Construction glossary

Variation order

Written by the PleoStack Editorial Team.

Reviewed by Manju Madiwal · Head of Product

Last reviewed 14 July 2026.

Definition

A formal instruction or agreement that changes the contracted scope, quantity, quality, sequence, or conditions of construction work.

What it means on a project

The practical reading, without treating one region's contract language as universal.

A variation may affect cost, time, resources, procurement, or risk and should follow the contract's notice and authorization process.

Terminology varies: change order is common in North America, while variation is common in many other contract forms.

Terminology, contractual effect, and regulatory requirements vary by jurisdiction and contract. Confirm the definition used on your project before relying on this glossary entry.

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