What is a Variation Order? What Every Homeowner Should Know

Changes can happen.

Your renovation plans can be as concrete as they come, but changes are inevitable along the way – be it to account for a structural challenge your interior designer found on site, a change of heart about the design, and more.

When that happens, these changes are typically documented in a variation order, so everyone is clear on what’s being changed, how much it costs, and how it affects the original renovation scope.

So what, exactly, is a variation order?

A variation order, or VO, is basically a written record of any changes made to your renovation after the original quote or scope of work has been agreed on.

It could be for extra work you’ve requested, something you’ve decided to remove, or changes to materials, measurements, or design details. Any difference in cost should be stated clearly too, so you know exactly what’s changing and what you’re paying for.

What should homeowners check before approving a variation order?

Before approving a variation order, compare it against your original quotation and check exactly what has been added or changed. You should also look at the cost difference, too, and ask if the change will affect your renovation timeline.

If the VO includes new materials, dimensions, or quantities, make sure these are stated clearly rather than described vaguely. And if anything doesn’t match what you discussed, flag it before signing off – because it’ll be much harder to change things once renovations start.

Does a variation order mean your renovation cost will increase?

Not necessarily. A variation order can increase or reduce your final renovation cost, depending on what has changed.

Adding extra work or upgrading materials will usually cost more, while removing items from the original scope could lower the amount you pay.