DEFINITION
A variation letter is a formal document used to notify parties of changes to a contract’s terms or scope. It serves to propose, confirm, or authorize modifications due to project changes, unforeseen issues, or client requests. This letter of variation ensures amendments are formally recorded, protecting all parties and reducing disputes.
Variation Letter Meaning
Variation letter refers to a document that formally notifies parties about the changes to an existing contract. It provides a written record of agreed modifications, ensuring clarity between parties. A letter of variation typically includes specifics on what is being altered, maintaining a clear contract history.
Why Letter of Variation Matters
Without a letter of variation, contract changes can lead to misunderstandings, disputes, or even legal issues. By documenting agreed modifications, a variation letter ensures transparency and accountability, protecting all parties involved. It also helps maintain project timelines and budgets by keeping contractual terms up to date.
Need a template? Check out Mastt’s Contract Variation Letter Template.
