The Complete Guide to Variation Management for Tradies

Variations are the lifeblood of most trade businesses. They're also the biggest source of disputes, unpaid invoices, and stress.

This guide covers everything you need to know about managing variations properly — from the legal stuff to the practical systems that actually work on the job.

What Is a Variation?

A variation (or "VO") is any change to the original scope of work. This includes:

• Additions: Extra work the client requests
• Subtractions: Work removed from the original scope
• Modifications: Changes to how something is done
• Unforeseen conditions: Things you couldn't have known until you started

Under Australian Consumer Law and standard building contracts, variations need to be documented and agreed before the work is done.

Why Variations Cause Problems

The typical scenario goes like this:

1. Client asks for something extra on site
2. You agree and do the work
3. Later, you add it to the invoice
4. Client says "I never agreed to that" or "I didn't know it would cost that much"
5. You either eat the cost or have an uncomfortable dispute

The problem isn't the variation itself. It's the lack of documentation at the time of agreement.

The Elements of a Good Variation Order

A proper variation document should include:

1. Description of Work

• Clear, specific description of what's being done
• Reference to original scope (what's changing)
• Any materials or equipment involved

2. Pricing

• Labour costs
• Materials with quantities
• Any subcontractor costs
• Total price (GST inclusive)

3. Timeline Impact

• How this affects the completion date
• Any delays caused by the variation

4. Signatures

• Client signature (or digital equivalent)
• Your signature
• Date and time

5. Photos/Evidence

• Before photos (if relevant)
• Photos of the area/issue being addressed
• Client on video explaining what they want (gold standard)

The Paperwork Problem

Here's the reality: no one wants to do paperwork on a building site.

You're covered in dust, you've got tools in your hands, and the client wants an answer now. Pulling out forms and getting signatures feels clunky and slow.

That's why most tradies skip it. Not because they don't know better — because the friction is too high.

A Modern Approach: Video-First Documentation

The tradies who've solved this problem use a video-first approach:

1. Record the client explaining what they want
2. Confirm the price on camera
3. Generate a document automatically from the recording
4. Get a quick signature on your phone

This works because:

• Your phone is always with you
• Recording takes seconds
• The client's own words are unbeatable evidence
• Digital signatures are legally valid in Australia

Dealing with "Just Do It, We'll Sort It Later"

Every tradie hears this. Here's how to handle it professionally:

Client: "Just do it and we'll work out the cost later."

You: "No worries — I just need to get this documented quick for both our protection. Takes 30 seconds, then we're good."

If they push back further, that's a red flag. Legitimate clients understand that professionals document their work.

What the Law Says

Under Australian Consumer Law and most standard building contracts:

• Written quotes/orders should be provided before work begins
• Changes to contract value need to be agreed in writing
• You can't enforce payment for work that wasn't properly documented

This isn't about being difficult — it's about protecting both parties.

Building a Variation System

Here's a practical system you can implement this week:

Step 1: Create a Template

Make a simple one-page variation form with:

• Job details (address, client name)
• Description of extra work
• Price breakdown
• Signature lines

Step 2: Keep It Accessible

• Save it as a PDF on your phone
• Have blank copies in your work vehicle
• Use a notes app for quick capture

Step 3: Set a Policy

• All extras over $X require signed variation
• Variation must be signed before work starts
• No exceptions, no matter how small it seems

Step 4: Communicate with Clients

• Explain your process at the start of every job
• Frame it as "protection for both of us"
• Most clients appreciate the professionalism

Common Scenarios and How to Handle Them

Scenario 1: Discovery of Hidden Issue

You're mid-job and find something unexpected (e.g., rotten framing behind a wall).

Solution:

1. Stop work on that section
2. Document what you found (photos + video)
3. Explain options and costs to client
4. Get signed variation before proceeding

Scenario 2: Client Adds Scope on the Fly

"While you're up there, can you fix this too?"

Solution:

1. "Sure, let me just document this quick"
2. Record them explaining what they want
3. Give them a price on the spot
4. Get verbal confirmation on video, formal signature later

Scenario 3: Price Disputes After the Fact

Client claims they didn't agree to the variation price.

Solution: If you have documentation:

• Show the signed variation order
• Refer to video/recording of their agreement
• Your documentation is legally binding

If you don't have documentation:

• This is why you need a system
• Learn from it, don't let it happen again

The ROI of Proper Variation Management

Tradies who implement proper systems typically see:

• Revenue increase: $1,000-3,000/month in recovered variations
• Disputes: Near zero
• Admin time: Down 50-70%
• Client relationships: Actually improve (clarity builds trust)

The math is simple: one hour setting up a system saves hundreds of hours of stress and thousands of dollars.

Key Takeaways

1. Document everything — verbal agreements aren't worth the paper they're not written on
2. Capture in the moment — the best time is when the client is asking for the work
3. Use video — the client's own words are unbeatable evidence
4. Get signatures before work starts — not after
5. Keep it simple — a system you'll use beats a perfect system you'll skip

Your time is valuable. Your work is valuable. Make sure you get paid for all of it.