Once a Contract is executed, tracking Variations to that Contract is critical for maintaining compliance, accurate reporting and diligent financial management. As a Project progresses through design and construction phases, most Contracts will be subject to Variations. Mastt automates all key processes and procedures around Variations to Contracts, which can be created using these easy steps!
Note: Before Adding a Variation, make sure you check out how to create a Contract. Variations can only be added to Contracts, so to follow these steps you'll need at least one Contract.
Step 1: To add a Variation in the system, this can be done in a few ways. You can select ‘Add Variation’ from the tool bar;
or, from the 'Overall' page, select a Three Dots Menu ( ) next to the Contract you are applying the Variation and click 'Add Variation'.
Step 2: The Add Variation form will open and present fields for you to enter:
Variation Title: e.g. 'Variation 01 for additional design'
VPR (Variation Price Request #): This is a free text input, in case you need to track it. It is not compulsory to input, don't worry.
VA:(Variation Authorization #): This is a free text input, in case you need to track it. It is not compulsory to input, don't worry.
Status: The following status can be selected for Variations. Check out this article on how the different Variation status update the Overall page.
FORECAST - It's coming, but you haven't received it yet!
PENDING - You've got it, its under review.
IN-PRINCIPLE - Its approved in-principle, but you don't have the final paperwork yet.
APPROVED - It is approved, hooray.
REJECTED - It is rejected. With this status, it won't appear on 'Overall' or 'Cash Flow' at all but will stay in the Variation Register.
WITHDRAWN - It is withdrawn. With this status, it won't appear on 'Overall' or 'Cash Flow' at all but will stay in the Variation Register.
VO: (Variation Order #) This is a free text input, in case you need to track it. It is not compulsory to input, don't worry.
Clause: This is a free text input, in case you need to track it. It is not compulsory to input, don't worry.
EOT (Extension of Time): Once you've selected a contract at Step 3, you'll be able to enter a number of days that the Variation extends the Completion Date. However, you must first have entered a Completion Date when adding the Contract.
Total Amount: This is automatically calculated based on the Variation amount entered, how to do that is coming up!
Project Variation: This is an auto number for the Variation. This is the number Variation it is on the whole Project!
Step 3: If you at Step 1 you selected ‘Add Variation’ from the tool bar, you'll need to select a Contract. Under the column 'Varying Contract', select the Contract that this Variation applies. One benefit of selecting Add Variation from the Three Dots Menu ( ) next to the relevant Contract on 'Overall', is that it pre-populates that Contract for you :)
Step 4: Entering Variation Amounts in Mastt has capability that you might not be used to, so listen carefully.
- If the Contract has a breakdown of Milestones/Items, we can (if you need to) spread the Variation across those Milestones/Items. An example of this, would be a design variation that might require updating 5%, 30% and 50% design milestones for the Consultant. In that case, you'd be entering data into the column 'Variation Amount' against the relevant Contract Milestones/Items, shown in yellow.
- If the Variation is not varying an existing Milestone/Item, it should be entered against 'Other commitments' shown in the blue.
If you need to, feel free to add important documents and make comments at the bottom of the form.
Step 5: Click 'Add Variation' in the bottom right of the form when you're done.
Step 6: To view the Variation you've created, check out the list of all Variation on a project in the Variation Register, by clicking on ‘Variations’ in the top menu.
Step 7: View the Variation on the 'Overall' screen, where you can unravel down to see the Variation you've created. For more information on the different Variation status and how they affect the overall screen, check out this article here.
Step 8: Take a deep dive on the Variation you've created by visiting the Variation's Detail View.
A few rules to be aware of:
- Variations can only be added to Contracts
- if a Contract is PENDING status, a Variation you create can only be PENDING also. It can't be APPROVED until the Contract is also APPROVED
- Variations must be APPROVED before you can Add Claims.
- EOTs: To enter an Extension of Time, you must first have entered a Variation Amount at at Step 4.