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In this tutorial, the speaker discusses the importance of variations in building contracts. He highlights a specific clause regarding variations that states if a change to the contract incurs an additional cost, the builder will add a reasonable margin on top of the actual product cost to the contract price. This margin is predetermined in the building contract. Additionally, the video touches on the process for variations that result in a deduction from the contract price, explaining that it will similarly be adjusted based on the reasonable price set forth. The tutorial emphasizes understanding these terms to avoid unexpected costs during construction.
