A practical law variation agreement, also known as a change order, is a formal agreement between parties to modify the terms of a previously established contract. This type of agreement is commonly used in business and construction contracts, where changes may arise due to unforeseen circumstances.

The purpose of a variation agreement is to ensure that both parties are in agreement with the changes being made. It should outline the reasons for the changes, specify the revised terms, and provide a timeline for implementation. The agreement should also include provisions for managing the costs of the changes and any potential delays.

One key benefit of a variation agreement is that it can help to avoid disputes between parties. By having a formal process in place for making changes to a contract, parties can ensure that any modifications are made in a way that is fair and transparent. This can help to build trust and promote a positive working relationship between parties.

Another benefit of a variation agreement is that it can help to ensure that the final outcome of a project is in line with the parties` original intentions. If changes are made without a formal agreement in place, there is a risk that the project may deviate from its original scope and become unprofitable or impractical.

When drafting a variation agreement, it is important to ensure that it is clear and unambiguous. The language used should be concise and easy to understand, and all key terms should be defined. The agreement should also be reviewed by legal counsel to ensure that it complies with all relevant laws and regulations.

Overall, a practical law variation agreement can be a valuable tool for managing changes in a contract. By providing a clear and transparent process for making modifications, parties can ensure that their business relationships remain positive and productive.