What is variation clause in a contract?

A variation clause in a contract allows for modifications or changes to the terms of the agreement after it has been executed. This clause typically outlines the process for proposing, approving, and implementing changes, ensuring that all parties agree to the adjustments. It helps manage unforeseen circumstances or shifts in project scope, providing flexibility while maintaining legal clarity. Properly drafted, it can prevent disputes by clearly defining the conditions under which variations can occur.