Contract Extension and Variation Letter Template: Further Information: Procurement Services SA Effective: 01.07.2021

This document provides a template letter for extending and varying an existing government contract with a non-government party. The letter should reference the original contract details, specify the extension period and any required variations to terms, and be signed by authorized representatives of both parties. Care should be taken to comply with procurement policies regarding extensions, variations, and increases to total contract value. The fully populated letter and any attachments should then be stored with the original agreement.

Uploaded by

Norfadzilah Abd Wahab

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as DOC, PDF, TXT or read online on Scribd

0% found this document useful (0 votes)

163 views

Contract Extension and Variation Letter Template: Further Information: Procurement Services SA Effective: 01.07.2021

Uploaded by

Norfadzilah Abd Wahab

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as DOC, PDF, TXT or read online on Scribd

You are on page 1/ 2

Contract Extension and Variation Letter Template

USER NOTES – delete once letter is populated

Purpose: It is good practice (and often required by the terms of a written contract) for a variation and extension to
be clearly recorded in writing and signed by the parties, to avoid dispute later about the scope and meaning of the
variation and extension.

This template letter has been prepared to assist Government parties to effect and record a simple variation to and
extension of an agreement with a non-government party. Separate templates letters are available where only a
simple variation or a simple extension is required.

When to use this template: This template should only be used to record a variation and extension of an
agreement if there are no extension options in the original agreement or where all extension options have been
exhausted but the term has not yet expired. If there are extension options under the agreement, the Government
party should comply with the terms of the agreement to agree and record the extension, and then use the simple
variation template letter to record the variation.

When to seek advice: This template is suitable for most non-complex and low-medium risk arrangements where
an extension and variation of the contract is required. If the matter is complex, or the result of protracted variation
negotiations, or there is some doubt about the extent or consequences of the variation and/or extension, then
specific legal advice from the Crown Solicitor’s Office should be sought.

Take care: Regard should always be had to the terms of the agreement and to any whole-of-Government or
agency-specific procurement policies governing the variation or extension of agreements, particularly if the
variation or extension is significant or where the original agreement was the result of a competitive market
approach.

Additional approvals: Particular care should be taken when an extension or variation has the effect of increasing
the total expenditure under the agreement. Regard must be had to the requirement for further approval under
Treasurer’s Instruction 8.11A in relation to an increase in the total value of the contract. In some circumstances,
extensions and variations may also amount to a new procurement, in which case Treasurer’s Instruction 18 will
need to be complied with. If there is doubt about the application of any procurement policies, consult with
Procurement Services SA.

Practical tips: This template should be populated with as much specificity as possible, including by referencing
clause and schedule numbers. This extension and variation letter should be executed by both parties prior to the
expiry of the existing term under the agreement. . Written variations and extensions should be stored with or
attached to the original agreement and end dates updated in the agency’s contract register.

Signing the letter: This extension and variation letter should be signed by a government officer who has authority
on behalf of the Government Party to enter into and exercise rights under contracts.

Further information: Procurement Services SA Effective: 01.07.2021

Contact Number: (08) 8226 5001 Next review: 01.07.2023
Contact Email: [email protected]
Version: 1.0
<Government Party letterhead>

BY EMAIL ONLY:

Dear <insert name>

<INSERT AGREEMENT NAME> AGREEMENT – EXTENSION AND VARIATION

I refer to the agreement between the <insert name of government party> (Government Party) and <insert name of
counterparty> dated <insert date>, for <insert short description of contract> (Contract).

I confirm that the parties have agreed to vary the Contract as follows:

1. extend the Contract by <insert period> with the extended term to commence on <insert date> and expire
on <insert date>;
2. <insert required variation (eg. clause X is replaced with new clause X; the words “previous words” are
replaced with the words “new words” in clause X; Schedule X is replaced with the new Schedule X
included as an annexure to this letter)>.

The parties further agree that in all other respects the terms and conditions of Contract shall continue to apply
without variation.

In consideration of the grant of this extension and variation by the Government Party, you will pay a variation fee of
$1.10 (GST inclusive) if demanded by the Government Party.

Please signify your agreement to the extension and variation by signing and returning the duplicate of this letter.

Yours Sincerely,

................................................................................
<insert name and title of signatory (a government officer who has authority on behalf of the Government Party to
enter into and exercise rights under contracts)>
---------------------------------------------------------------------------------------------------------------------------------------
<insert name of counterparty> hereby agrees to extend and vary its Contract dated <insert date> with the Government
Party on the terms specified in this letter.