Variation Orders PPT Final

 

AGENDA 

TITLE

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INTRODUCTION

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STATEMENT OF PROBLEM

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AIM AND OBJECTIVES

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METHODS

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FINDINGS CONCLUSION AND RECOMMENDATIONS

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CONTRIBUTION TO KNOWLEDGE

 

MAY 2016

VARIATION ORDERS AND CONSTRTUCTION PROJECT DELIVERY IN LAGOS STATE By

DIALA STANLEY STANLEY IFEANYI IFEANYICHUKWU CHUKWU (069042022)

 

What is Variation Order? 

Variation- A variation is something which deviates from a former or normal state, standard or type’ (Oxford, (Oxford, 2001). Variations Variations in construction contracts can mean changes to the terms of the contract or it can ca n mean changes to the scope or specifications of the work.

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Varia ariatio tion n Ord Order er-- A variation order is the formal document that is used to modify the original contractual agreement and becomes part of   project’   project’ss documents which is often in evitable and are expected both at the design and cons co nstr truc ucti tion on st stag ages es (A (Aki kins nsol olaa et al al., ., 19 1997 97). ).

Variation order is also a written order issued to the contractor on a project by the owner/representative which authorizes a change in the work or an adju ad just stme men nt in th thee co cont ntra ract ct sum or ev even en co con ntr trac actt ti tim me.

 

Statement of Research Problems 

Many uncertainties and inconsistencies, changes occur during the construction process which often lead to issuance of variation orders e.g. design changes from the agents of variation orders i.e. clients, consultants, contra con tracto ctorr and oth others ers (un (unfor forese eseen en cir circum cumsta stance nces). s).

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Most construction works are complex and so the processes and tasks involved cannot be predetermined which causes variation order as the  project progresse progresses. s.

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Productivity being the amount of output over a unit of time. As the number  of variation orders increases, it consequently leads to more drop in

 productivity.  productivity.  Variation orders has been a major contributor to low quality of works, time and cost overruns and therefore there is a need for the reorganization of  resources and ensuring that timely delivery of proje jeccts within the budgeted cost. 

There is a need for work programme to be revised accordingly. Since ‘time is money’ it will have direct impact on the cost.

 

AIM and Objectives of the Study

AIM The aim of this research is to identi ntify the major causes of variation ord orders in bu buiildi din ng construction projects, the impact on delivery time and cost in Lagos state in order to  proactively minimize them.

OBJECTIVES 

To determine the level of o f awareness of variation orders amongst the project stakeholders.

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To identify the origin agents and how ho w they cause variation orders in construction industry.

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To determine the impact of o f variation orders on project delivery time and costs.

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To identify strategies to minimiz minimizee variation orders in construction industry.

 

Research Methodology

Research methodology describes the practical way in which the whole research project has  been organized which was was discussed under the following sub-headings: 

Research design: Cross-sectional surveys which utilized questionnaires was considered the most appropriate for this research.

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Population of the study: The population of this study comprises of design professionals and contractors involved in building projects in Lagos State.

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Sample size Determination: Roscoe (1975) as cited in Cavana, Cavana, Delahaye and Sekaran (2001) suggests that sample size which is more than 30 and less 500 is adequate, hence the decision to chose within the range.

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Sampling Technique: Purposive sampling was used as it helped to take decision about individual participants who are are most likely to contribute appropriate appropriate data in terms terms of relevance and depth.

 

Research Methodology continues 

Research Instrument: The research instrument that was adopted is structured questionnaire, which was used to generate information from the respondents.

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Reliability of Instrument : The pre-testing method was used to determine the feasibility of the study and reliability of the instrument. 20 questionnaires were used for

the pilot study, the pre-test pre-test result scores were calculated using Cronbach’s Alpha via the aid of Statistical Package for Social Science (SPSS) 16.0 version. Dimensions

Items

Cronbach’s

Alpha 1

The level level of of aw aware arenes nesss of of va varia riati tion on or order derss am among ongst st tthe he pr proj oject ect stakeholders.

13

.901

2

The major major or origi igin n agent agentss an and d how how they they cau cause se varia variati tion on o orde rders rs in construction industry.

24

.950

3

The impact of variation orders on project delivery time and costs.

16

.911

4

Strategies to minimize variation orders in construction industry.

11

.932

 

Research Methodology continues

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Proceduree for Data Collection: Procedur

Data was collected from design professionals and contractors involved in building  projects in Lagos State construction firms firms through a well-structured questionnaire. 

Proceduree for Data Analysis: For the purpose of this research, two types were used Procedur 

Descriptive Analysis: Measures of central tendency, such as mean and standard deviation were used .

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Inferential Analysis: Chi-square and One Sample T-test were used to test the hypothesis.

 

Summary of Findings Based on the analysis done. The following was revealed. 

It was ev evid ideent th that at maj ajor oriity of th thee st stak akeh ehol olde derrs ar aree awar aree of th thee exi xist steenc ncee of va varria iati tion on order in construction. Variation orders clause are provided because complex operations in construction projects are sometimes inevitable and unforeseen (Moh (M oham amm med 20 2001 01)) an and d th thes esee co com mpl plex exit itie iess of ofte ten n gi give ve ri rise se to un unwa want nted ed si situ tuat atio ions ns li like ke variat var iation ionss wit with h att attach ached ed ef effec fects. ts.

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The study also revealed that from the perspective of the originating agents of  variation orders the clients, consultants are the main agents. The clients cause variation through the change in the initial specification given while the cons co nsul ulta tant ntss ca caus usee cha hang ngee th thro roug ugh h th thee in inad adeq equa uate te wor orki king ng det etai ails ls,, de desi sign gn er erro rors rs and om omis issio sions. ns.

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In add ddiiti tio on, fro rom m the per ersp speecti tiv ve of the prevalen entt causes of var ariiat atiion order erss. The  budget constrain constraints ts often leads to the issuance of variati variation on orders, inadequ inadequate ate work wo rkin ing g dr draw awin ing g of ofte ten n le lead adss to va vari riat atio ion n or orde ders rs and po poor or pr proc ocur urem emen entt ap appr proa oach ch ofte of ten n le lead adss to va vari riat atio ion n or orde ders rs..

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Finally from the perspective of the impacts of variation orders on project cost and ti and time me.. Th Thee red educ ucti tion on of va vari riat atio ion n or ord der erss of ofte ten n si sign gnif ific ican antl tly y pr prev even ents ts co cost st an and d timee ove tim overru rruns. ns.

 

Conclusion Based on the research conducted. conducted. The following conclusions were arrived at. o

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Variation orders are therefore seen as an addition or omission, alterations and substitutions in terms of quality quality,, quantity and schedule of works. Variation orders most times cannot be completely averted but can be minimized minimi zed (Mo (Moham hammed med,, 20 2001) 01).. Thee co Th comp mple lexi xity ty,, un unce cert rtai aint nty y, lo long ng du dura rati tion on,, in invo volv lvem emen entt of se sequ quen enti tial al ta task skss and relationships among project participants render the projects prone to variation which often creates extra work, time and money for the constructio const ruction n proj projects. ects.

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Variation orders could be from any of the stakeholders and othe ot hers rs(u (unf nfor ores esee een n ci circ rcum umst stan ance ces) s) wh whic ich h is of ofte ten n det etri rime ment ntal al an and d do no nott on only ly affect productivity alone but consequently leads to an overrun in the time and an d co cost st..

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It is pertinent pertinent that all stakeholders should be be involved at the design stage so as to clarify the project objective at the early stage.

 

Recommendation 

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The construction firms should pay attention to the various factors to minimize the occurrence of variation orders. Investigations must be carried out  properly by qualified professionals at the initial stage (in the pre-tender strategies required by all involved parties ) and adequate planning in advance before work starts at the site. The estimates have to be b e prepared  properly by experienced professionals and clients should provide a clear brief of the scope of work. Consultant must focus on controlling the recurrent change in design; avoid inadequate working drawing details through systematic detailing of the design.

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Consultants should ensure that the design/specifications fall within the approved budget and the budget team should be appointed early. early.

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All parties should forecast unforeseen situations. Closer consultant coordination is required at the design stage, and the use of an experienced hands to produce a concluding design, working drawings, and contract drawings to be completed at the tender stage.

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Maintenance of proper communication channels and documentation is very important in terms of variation order management.

 

Contribution to Knowledge 

The study has contributed to the t he identification of variation orders resulting from various agents of change which are the stakeholders in the construction industry.

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The study has also identified the root causes of variation orders and how they can be minimized in order to meet up with the performance characteristics of tim imee and cost and ensuring maxim imu um proje jecct and quali litty deli de liv ver ery y of proje ject ct work rkss an and d ea earrni nin ng th thee co con nst strruct ctio ion n fir irms ms th thee good wi will ll to secu se cure re ot othe herr co cons nstr truc uctio tion n wo work rkss fr from om cli clien ents. ts.

 

Thank you