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

in this video I want to answer the

question what is a variation order when

the team has secured approval for a

change in the project specification it

will have a signed change request but

what if the change needs to be carried

out by a contractor of some sort well in

that case there's also a need for a

change to the contract and that change

formally is a variation order

it's a contractual request for change so

a variation order is a side contract it

specifies of the changes that are

required to the contract it sets out

what additional or different work of the

contractor needs to carry out a also

sets out though the consequential

commercial terms that you've agreed for

those changes the precise nature of the

variation order its contractual form and

terminology and conditions will vary

according to the jurisdiction you're

working in and also according to the

industry that you're working in

different industries within the same

jurisdiction can have different

conventions and different practices in

how they manage variations most

contracts will allow for contract

variations and will set out with the

basic form of a contract variation

particularly for contracting in the way

that we would expect it in projects so

therefore any contractor is likely to

come to you with a standard contract

form that allows for contract variations

and has perhaps a pro forma variation

order and likewise if you're working for

a large organization it's likely that

your procurement Department will have

standard contracts with their own

variation order pro formas so a

variation order is very much like a

change request except it's in a

contractual format it varies the

contract it's a contract variation and

it's therefore used when you need a

change to be done by a contractor or a

supplier or some form if you've enjoyed

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