Track: Construction Management

Abstract

Variation orders are unwanted but inevitable reality of any construction project and affect project performance as they adversely affect productivity and project cost. Moreover, projects with many variation orders cause the contractor to achieve lower productivity levels than planned. Therefore, the study is based on the impact of variation orders which adversely impact project performance in terms of cost, time, quality degradation, health and safety issues and professional relations. Quantitative approach was adopted for this study. 159 Questionnaires were analysed after the data was collected online via a structured questionnaire.Factor analysis was conducted, correlation matrix, coefficients has been conducted to ensure visibility of co-efficients greater than 0.3 and Kaiser-Meyer-Oklim (KMO) and Bartletts were conducted. From the findings it transpired that additional payment for contractors; delayed schedule completion; increases in project cost; time overruns, logistics delays also causes disputes among the professional team were some of the impact caused by variation orders just to mentioned a few. The more the number of variation orders, the more they are likely to affect the overall construction delivery cost. In fact, variation orders have both a direct and indirect effect on cost.