Standalone and Subcontract contracts can be varied in price, duration, terms and conditions but Head Agreement contracts can only be varied in terms and conditions. A Head Agreement contract doesn't have any duration or value stored against it and that's why both extensions and variations of price and duration are irrelevant to Head Agreement contracts.
Variations are initially created with a 'Draft' status. While in draft, variations that affected the value of the contract will be counted in the proposed value for the contract.
Variations go through an approval process using the CORE Approvals module. Once approved, the status of the variation changes to 'Approved' and the contract gets updated depending on the type of variation taken place i.e. price, duration or terms.
You can view all variations against an Active contract by heading to the 'Details' > 'Variations' tabs. You can also add new variations to the contract in this section.
Add New Variation
After you click on 'Add new' (as above), you will be prompted to enter information about your variation.
Use the tabs along the top of the page - 'Details', 'Related Variations', 'Documents' - to explore the other variations related to the contract, and attach any relevant documents to the variation currently being raised.
Contracts can be varied based on price, duration, terms and conditions or any combination of these. Ticking the relevant combination of these under 'Variation type' will reveal additional information required depending on what you are varying.
Note: Head Agreement contracts can only be varied on terms and conditions.
Select a template at the bottom of the page and hit 'Generate' to generate the document and submit your variation for approval.
Note: Admins can also manage these documents generation templates using Mail Merge. See this article for more information.
Variation to contract value
When a variation to the contract value is executed, the 'Current Value' of the contract will be updated to incorporate the value of the variation.
If there is a schedule of rates established for the contract, then the schedule of rates will add a line number to account for the value of the variation.
Variation to contract duration
When there is a variation to the contract duration, extensions will be created that match the duration stated on the variation. The result is that the extensions register will show all impacts to the duration of the contract whether caused by pre-agreed extensions, or timeframes were extended due to variation.
When adding this, you will need to select whether the variation to duration will be automatically applied on variation approval, or if this will have to be manually exercised.
Add multiple variations to duration (extensions) by adding the duration/new expiry date, hitting 'Add extension option' and repeating this process.
Variation to contract terms and conditions
When varying the T&Cs, no changes are made to the contract record itself. Rather, this is captured against the variation record.
Add multiple variations to the T&Cs by clicking on 'Add another variation'.