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A Tradie's Guide to Calculating and Managing Project Variations

9 September 2026 · 6 min read · By Heaney Accounting

What counts as a variation?

A variation is any change to the original scope of work after the contract has been signed. Whether it is a client asking for extra power points, or hitting rock during an excavation, these changes cost you time and money.

  1. Document the request in writing immediately.
  2. Calculate the extra labour and material costs.
  3. Add your standard profit margin to the variation cost.
  4. Get the client to sign off on the variation price before doing the work.
  5. Update your invoice to show the original contract plus the approved variation.

Pro Tip: Never start work on a variation until you have a signature. A verbal 'go ahead' often leads to disputes when the final invoice arrives.

Avoid 'scope creep'

  • Doing 'small favours' without charging.
  • Not accounting for the extra time spent travelling back and forth.
  • Forgetting to include the cost of rubbish removal for extra waste.
  • Not adjusting the final completion date for the extra work.

By treating every change as a formal variation, you protect your cash flow and ensure the business is paid fairly for every minute spent on site.

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