Variations Order of Building Construction Project a Case from Nepal

Abstract

The main objective of this study is to identify the origin and causes of variation orders and their impacts in project cost and completion time for developing preventing measures which can be beneficial in upcoming similar projects. The study is conducted in project inside the Tribhuvan University premises, Kathmandu. The primary data were collected from the questionnaire survey and field study. A questionnaire survey was conducted with construction team who are related to the project. For the case study of the project, contract documents were obtained from the related offices which were thoroughly studied to obtain the project related findings about variation orders relating to project cost and completion time. Five ranking linkert scale have been used for ranking the perception based relative importance index of respondents about causes of variation orders. Existence of variation orders inside Tribhuvan University premises, Kathmandu has been noted from the study. 9.85%, 5.99%, 10.37%, 12.32% and 21.02% cost above the contract amount has been incurred at the completion of the projects respectively. Similarly, 26.67%, 83.33%, 12.5%, 20% and 25% time for the successive contract has been increased by the extension of the contract completion time. From the study, main causes of variation orders are known to be change of plan, change of scope, defect of bill of quantities, lack of specified and appropriate competent construction manager and impediment in prompt decision making. Similarly, causes of variation orders impacting project cost are additional work, client financial problems/ delay in payment of bill and change in design. Causes of variation orders impacting project time are change in design, delay in payment and dispute between parties to the contract. The control measures for the variation orders are appointment of project manager to supervise design, preparation of bill of quantities with good estimate and adequate financial planning. The findings of this study will be beneficial for developers, designers and contractors in building projects and also to the Governmental authorities to develop preventing measures to eliminate or reduce variation orders.