This research investigates the prevalence and implications of cost variations in the construction of Sabha Hall buildings in Lumbini Province, Nepal, focusing on the primary causes, impacts, and mitigation strategies for these variations. With the construction sector playing a pivotal role in Nepal's economic development and infrastructure improvement, understanding cost variations is critical for ensuring project success and sustainability. The study specifically examines three completed Sabha Hall projects, analyzing data from contracts, project documentation, and stakeholder surveys, including clients, contractors, and consultants. For this research both primary and secondary data were collected from the project personnel under DUDBC who was directly involved in contract management and variation approval. Questionnaires were prepared and distributed to 59 respondents of which only 37 responses were received. The responses were analyzed to find out the causes of cost variation and ranked with the help of RII to find out the top five causes of cost variation in Sabha Hall Building projects. Likewise major impacts of cost Variation were assessed and ranked. Further, probable ways to minimizing those cost variation were explored. The study found that, the major causes of the cost variation are Changes in plans or scope, Socio-cultural factor, Ambiguous design details, change in specifications, and change in design by consultant. highlighting. 20% of top five issues that caused cost variation in Sabha Hall building project were categorized under client related factor, next 20% were under external (Others than client, contractor and consultant) and remaining 60% consultant related factors. Prominent impacts due to cost variation in Sabha Hall building project were found to be Project Schedule, Consultant- Client Relation-ship, Performance and Work man ship top three impacts of Cost Variation followed Financial Impact to the Contractor and Stockholder’s perception. To address these challenges, the thesis proposes several strategies for minimizing cost variations. These include the adoption of Building Information Modeling (BIM) for enhanced project visualization and coordination, strict adherence to ethical and moral obligations in project management, amendments to the Public Procurement Act (PPA) and Public Procurement Regulations (PPR) to improve procurement practices, binding stakeholders under clear rules and laws to ensure compliance, and fostering better coordination among all project stakeholders. vii The findings of this research offer valuable insights for policymakers, project managers, and construction industry stakeholders in Nepal and similar socio-economic contexts. This study not only contributes to the academic body of knowledge on cost variations in construction projects but also provides practical recommendations for enhancing project management practices in the context of Nepal's developing economy and construction sector.

Keywords

Cost Variation, Client, Contract, Stakeholder, Impact

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