The Ways to Minimized the Occurrence of Variation Order (VO) in Malaysian Construction Project

Chin, Khai Foong (2022) The Ways to Minimized the Occurrence of Variation Order (VO) in Malaysian Construction Project. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

Variation order (VO) is change order that will be issued during the construction stage. Although VO is not originally included in standard form of contract used in Malaysia but both commonly used SFC which is Pertubuhan Arkitek Malaysia PAM 2018 and Public Works Department of Malaysia PWD 203A 2010 consists a Clause for it. The Clause enable Architect or Superintendent Officer (S.O.) issue an Architect Instruction (AI) or S.O Instruction requiring any variation of work. The reason behind VO might due to the requirement of client, statutory, error & omission in design and much more. Moreover, VO also come with negative effect such as delay and project cost overrun. Hence, this research mainly focusing on identifying the factors that can cause variation order, investigating the impact of variation order and establishing the solution to minimise the occurrence of variation order. To achieve the objectives, several actions have been taken such as reviewing journals, reports, articles and distributing questionnaire to personnel related to construction industry to collect their opinion. After that, SPSS software is used to analyse the data collected. As a result, most people agree that rank 1 factor that cause variation order is Errors & Omission in design, rank 1 for effects of VO is Delay in project completion and Rank 1 for solution to minimise occurrence of VO is Meet face to face regularly