Causes, Effects and Solutions in Minimising Variation Order

Lim, Shu Xuan (2022) Causes, Effects and Solutions in Minimising Variation Order. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

Malaysia, as a developing country, relies heavily on the construction industry. A variation order is an essential element in any construction project that allows adjustments to the original contract. A variation order can result in an increase or decrease towards the contract amount. Additional expenses, such as the impact on other aspects of the project, may cause modifications in the final bill of a contractor. The variation is subject to the approval from the employer. A construction contract is a legally binding agreement that subject to change (Gobana & Thakur, 2017). The variation order refers to subtraction, extra work, modifications and substitution in terms of quality, quantity and duration of work. When working with contractors, construction companies are also more likely to be able to cut waste. A thorough research will be conducted in order to discover the solutions for preventing or minimising variation orders to take place in construction projects. The study will mainly look at the causes and variables that lead to variation orders, the impacts of variations orders result to construction works and the measures that construction parties can use to reduce the number of variation orders. The aim of this study is to look into the causes, effects and solutions for reducing variation orders on construction projects in Malaysia. Its goal is to figure out what causes variation orders in construction projects. Primary data and secondary data will be used to conduct the research. It will only deal with the causes, effects and strategies that affect the construction industry. Data will be gathered from a variety of construction parties, including developers, contractors, consultants, architects and others.