for the proposed change.

Scope and assumptions: [bullet points]
Price breakdown: labour [£], plant [£], materials [£], prelims [£]
Time impact: [xx] working days on the critical path
Loss and expense: [if applicable]
Valid until: [date]

Please confirm acceptance. If not accepted, we will proceed as instructed and request valuation under the contract rules.

Regards, [name], [company]

Template 3. Loss and expense notice

Subject: Loss and expense notice for variation reference [VO-###]

We notify, under the contract, that the above change is materially affecting the regular progress of the works. We will submit particulars and monthly updates including records of labour, plant, accommodation, supervision, and impacted activities.

Regards, [name], [company]

Process diagram

FAQs

Useful links

Designing Buildings Wiki. Variations: https://www.designingbuildings.co.uk/wiki/Variations_in_construction_contracts
RICS Valuing Change guidance: https://www.rics.org/content/dam/ricsglobal/documents/standards/valuing_change_1st_edition_rics.pdf
Shoosmiths on JCT 2024 time decisions: https://www.shoosmiths.com/insights/articles/navigating-the-new-jct-design-and-build-2024