Strategies for Reducing Variation Orders in Oman Building Projects

This report investigates the pervasive issue of variation orders in Oman's construction projects, identifying them as a significant contributor to project delays and cost overruns. The study, based on a literature review, questionnaires, and expert interviews, focuses on the city of Muscat, Oman. It explores the definition, types, causes, and impacts of variation orders, emphasizing the need for effective management strategies. The research identifies eleven potential strategies for minimizing variation orders. The report discusses the methodology, including data collection and analysis, and concludes with recommendations aimed at reducing variation orders in Oman's construction projects. The study highlights the importance of proper planning, detailed site investigations, and clear communication among stakeholders to mitigate the adverse effects of change orders. The report is a valuable resource for construction professionals seeking to improve project outcomes in Oman.

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ABSTRACT
Change orders are among the core challenges that construction stakeholders encounter in their
daily undertakings. Variation orders are the common causative agents of an increase in the total
contract value by nearly 25%. They add new items to the contract that were not initially
included, changing item specifications in the contract as a result of unforeseen conditions or the
need by the stakeholders to change the overall scope of the project. In construction, variation
orders normally lead to the creation of adverse impact in relation to the project sustainability and
overall progression.
This study focuses on studying variation orders in the building projects in Oman and ways to
reduce them. Due to the complexity of various projects, variation is a common phenomenon. It
is common in all projects and it is the main determinant on the project time limit and the total
anticipated budget of the construction project. in Oman, variation orders are observed among
the most common and frequent occurrences in almost all projects. Like most parts of the middle
east, the country is facing numerous variation orders in her projects. From past experiences,
variation has been known to impact all aspects of projects. This study focuses on minimizing the
possible occurrences of variation in the construction industry. The primary goal of the study is to
suggest possible ways of reducing change orders in the construction projects in Oman.
A comprehensive literature review which led to the identification of 11 possible ways in variation
order minimization strategies that were mapped in a frequency table. The data was obtained
through the use of questionnaires and interviews. Various interviews were conducted with
selected experts in public construction projects experts in seeking their opinion. Questionnaires
were sent to various construction projects stakeholders and regular participants with the
feedback critically analyzed using the relative index method. Data analysis was conducted with
a literature review to improve its validity. The result of the study posits the best ways in which

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variation orders can be minimized in Oman construction projects. The research study concludes
on the findings and the recommendations made to reduce variation orders in the projects.
Keywords: variation orders, Oman, construction, building projects, strategies.
INTRODUCTION
Almost in all countries where new construction projects are being set up, variation orders seem
a usual occurrence. Most building projects in Oman were delayed mainly by certain levels of
variation orders which consequently led to the increase of the total cost of the project. currently,
most building projects in Oman are facing variation orders as the main challenge to efficient and
effective completion of the project within the scheduled period and according to the first
contracted budget. However, in order to correct the unavoidable changes during the
construction process, variation is highly useful, (Alnuaimi and Mohsin, 2013, December).
Despite the many delays associated with variation orders, there is no unique strategy that has
been set to reduce changes orders efficiently and effectively. However, with an appropriate
strategy and effective management, variation orders can be minimized. Variation orders have
the capacity to affect the construction projects- public or private-, therefore, setting the right
strategy will come in handy in reducing, possible elimination and enhance the levels of
improvement in the general performance of the building projects.
Construction projects in Oman
With a rich background of the research problem statement based in the construction field, it is
important for the study to posit possible ways in which variation orders can be minimized in the
construction projects in Oman, (Memon, Rahman, and Jamil, 2014). In Oman, there are
numerous construction projects being set up every single day. In order to attain the goal of this
study, the overall scope will be too large to handle effectively. Therefore, the study will be

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limited to the city of Muscat, Oman where most of the construction projects are being done. The
various stages of the study include the introduction, review of the previous literature, project
methodology, data analysis, and discussion the finally the conclusion part.
LITERATURE REVIEW
Introduction
Construction simply refers to as a mission taken to establish a product or service that is unique
within the specified scope, cost, time frame and expected quality. Practically, most of public
construction projects experience variation orders or delays that derail the timely completion of
the project as per the intended conditions.
In most projects, variation is the most common thing that can happen even during the signing of
the contract. Therefore, variation is among the inevitable happenings in construction. Despite the
various actions employed by the project stakeholders, variation is likely to happen which will be
detrimental to the project. the most common type of variation experienced in most public
construction projects is the scope variation.
This chapter reviews previous literature that addresses variation orders in the public construction
projects in Oman. It covers the definition of variation, types of variation, causes and impact of
variation orders and various strategies that can be developed to reduce variation orders in
projects.
Variation definition
According to the available literature, there is no one single definition concerning the elements of
variation. Various contract standards have defined variation differently, but principally, all
definitions have more or less similar meaning. According to Jadhav and Bhirud (2015), variation

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refers to any form of change to the works that are approved as a form of change. The variation
order is defined as an official order document used in changing the original elements of a
contract which becomes a part of the contractual documentation, (Mohamid 2017). Islam and
Khadem (2013) pointed that project variation include alteration of the project design, change in
the building works, alteration in the project construction programs that are as a result of
modification of the initial project conditions or requirements. Generally, variation simply means
a change, an alteration, a modification, amendment or the revision of the original provision,
contract or intent.
Types and nature of variation orders
Variation order nature
According to the research team of Alnuaimi and Mohsin (2013, December) variations can be
categorized into two groups; emergent variation and anticipated variation. An anticipated
variation orders are preplanned and always occur as intended. Emergent variation orders occur
spontaneously and they are not as a result of intentions of the project participants. Project
variation can also be viewed through the necessity it comes with. In this manner, they can be
viewed as required and elective variation orders. According to Jadhav and Bhirud, (2015) ,
required variation orders gives no option for the team but to accept and make the variation
whereas elective variation order gives the team a choice whether to implement it or not.
Types of variation
Variation orders are a common phenomenon in the construction industry and can result from
different sources, project stages, and can originate from various causes whose impact can be
detrimental to the project. critically, variation can cause delays to the projected completion time
for the project and can impact the projected cost.

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Categorization of the variation orders take into account the impact they have in the construction
domain. The table bellow summarizes the classification of variation orders
Variation order base Variation type
Need Required or elective variation, regulatory or
preferential, nondiscretionary or discretionary
Time Emergent or anticipated, post-fixity or pre-
fixity, reactive variation or proactive variation
Impact Disruptive, beneficial or neutral variation
order
Causes of variation orders
Various available literature scholars have different causative agents of variation orders. Various
clauses in the construction constructs allow project stakeholders involved to initiate variation
orders at will within the project scope ambit. However, variation orders are common and
understanding their causes is essential.
Variation order causes might result from both external factors and internal factors affecting the
project. the common internal factors might be as a result of technology applied in the project,
change in expectations of the project owner, change in the activities employed by the competitor,
changes in the government provisions and policies, demographic changes as well as economic
changes. The diagram bellow illustrates some of the factors that cause variation orders in the
public construction projects in Oman

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Variation orders management
Normally, the construction contracts are very complex and the processes undertaken to realize
the intended project is rigorous. This makes variation common in these projects. Change orders
are normally put forward as a contract instruction. Once the instructions are put forward, the
project owner reimburses the project contractor regarding the same. This requirement for the
owner involves various stages affecting the measurement of the project works, affected work
valuation and payment of the varied works.
Varied work valuation can be done in the following format as per the recommendations of
Verweij, van Meerkerk, and Korthagen (2015):

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i. Rates in the case of the contracted rates with similar varied works and the extent of
execution is similar under the prevailing conditions
ii. A day’s work including the payments of the varied work executed with the prime cost
calculated including the materials used, labor cost and plants hired to accomplish the
work
iii. Quotations submitted by the project contractor if necessary
iv. Quantum meruit: miscellaneous approach where variation cost is agreed through
negotiations.
The figure bellow illustrate various ways in which variation orders can be management

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Variation Orders Reduction
In order to reduce levels of variation orders, an ultimate strategy should be established that will
be highly beneficial to the project owner. Variation orders can be reduced if all the stakeholders
involved in the project are well aware of the preliminary requirements of the project before the
tendering process is done, (Hanif, Khurshid, Lindhard, and Aslam, 2016). For example, a detail
site study and soil analysis should be conducted. Despite the fact that design omissions and

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errors cannot be avoided, it is possible to greatly reduced if the stakeholders conduct the
preliminary research and project analysis process before committing to accomplish the project.
another way of reducing variation orders in the project is by the project designers ensuring that
activities are assigned enough time and qualified and well-experienced personnel are deployed to
deliver the project within the proposed time frame. According to Verweij, van Meerkerk, and
Korthagen, (2015) the following are the recommendations that can lead to the reduction of
variations in the project. among the many recommendations suggested, Baharuddin (2013)
pointed out the various strategies that will effectively help in reducing project variation orders.
Most researchers conducted extensive studies to determine the most effective strategies that will
reduce variation in the project. most of the researchers suggested a listed of strategies that are:
a. Proper planning is required by all stakeholders in the project before the construction work
starts
b. The project consultant should generate a comprehensive contract document and a
concluding project design
c. The required drawings to be concluded on a timely basis before the commencement of
the project
d. Enough time should be allocated for the pretender planning phase of the project
e. Clear explanation of the project scope should be provided
f. Stakeholder forecast should be encouraged to determine possible variations that might
occur during the lifeline of the project
g. Proper communication should be encouraged
h. Experienced and highly dedicated employees should be in charge of the supervisory
work.

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i. Accurate procurement information and requirement should be obtained
j. Detailed and conclusive site investigation should be conducted in advance
k. Experienced engineers should head the design department of the project.
METHODOLOGY
Introduction
Research methodology chapter will adopt and identify the various techniques and tools that will
be deployed in carryout the study. The chapter will articulately describe the various approaches
which the study will be conducted. The methodology will reflect the planned activities that will
be conducted in relation to problem investigation, relevant information to be collected and the
method of information collection, and the approaches that will be adopted in analyzing the
collected information so as reduction strategies recommendations can be developed. When the
research will be conducted, steps and necessary procedures will be conducted. When the
statement problem is formulated, it will be possible to identify the kind of data required to
accomplish the study. The study that will be investigated in this study is strategies that can be
used to reduce variation orders in constructing public projects in Oman. There is an anticipation
that identification of these strategies will lead to reduction of variation orders of public building
projects.
CONCLUSION
This study will focus on creating recommendations on the strategies that can be used in
minimizing variation orders in construction and building projects in Muscat, Oman. From the
literature review, it is evident that proper planning is required by all stakeholders in the project

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before the construction work starts. The scholars have posited a clear evidence that project
planning should be done adequately prior to the start of the construction process. various
scholars have agreed that various strategies can be used in reducing the occurrences of variation
orders in the public construction projects. The strategies include: proper planning is required by
all stakeholders in the project before the construction work starts; the project consultant should
generate a comprehensive contract document and a concluding project design the required
drawings to be concluded on a timely basis before the commencement of the project; enough
time should be allocated for pretender planning phase of the project; clear explanation of the
project scope should be provided; stakeholder forecast should be encouraged to determine
possible variations that might occur during the lifeline of the project; proper communication
should be encouraged; experienced and highly dedicated employees should be in charge of the
supervisory work; accurate procurement information and requirement should be obtained;
detailed and conclusive site investigation should be conducted in advance, and experienced
engineers should head the design department of the project. These strategies will highly reduce
variation orders occurrences during the project life.