A Study of Factors and Impacts of Variation Order in Construction Project and Strategies to Overcome

Lee, Jiahui (2021) A Study of Factors and Impacts of Variation Order in Construction Project and Strategies to Overcome. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

In Malaysia, construction sector plays a pivotal role in the economy development. Recently, Malaysia was ranked 24 out of 148 countries above than Korea and China as the most competitive countries by World Economic Forum (WEF). A good economic condition achieved in Malaysia is due its due to its policies, structure, performance, behavior, and good decision about the entire economy of a country. Therefore, Malaysia involved in many types of constructions projects to enhance the economic growth. Nevertheless, construction industry always suffers from various challenges, problem and issue during the construction process whereby variation orders is one of the issues. Variation order in term of construction is refer to the amendment and modification to the original work as stated in the contract. The variations will involve both addition and omission work to the original contract for the circumstance of any changes made by the parties in the construction project. Hence, the objective of this research is to identify the factor causing to variation order, its impact towards construction projects and strategies taken to minimize large number of variation order. Besides, a literature review is conducted to determine the theoretical background to the study which serves to enhance and consolidate knowledge base is established. In order to collect data and information for this study, the researcher has carried out a questionnaire survey through online by distributing the questionnaire form in google form. Subsequently, the collected data is analyzed by the method of frequency, descriptive and Pearson correlation analysis with SPSS software. The explanation of the results and findings are being further discuss in the last chapter of this study and associated with some recommendation for researchers on their next research proposal.