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THESIS ABSTRACT

Variation Order in Rural Connectivity Improvement Project in Nepal: Causes, Impacts and Remedial Measures

Variation Order in Rural Connectivity Improvement Project in Nepal: Causes, Impacts and Remedial Measures

Student: Rajal Shrestha

Supervisor: Prof. Dr. Thusitha Chandani Shahi

Submitted Date: November, 2022

Abstract

A variation order is a written agreement to change the work from that agreed in the contract. In general, variation orders may involve change in scope, time and material for additional work etc. One of the most important problems in the construction industry is variations. They occur in every construction project and the magnitude of these variations varies considerably from project to project. In this study, six contract packages of civil works under Rural Connectivity Improvement Project (RCIP) selected to identify the causes of variation order and its origin and to assess the impact of variation orders regarding project performance. Furthermore, this study have tried to explore the preventive measures to minimize the significant causes of variation orders in rural road construction as well as suggest mitigation measures of prominent impacts of it. The questionnaire survey, Key Informant Interview (KII) and project documents were used to collect data regarding causes and impact of variation orders for this study. The data gathered was streamlined and analysed using simple statistical tools mean, relative important index with ranking of variables. Bar chart, pie chart, histograms and tables used to present data and result of findings. From the study, it is found that, Errors and omissions in design/items of works, Change in design/materials/procedures/Specification, Differing site conditions, Employer instruct additional works etc. are major significant causes of cost variation. These causes are associated with employer, consultant as well as external factors. Similarly, Time extension (Time overrun), direct cost /Indirect cost increase (Cost overrun), Revision to work method, Staff turnover; Claim and dispute, etc. are major impact of variation order in RCIP Project. Finally, the preventive measures to reduce the causes and impacts of cost variation orders are use of standard of procedure (SoP) for implementation of contract, comprehensive site investigation, review of DPR properly, conduct capacity development program and ensure good participation. Proper coordination between three parties of construction employer, consultant and contractor is must for timely solving of issues of changes in construction, which may lead to requirement of cost variation.

Keywords

Rural Road, Variation Order, Relative Importance Index, content analysis