Who Approves Variations on a Construction Project?

A variation should be approved by the person with authority under the construction contract and the owner’s delegation. A site conversation or revised drawing does not automatically establish a valid approval. Read the contract’s notice, direction and valuation clauses before changing the work.

What should happen before an instruction?

Describe the proposed change and why it is needed. Check whether the work is already required by the existing scope; then record the design impact, price basis, programme effect and any approval or tenant consequences. The contract administrator can request a quotation or issue a direction in the manner the contract allows. The client-side manager should present the decision to the owner against the budget and contingency.

Who can commit the client’s money?

The answer should appear in a written delegation: perhaps a project director for minor changes and an executive or board for changes above a threshold. Delegation inside the client organisation and authority to instruct under the building contract are separate questions. Make both visible to the team.

What if urgent work cannot wait?

Use the contract’s urgent instruction and notice process where applicable, then document the reason, scope and cost assessment promptly. Do not rely on a retrospective memory of a phone call. Keep a variation register that distinguishes proposed, instructed, agreed and certified amounts.

A variation log should show the original allowance, revised forecast and remaining contingency after each approved change. That lets the owner see the cumulative effect of several small decisions. It also exposes a proposed change that is still awaiting authority before the builder commits labour or materials.

The practical objective is traceability: what changed, who had authority, what it costs and what it does to completion. Contact Team Vanguard if your decision trail needs structure.

Sources and further reading

• NSW Government — managing variations in construction procurement
• Australian Government Solicitor — construction and fit-out contracts