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General

Variation Order Management

Systematic process for managing service changes and additional cost claims during contract execution.

What is Variation Order Management?

Variation order management (German: Nachtragsmanagement) is the systematic process for managing service changes and resulting compensation claims during contract execution, particularly significant in construction.

Legal Framework

  • § 650b-c BGB: Client's right to order changes and compensation adjustment
  • § 2(3-6) VOB/B: Quantity changes, changed services, additional services
  • § 132 GWB: Contract modifications during execution

Types of Variations

TypeLegal Basis (VOB)
Quantity change (>10%)§ 2(3)
Changed service§ 2(5)
Additional service§ 2(6)
Omitted service§ 2(4)
Obstruction claim§ 6(6)

Process

  1. Immediate written notification
  2. Documentation (daily reports, photos)
  3. Variation calculation based on original pricing
  4. Negotiation and agreement
  5. Written commissioning

Procurement Law Limits (§ 132 GWB)

Permitted without new procurement: changes up to 10-15% of contract value, unforeseeable circumstances (up to +50%), non-substantial changes. New procurement required for substantial character-changing modifications.

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