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A Study of Impact of Variation Order on Project Cost and Time in Public Schools Building Construction under Disaster Resilience of Schools Project, Nepal

A Study of Impact of Variation Order on Project Cost and Time in Public Schools Building Construction under Disaster Resilience of Schools Project, Nepal

Student: Dibin Paudel

Supervisor: Er. Hari Mohan Shrestha

Submitted Date: October, 2023

Abstract

The greatest inevitable situation in construction projects is variation. The occurrence of variation orders in building construction projects can escalate the project cost and duration, so proper analysis of the causesand impacts of variation orders on project performance has the potential to minimize or substantially refine the output, thereby enhancing the overall performance of the project. This research aims to determine the causes of variation order, examine the factors and causes that lead to them, and evaluate the effects they have on the cost and completion time of building construction projects. The study also aims to explore ways to prevent or reduce the occurrence of variation orders and their effects on building construction projects. The objectives of the study were achieved through three approaches i.e. Questionnaire Survey, Key Informant Interview and Field Observation. In the beginning, literatures were reviewed, key informant interview was done and questionnaires were distributed to identify the causes of variation order, evaluate the impact of variation order and explore the preventive measures to minimize variation order in public school building construction under Disaster Resilience of Schools Project. Same set of questionnaire was sent to client, consultant and contractor. Among seventy questionnaires distributed, a total of sixty three valid responses were received. Additional works and change in design, Poor design, poor survey, Desired profitability, and Unforeseen problems are found to be the main causes of variation orders. The major impacts of variation order on project cost are Increment in the total project cost, Increase in overhead expenses and Cost overrun and budgeting challenges. Variation orders also makes an impact on project time as there is Delay completion schedule, Extended project duration and Delay in progress. And, the major preventive measures that can be adopted to minimize variation orders are that The consultant should produce a design as per site condition and real case scenario, Place experienced and knowledgeable executives in the estimation and design department and All involved parties should plan adequately before works start on site. To accomplish the objectives of the research study, five packages under Disaster Resilience of Schools Project were taken into consideration. The analysis result shows that in the package DRSP/CLPIU/074/75-Kavre-BKT-01 the cost variation was 10.62% and time variation was 34.25%. In the package DRSP/CLPIU/074/75- Sindhuli-01 the cost variation was found to be 10.25% and time variation was 110%. In the package DRSP/CLPIU/074/75-Ramechhap-01 the cost variation was found to vii be 14.55% and time variation was 35.55%. In the package DRSP/CLPIU/074/75- Dolakha-01 the cost variation was found to be 10.95% and time variation was 28.89%. In the package DRSP/CLPIU/074/75-Sindhu-KTM-01the cost variation was found to be 12.28% and time variations was 38.51%. This research study recommended that government agencies and construction experts should collaborate closely taking into account significant factors such as the causes, consequences, and preventive actions, in order to reduce variations both prior to commencing project execution and throughout the construction phase.

Keywords

Variation Order, Causes, Impacts, Preventive Measures, Public School Building, Relative Importance Index.