Yellow Book Variations & Claims Toolkit (UK)

The Yellow Book uses a distinctive Cost + Profit valuation model that's unlike anything in JCT or NEC. "Cost" is defined at cl.1.1 as any cost properly incurred by the Subcontractor. "Profit" is defined in paragraph 14 of the Subcontract Agreement as a percentage of the applicable Cost — typically 8% to 15%. Every Variation under cl.16, every Subcontractor-proposed Variation under cl.17, and every claim under cl.19 follows this same valuation formula: additional Cost properly incurred plus Profit at the agreed percentage.

The procedural discipline is just as distinctive. Under cl.19.1, the Subcontractor must notify the Contract Manager within 10 days of becoming aware of the event giving rise to the claim — not 10 days from when the cost crystallises. From that date, contemporary records must be established and maintained. The substantive submission with grounds, facts and records follows under cl.19.2 "as soon as possible thereafter". Late notification under cl.19.1 doesn't automatically invalidate the claim, but the Contract Manager may take into account any prejudice caused by late notice when determining the value under cl.19.3. Cl.17.4 carries its own special circumstances — Subcontractor-proposed Variations to eliminate a potential defect or hazard can be referred to an Expert under cl.48 if the Contract Manager refuses to order them, overriding the normal "final, conclusive and binding" rule at cl.17.3.

Most Subcontractors administer Yellow Book Variations and claims in a row of separate spreadsheets, each with its own version of the Profit percentage and its own cost build-up logic. The numbers diverge, the deadlines slip, and disputes start with the disorganisation. This toolkit fixes that.

The Set-Up Page captures the Profit percentage from paragraph 14 of the Subcontract Agreement once, and every valuation on every tab uses it. The Variation Register tracks Contract Manager-ordered Variations under cl.16 through the workflow — Notified → Quotation in preparation → Quotation submitted → In discussion → Implemented → Disputed → Withdrawn — with three valuation methods supported (Cost + Profit per cl.18.3, Fixed Price per cl.18.2, Contract Manager determination per cl.18.1). The Subcontractor Variations tab logs cl.17 proposals with a Cl.17.4 Special? column that flags defect and hazard eliminations in amber as a deliberate reminder that the Contract Manager's decision isn't final on those. The Cost Build-Up tab applies the cl.1.1 Cost definition with sections for Labour, Plant & Equipment, Materials, and Sub-subcontractor costs, then adds Overhead and Profit to produce the Total Valuation submitted under cl.18.3. The Claims Register tracks every cl.19 claim from event awareness date, auto-calculates the 10-day cl.19.1 deadline, and flags any claim notification overdue.