Video 22 of 26 · Move the Money

Variations, End to End

Raise, price and approve a head contract variation, match the subbie's cost, then claim it from the client

← Retentions and Security Provisional Sums: Allowances, Drawdowns and Over-runs →

Watch the Variations, End to End video — Watch the Variations, End to End video on YouTube

Watch the video walkthroughhttps://youtu.be/wzn-abVBDhc

In this walkthrough, you'll take a variation from client request to progress claim in the Deep Space web app. We'll raise and price it, get it approved internally, send it to the client, match the subcontract cost, and claim it. Then we'll cover the questions we get most.

The full series: 26 videos in Builder's Wheel order (Win, Set Up, Build, Move the Money, Govern)

Build an Estimate and Proposal Win
Multi-Trade Tender Win
Set Up Your Workspace Set Up
Add Users and Give Them Access Set Up
Company Settings: Get Your Documents Ready Set Up
Connect Xero and Map Your Cost Codes Set Up
Folder Templates and Project Documents Set Up
Document Templates vs Contract Templates Set Up
Email Templates and Sending Documents Set Up
Head Contract Setup Set Up
Build Your Programme Set Up
Subcontracts: Award to Executed Set Up
DS Site: Invites, Inductions and Site Sign-on Build
Drawings to Site and Subbies Build
Run Your Programme on Site Build
RFIs, Notices and the Project Inbox Build
Inbox to Xero: How the Money Flows Move the Money
Purchase Orders Move the Money
Process Supplier Invoices Move the Money
Subbie Claims: Inbox to Payment Schedule Move the Money
Retentions and Security Move the Money
Variations, End to End Move the Money
Provisional Sums: Allowances, Drawdowns and Over-runs Move the Money
Progress Claims to Your Client Move the Money
Budget and Forecasting Govern
Delegation of Authority Govern

Raise a variation

Client variations live under Commercial, Head Contract, Variations. The tabs show which ones still have no cost side, an — Client variations live under Commercial, Head Contract, Variations. The tabs show which ones still have no cost side, and which have cost approved but the sell still pending.

Click New Variation. Pick the type, such as Client Request, Design Change, or Cost plus and dayworks, then the head cont — Click New Variation. Pick the type, such as Client Request, Design Change, or Cost plus and dayworks, then the head contract. Add the location, a description, any schedule impact in days, and the reason. These all print on the variation document.

Under Scope and Pricing, click Add Item. Enter it manually, pull it from the schedule of values, or copy it from a subco — Under Scope and Pricing, click Add Item. Enter it manually, pull it from the schedule of values, or copy it from a subcontract variation. Enter the quantity and cost rate, then a margin or a markup. Enter one and the other fills in.

Check the cost, margin and sell amounts, then pick a cost code. Codes linked to this head contract show first. Tick Show — Check the cost, margin and sell amounts, then pick a cost code. Codes linked to this head contract show first. Tick Show all cost codes to see the rest.

Add as many lines as you need. The total cost, sell, blended margin and variation value update as you go. Then click Cre — Add as many lines as you need. The total cost, sell, blended margin and variation value update as you go. Then click Create Variation.

The variation opens as a draft, with tabs for details, pricing, documents, attachments, approvals and correspondence.

Internal approval

The financial impact shows the original contract sum, variations already approved, this one, and the revised contract su — The financial impact shows the original contract sum, variations already approved, this one, and the revised contract sum. Generate and Send stays locked until it's approved internally, so click Submit Variation.

It goes for internal approval first. Once approved it moves to Submitted, and its lines become claimable as pending item — It goes for internal approval first. Once approved it moves to Submitted, and its lines become claimable as pending items. The contract value only changes when the client approves.

The Approvals tab shows the route for this project. Here that's Pricing Review, then PM Sign-off. Director Review is ski — The Approvals tab shows the route for this project. Here that's Pricing Review, then PM Sign-off. Director Review is skipped below the value threshold set in your Delegation of Authority.

Each approver approves from View Full Approval Route. Once every step is signed off, it shows Submitted. Need to change — Each approver approves from View Full Approval Route. Once every step is signed off, it shows Submitted. Need to change something? Revert Internal Approval.

Send it and get it approved

On the Documents tab, Generate Document builds the variation order from your template. Generate and Send emails it to th — On the Documents tab, Generate Document builds the variation order from your template. Generate and Send emails it to the client.

Choose how the lines show. Sell only hides your margin. You can also show cost and margin at totals, or the full breakdo — Choose how the lines show. Sell only hides your margin. You can also show cost and margin at totals, or the full breakdown. The preview shows the scope, the GST, and the effect on the contract sum.

Generate and Send walks you through three steps. Pick the template, pick the email template, then add the client's email — Generate and Send walks you through three steps. Pick the template, pick the email template, then add the client's email and click Send.

When the client replies, come back to Approvals. Click Approve Variation and it's applied to the head contract. If they — When the client replies, come back to Approvals. Click Approve Variation and it's applied to the head contract. If they push back, click Dispute Variation.

Show summary on the register gives you drafts, approved cost and sell, pending, disputed, and total schedule impact for — Show summary on the register gives you drafts, approved cost and sell, pending, disputed, and total schedule impact for the project.

Match the cost side

Now match the cost. The Subcontract counterpart column shows which subbie variations back each client variation. This on — Now match the cost. The Subcontract counterpart column shows which subbie variations back each client variation. This one has no cost side linked yet.

Go to Commercial, Subcontractors, Variations, and click New Variation. Pick the subcontract, who initiated it, the type, — Go to Commercial, Subcontractors, Variations, and click New Variation. Pick the subcontract, who initiated it, the type, and add the items.

Each item adds a new line or changes an existing one. Cost codes already on that subcontract show first.

Submit it for internal approval, and approvers sign off from the approval route. If the project has no Delegation of Aut — Submit it for internal approval, and approvers sign off from the approval route. If the project has no Delegation of Authority of its own, the workspace default is used.

Then Update Status records the subbie outcome. Approved adds it to the subcontract value. Rejected can be reopened later — Then Update Status records the subbie outcome. Approved adds it to the subcontract value. Rejected can be reopened later.

Click Link to connect it to the client variation. Deep Space suggests matches, so pick the right one and click Link.

Now both sides are matched. The subbie cost of two thousand nine hundred is backed by a client sell of three thousand th — Now both sides are matched. The subbie cost of two thousand nine hundred is backed by a client sell of three thousand three hundred and fifty, so your margin is protected.

Claim it and track the budget

When you claim from the client, New Claim warns you about approved subbie variations this claim isn't recovering. It's i — When you claim from the client, New Claim warns you about approved subbie variations this claim isn't recovering. It's information only, so it won't block the claim.

From that list you can raise a client variation or link one straight away. Keep Include Variations switched on.

Approved variations, and submitted ones marked pending, sit in their own group. Enter the amount for this period, and it — Approved variations, and submitted ones marked pending, sit in their own group. Enter the amount for this period, and it adds to the gross claim, with retention calculated on the total.

In the Budget Register, a banner flags draft variations not yet in the budget. Approved and pending variation cost have — In the Budget Register, a banner flags draft variations not yet in the budget. Approved and pending variation cost have their own columns.

Once approved, the variation cost moves into the revised budget for its cost code, so your forecast stays right.

Common questions

My variation approval went to an admin, not the commercial lead.

No one holds that role on the project, so it went to the highest authority. Assign the role in Project Settings, Team.

My variation approval went to an admin, not the commercial lead. — No one holds that role on the project, so it went to the highest authority. Assign the role in Project Settings, Team.

Should I enter margin or markup?

Either. Markup is on cost, margin is on sell. Fifteen percent markup is a thirteen percent margin, and the margin dollars are the same.

Should I enter margin or markup? — Either. Markup is on cost, margin is on sell. Fifteen percent markup is a thirteen percent margin, and the margin dollars are the same.

My variation isn't in the progress claim.

It must be Submitted or Approved, not draft or still in internal approval. Then check Include Variations is on.

My variation isn't in the progress claim. — It must be Submitted or Approved, not draft or still in internal approval. Then check Include Variations is on.

I approved it by mistake.

Use Revert Internal Approval, or Revert to Draft to edit it. On subcontract variations, look for Revert Approval on the panel.

I approved it by mistake. — Use Revert Internal Approval, or Revert to Draft to edit it. On subcontract variations, look for Revert Approval on the panel.

How do I do a cost plus or dayworks variation?

Pick Cost plus or dayworks as the variation type, then price the lines at cost with your markup.

How do I do a cost plus or dayworks variation? — Pick Cost plus or dayworks as the variation type, then price the lines at cost with your markup.

Can I do a negative variation or back charge a subbie?

Yes. Enter a negative amount on the line. The impact can be negative.

Can I do a negative variation or back charge a subbie? — Yes. Enter a negative amount on the line. The impact can be negative.

The cost code I want isn't in the list.

Tick Show all cost codes. Only codes linked to that contract show first.

The cost code I want isn't in the list. — Tick Show all cost codes. Only codes linked to that contract show first.

Quick reference

New Variation: type, contract, scope and pricing
Submit for internal approval
Generate and Send, then Approve or Dispute
Raise and link the subbie variation
Claim it, and check the budget

Need a hand? Email help@deepspacegroup.ai

← Retentions and Security Provisional Sums: Allowances, Drawdowns and Over-runs →