Variation orders add revenue — but they also add materials, labour, subcontractor costs and project duration. Here's why VO profitability deserves its own attention.
Variation orders feel like extra revenue — and they are. But they also bring costs that can quietly erode the value of the job.
On the revenue side:
On the cost side:
For each variation: did the price charged cover the true cost of delivering it?
Draft template — to be reviewed and completed before publication.
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Wafra Insights provides general information for educational purposes and should not be treated as accounting, tax, legal or other professional advice specific to your circumstances. Requirements may differ depending on your business and situation. Seek appropriate professional advice where required.
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