Variation Management
Variations are changes to the scope of work originally specified in the contract and are used in Textura to adjust the total value of your contract for a project. Typically, both your organisation and the Head Contractor can create variations. When a Head Contractor uses the Allow Subcontractors to Request Variations project setting, you can submit variation requests to increase or decrease your contract value.
If you are a Prime Subcontractor with Sub-Tiers working for you on a project and the Sub-Tier holds a contract and enters their billing information on TPM, you can create a Sub-Tier variation to change their contract value. For more information on acting as a Prime Subcontractor, see Sub-Tier Variation Management for Prime Subcontractors.
Your Variations
Variations change the value of your organisation's contract value on TPM. These are displayed on the My Variations tab and are created or approved by the Head Contractor organisation.
Variations you requested but the Head Contractor has not yet approved only appear in the Variation Register.
High-Level Overview
If your Head Contractor does not use the Specified WB setting, you will complete the following workflow:
- The Head Contractor creates a variation to adjust your contract value.
- As a Project Manager, when you next log in and navigate to the Project Home page, you will see an Edit Work Breakdown task.
At this time, the Work Breakdown is out of balance because the new variation needs to be allocated. It will remain out of balance until you allocate the variation.
- Select the Edit Work Breakdown task to go to the Allocate Variation page.
- Either allocate the variation to an existing line item or create a new line item in your WB. Enter the variation amount in the Allocate column and save your changes.
Variation Register
The system makes keeping track of variations simple by providing full visibility into a complete record of all variations submitted against your contract. The Variation Register allows Subcontractors to see any variations that have been submitted or added by the Head Contractor, their assessment status as well as submitted and approved values.
Contract details can be viewed without leaving the Variation Register. Use the contract drop down to select which contract's variations to display. Sub-Tier variations can also be viewed via the register.
The Variation Register provides a comprehensive breakdown of each variation – including assessment details – in an easy-to-read table format.
Requesting Variations
As a Subcontractor, use the request variations feature to notify the Head Contractor of variations to your contract as they arise on site. Variations can be requested at any time of the month, often resulting in approved variations well before your claim is submitted.
To request a variation, use the Request Variations tab of the Variations page.
Once created and approved, your requested variation will display on the Variations page.
High-Level Overview
If your Head Contractor enables variation requests on a project, you will complete the following workflow:
- If you need to adjust the total value of your contract, request a variation from the Variations page.
- The Head Contractor receives the requested variation and either approves or rejects it.
- The Head Contractor can either approve the full amount you requested or a different amount.
- If the Head Contractor rejects the variation request, you will see the variation on your Variation Register with a status of Rejected. At this point, you can submit a new request.
- If you have control of your Work Breakdown and the Head Contractor does not oversee the budget on your behalf, you will need to allocate the variation.
FAQs
Adding a variation with your claim
As part of the progress claim submission process, Subcontractors can submit variations on their contracts and claim against them.
To add a new variation:
- From the Enter Billing Details page, select Add Variations.
- Enter details in the fields provided:
- Number: An identifying number for the variation request
- Title: A heading for the variation request
- Description: Details of the works covered under the variation request
- Attachments: Optional. Add relevant files to the variation assessment, such as work orders or site photos
- Work Started: Optional. Denotes whether the works covered under the variation request have commenced
- Proceed Date: Optional. A reference date for the variation request
- To submit additional variations, select +Add Line.
- Use Select to choose which variations to include in this current claim, then select the Submit Selected button to confirm the details. Each individual variation will appear in the progress claim.
- To claim against your variations, select a Submitted Variation and enter a value in either the % Complete or Work This Period column.
Notes:
- Once submitted, your organisation cannot edit variations and their values. You are still required to claim against submitted variations when entering billing details.
- You can also submit or review your variation register from the My Contract menu at the top of any project page. From this menu, select Request Variation.
What happens to my usage fee when I have a variation?
Usage fees on Textura are based on your contract value. When you are responsible for paying your own fees, you will receive a refund if your contract value decreases by 25% or more. If a variation increases your contract value by 25% or more, you will need to pay the difference between your previous usage fee and new usage fee based off this new value. These two scenarios are called Fee Events.
Last Published Wednesday, July 10, 2024