Create a variation

Raise a change order against an existing Main contract — a new Variation contract that adds to (or reduces) the parent's value and is claimable in its own right.

When to use this

When the customer agrees to a change of scope, value or cost against an existing approved contract. Variations are how Project Financials models change orders — they're separate Contract records linked back to the parent, not edits to the original.

Prerequisites

• An Approved Main contract on the project — you cannot raise a variation against a Draft contract
• Internal sign-off that the variation will go ahead (Project Financials does not gate the variation against client-side approval — that's a procedural step you handle outside the system)
• Permission to create and approve variations

Walkthrough

1. Open the parent Main contract.
2. Click Add Variation. A new Variation contract form opens, pre-linked to the parent.
3. Enter the variation amount, description, and any SoV / cost-line detail relevant to the change.
4. Save. The variation is created in Draft status, separate from the parent.
5. Submit the variation through its own approval workflow.
6. On approval, the parent contract's totals (Contract Amount, margin, projected sale) update automatically to include the variation. The variation is now claimable.

What success looks like

• A new Variation-type Contract record on the project, linked back to the parent Main contract.
• The parent contract's Variations sublist shows the new variation.
• The parent's Contract Amount has increased (or decreased, for a negative variation) by the variation amount.
• Subsequent claims on the project can include claim lines drawn from the variation.

Gotchas

• Variations are separate Contract records, not edits to the parent. If you're searching for a single contract value that matches the original sale, you won't find the variations rolled in — look at the parent's calculated totals or sum the variations sublist.
• Rejected variations stay on the parent with status Rejected. They aren't deleted automatically — leave them in place for audit history, or have an Administrator remove them if a clean slate is needed.
• Negative-value variations are supported but reduce the parent contract value. Confirm with the customer before saving.
• You cannot raise a variation against a Draft contract. The parent must be Approved first. If the change is happening before initial approval, edit the Draft contract directly.
• The variation has its own approval workflow. It's distinct from the parent's — approving the parent doesn't approve open variations.
• There's no built-in cap on cumulative variations against a contract. If your business needs a ceiling (e.g. "variations cannot exceed 15% of the original contract"), enforce it procedurally — the system won't block it.

Related

• Set up billing schedules
• Issue a progress claim