CONSTRUCTION ERP
The problem
Variations are where contracting margin is made and lost, and they are almost always managed in a spreadsheet. The change is instructed on site, priced weeks later, submitted later still, and approved after the work is already built.
A variation register that is not connected to the budget produces two problems at once: unclaimed revenue, and a budget that no longer describes the project being built.
Core workflow
Change identified to budget updated.
01
Change identified
Site instruction, drawing revision or client request.
02
Potential variation
Logged with date, source and notice served if required.
03
Cost assessment
Priced from the BOQ rates or as a new rate build-up.
04
Quotation
Submitted with cost, revenue and time impact stated.
05
Approval
Variation order issued, or rejection recorded with reason.
06
Budget update
Budget, contract value and programme all revised together.
What it covers
Contracts
Client contracts and subcontractsPayment terms and retentionAdvances, bonds and guaranteesInsurance and liquidated damagesAmendments and final accounts
Variations
Variation register by statusCost, revenue and margin impactProgramme impactRate build-up for new itemsApproval workflow and audit trail
Claims
Notices and correspondence logDelay and disruption recordsExtension of time submissionsProlongation costBack charges and counterclaims
Connects with
Operational outcomes
−19 days
Instruction to priced variation
+AED 2.3M
Variations recovered per project
0
Variations found after final account
100%
Changes with a dated notice record
Ranges observed on Al Jawad engagements. Targets agreed in assessment.