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
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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.