Variation order calculator
A variation order is priced from its direct cost, plus overhead and profit, plus any bond or insurance charge. VAT at 5% is shown separately and is not part of the variation value. Time impact is recorded in days, and the variation is compared with the original contract value only when you enter it.
On this page
How the variation is priced
The calculator starts from the direct cost of the changed work, adds the overhead and profit percentage, then applies the bond and insurance percentage to that subtotal. The result is the variation value before VAT. VAT at 5% is added below it so you can see both figures. A variation should be agreed in writing before the work is done, and your contract decides whether overhead and profit are applied as a single percentage as they are here.
| Step | Working | Amount (AED) |
|---|---|---|
| Direct cost | Entered | 250,000.00 |
| Overhead and profit | 250,000 × 15% | 37,500.00 |
| Subtotal | 250,000 + 37,500 | 287,500.00 |
| Bond and insurance | 287,500 × 1% | 2,875.00 |
| Variation value before VAT | 287,500 + 2,875 | 290,375.00 |
| VAT 5% | 290,375 × 5% | 14,518.75 |
| Variation including VAT | 290,375 + 14,518.75 | 304,893.75 |
Time impact and the share of the original contract
The time impact is a number of days kept beside the price. It adds no money in this calculator. If the variation also delays completion, use the extension of time calculator to work out the claim arithmetic.
The share of the original contract is the variation value before VAT divided by the original contract value. If you leave the original contract value blank the calculator shows no percentage. It never assumes a figure. On a AED 4,800,000 contract the example variation is 290,375 ÷ 4,800,000 = 6.05%.
VAT and what the sources say
The FTA's Real Estate VAT guide says construction services supplied in the UAE are subject to VAT at 5%, whatever the type of building. The Decree-Law imposes the 5% rate on supplies. The calculator therefore adds 5% to the variation value. When the VAT falls due depends on the date-of-supply rules, which a variation priced here does not change; read the VAT guide for contractors.
Where it fits in SupaJack Construct
In SupaJack Construct a variation updates the project's contract value and raises the costing sheet version, so the budget history stays in one place. Payment terms and certificates sit in interim payments and the contract and costing sheet in projects and tenders. See the tendering and costing guide and the costing sheet entry. Related calculators: payment certificate calculator, retention calculator, advance payment recovery calculator, VAT calculator, extension of time calculator, delay damages calculator, bank guarantee cost calculator, price escalation calculator, BOQ line total calculator, subcontractor payable calculator.
Worked example
A fit-out variation has AED 250,000 of direct cost. Overhead and profit at 15% is AED 37,500, giving a subtotal of AED 287,500. Bond and insurance at 1% adds AED 2,875, so the variation value before VAT is AED 290,375. VAT at 5% is AED 14,518.75, and the total is AED 304,893.75. On a AED 4,800,000 contract the variation is 6.05% of the original value.
Questions people ask
What is a variation order?
A written instruction or agreement that changes the scope of a construction contract, and with it the contract value and often the time for completion.
Is VAT included in the variation value?
No. The calculator shows the variation value before VAT and adds 5% VAT as a separate line, so you can compare it with the contract value.
Why is bond and insurance applied to the subtotal?
This calculator applies it to the direct cost plus overhead and profit. Your contract may apply it differently, so check the clause.
Does the time impact change the price?
No. Days are kept beside the price. Money for delay is a separate claim, which the extension of time calculator works out.
What happens if I leave the original contract value blank?
The calculator shows no percentage. It does not assume a contract value or fall back to zero.
Can overhead and profit be different for additions and omissions?
Some contracts price them differently. Run the calculator once for each and compare, or follow the rates your contract states.
Is the variation percentage before or after VAT?
Before VAT. It is the variation value before VAT divided by the original contract value before VAT.
Should a variation be agreed before the work starts?
Yes where the contract allows. An agreed written variation can be valued and certified. Unagreed work is a common source of disputes.
Does the calculator cover omissions?
It prices an addition. For an omission enter the direct cost of the omitted work and treat the result as a deduction under your contract.
How does SupaJack Construct record a variation?
It updates the project's contract value and raises the costing sheet version instead of creating a second sheet.