A STUDY FOR THE CAUSES OF VARIATION ORDERS IN DIFFERENT SECTORS OF CONSTRUCTION PROJECTS IN ERBIL GOVERNORATE FROM THE POINT OF VIEW OF THE INVOLVED PARTIES

Jihad Mohammed, Aksana

	A STUDY FOR THE CAUSES OF VARIATION ORDERS IN DIFFERENT SECTORS OF CONSTRUCTION PROJECTS IN ERBIL GOVERNORATE FROM THE POINT OF VIEW OF THE INVOLVED PARTIES
Journal of Engineering and Sustainable Development
Article 1, Volume 20, Issue 5, 2016, Pages 30-54
Author
Aksana Jihad Mohammed
Abstract
A Variation order is a common phenomenon in any project. There are many causes that may lead to variation order in a construction project. This paper aims to investigate and identify the most significant causes of variation orders in different sectors of construction in Erbil Governorate, and their effects on the projects in order to manage them and find the solutions that can eliminate them by putting some control measures. This research was conducted by questionnaire survey to elicit 30 causes of variation orders from the point of view of owners, consultant engineers, and contractors. A questionnaire submitted to a sample of 140 persons specialized in construction sector in Erbil Governorate. Out of 140 questionnaires 120 were returned forming 18 of owners, 62 of consultant engineers, and 40 of contractors. Then the questionnaire was analyzed statistically. Also a case study adopted for 30 projects of different construction sectors that constructed during 2010-2013 to calculate the percentage of cost and time overrun due to variation orders. Also a comparison study had made among the results obtained from this study and some countries for the major causes of variation orders in construction projects. The results of the questionnaire indicate that Owner and consultant engineer are the most responsible parties causing changes. The most important causes of variation orders in construction projects in Erbil Governorate are change in bill of quantities, change of plans or schedule by Owner, inadequate contractor experience, lack of consultant's experience about availability of materials or equipment, errors and omissions in design, and Owner’s financial problems. However no matter what is the reason of variation order, respondents agreed that their occurrences often resulted in dispute and dissatisfaction among the parties involved in the project with regard to their resolution. Apart from that variation order also resulted in project delay and difficult to manage as they often involved in new sum of additional or deduction of contract price. To control variation orders the respondents agreed that contract document should be checked and reviewed, a revue for design should be made before change approval, the scope of variation orders should be made clear, variation order should be negotiated by knowledgeable persons, registration of the consultant company should be reviewed to reflect its capabilities, owner should make adequate financial planning during planning stage to avoid changing plans later or during construction, and ensure the availability of materials during the study phase and before starting the design to specify them in order to minimize changing orders of specifications, material, and equipment used.
Keywords
Construction Projects; Variation orders; Causes of variation order; Effect of variation order; Control of variation order; Project performance; DISPUTES

Statistics Article View: 193 PDF Download: 1