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Variation Orders Reduction | Assignment

   

Added on  2022-08-31

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Variation Orders Reduction 1
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Variation Orders Reduction 2
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 Reduction 3
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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