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