Variations: You either love them or hate them.

You have filled out the contract.
You have sent out the plans.
You are ready to finish a job and send an invoice.
Then the mighty variation comes along.

You either love them or hate them.

We at Henley Recoveries understand the high risk involved with variations and disputes. We are not only invested in recovering bad debts but also in the prevention of them as well. Did you know variations are one of the most common causes for overdue invoices? Many of the disputes we come across involve a badly communicated or apparent unauthorized variation.

Four reasons why variation forms do not get filled out:

1. It’s done and dusted before the pen hits the paper.

It can sometimes seem that a job is too small to worry about more formalized agreements, however, these small changes are what debtors tend to cling to in a bad situation. A few minutes spent getting the variation confirmed can save the headaches and trauma of explaining why you are owed for your hard work.

2. You don’t know the cost until completed.

It can be scary or seem like bad business to put down an approximate cost for a job you haven’t completed. Some jobs just don’t have that luxury. No one wants to charge too little for a job that wasn’t originally agreed on but we all want that security knowing that we will get paid for the work that we have done.

3. The value of a handshake is taken too highly.

This client seems reasonable right? I’ve done work for this lot for the past year, they will treat me right. We have been mates for years, surely I don’t need to get anything in writing.

Although most of the time, we can judge our clients well, there are some curveballs out there. It is always sad to see debts pop up between trusted businesses with long relationships. Unfortunately disagreements can happen even in the closest of business relationships and although we want to make sure the relationship can be rekindled and debts paid, it can be hard without proof of who said what. Even so, we would hope that the situation can be avoided in the first place!

With regard to new clients, you can email us if you’d like assistance with performing credit checks to see if there is a hidden history that may affect your future business.

4. It’s a time waster and a pain to get done.

The most simple and generally agreed on reason for no variation form. What more can I say? We all have better things to do than more paperwork.

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How can I get around these common issues?

1. If unsure on cost, include a scope of high to low pricing and breakdown once the job is complete. You are most likely already doing this by word of mouth with your client, don’t be afraid to be general on your variation. The more information you have, the safer you will be.

2. Set aside a time prior to starting work to discuss any foreseeable changes with the client. If your client is aware, there is less chance of an emotional response when variations are required.

3. Make sure everything is in writing even if it is a quick text after a conversation confirming details. It is amazing to see how a disagreement can change when you or your client have the original discussion laid out in front of the issue at hand. When you submit a debt with us, this is one of the first steps we take when it is disputed. We like to point out the real facts to eliminate emotion or wrong ideas from the equation.

Digital Variation Form

Lastly, we want to offer a free digital form that simplifies the variation process and saves you valuable time. Your clients can simply fill out the form on their phones for an instant digital signed variation form to mitigate the risk for your business. To register your interest in our form, click here and we will let you know when we can provide you with this simple way to deal with variations.

Benefits of this form include:

1. Send from wherever you are, no need to leave while you’re in the middle of something.

2. No reason for your client to procrastinate and delay paperwork.

3. No unnecessary hold ups for your job.

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Variations are featured in many of our previous blogs because it’s a very important step in avoiding debts in the first place. We see a lot of cases where the client will cling to the fact that the variation is not as expected or asked for, even though they have now received the product. By having a written account of the variation, our experience shows that your chances of having a dispute and needing to take action are considerably lowered.

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Henley Recoveries Group are a no-win, no-fee debt collection agency with an excellent track record of collections. If you have unpaid invoices that need recovering, submit a debt with us for your best chance of getting paid. Our online form is easy to use and can be completed within 5 minutes.

You can also give us a call on 0466 243 114 or email info@henleyrecoveriesgroup.com.au for more information, or to discuss how we can help your business get paid.