Can You Claim for Variations Under the Security of Payment Act?

Can You Claim Variations Under the SOP Act? Yes — With Conditions

One of the most common questions from subcontractors is whether variation work can be included in a Security of Payment Act claim. The short answer is yes — but how you document and present variations will significantly affect your prospects of recovering them.

What Is a Variation?

A variation (or change order) is any work that falls outside the original scope of the construction contract. Common examples include additional excavation due to unexpected ground conditions, changes to the floor plan requested by the developer, or additional fire protection requirements imposed by a building certifier.

When Variations Are Claimable

Variations are claimable under the SOP Act when:

• The variation was directed by the head contractor or principal
• The variation was expressly or impliedly authorised by the contract
• You have documentation supporting the instruction to carry out the variation

Verbal instructions can be problematic — always follow up variation instructions in writing (an email is sufficient).

How to Document Variations for SOP Act Claims

• Variation Register: Keep a running log of all variations, including date instructed, who instructed it, description of work, and estimated cost.
• Written Confirmation: After receiving a verbal instruction, send a same-day email: “As instructed by [name] on [date], we will carry out [description] at an estimated cost of [amount].”
• As-Built Records: Photos, timesheets and material receipts are essential for disputed variations.

Disputed Variations

If the head contractor disputes whether a variation was authorised or its value, you can still include it in your payment claim. The adjudicator will assess the evidence and make a determination. Strong documentation — especially written instructions — significantly improves the outcome.

Claiming Variations With PayClaim

When you use PayClaim, you can describe your variation work in the claim details. Our AI will include it in the payment claim document with the appropriate line items. For disputed variations, our adjudication application template includes specific sections for variation evidence.