Causes and Effects of Variation Orders in Road Construction Projects: The Case of National Works Contract Administered by Addis Ababa City Roads Authority.
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2015-04
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Abstract
This thesis assesses variation orders in national works contract of Addis Ababa City Road projects by investigating the predominant causes, studying their effects on the project, identifying initiating parties, and suggesting controlling remedies to alleviate such related problems. The main purpose of this study was to study, identify and mitigate those common and frequent variation orders encountered in Addis Ababa City Road projects which are being reflected in the projects delay, cost overrun, and disputes.
In order to obtain the view of many role players such as employer, consultants and contractors in the industry on these phenomena a concept study was developed through literature survey. Following a survey was conducted and analyzed using a questionnaire and desk study assessment. Based on the analyzed data the most predominant causes, origin agent, consequential effects were identified and controlling methods were also proposed.
The results revealed that inadequate design, error and omission in design and ambiguous design were the main causes of consultant originated variations while Right of way (access to site) problem, change of plans or scope and inadequate objectives were the main causes of client originated variations. The study further revealed that in most situations variations have resulted in cost overrun, time overrun and disputes. The finding indicated that consultant is the major source of variation orders. It is also recognized that the issue of variation order in road construction projects of Addis Ababa City is serious and could be managed by applying proper construction management tools at design, construction and design-construction interface stages. Finally remedial recommendations are forwarded based on the findings of the results.
Key words: cause, change, cost overrun, effect, time overrun, origin agent, variation, variation order.
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Keywords
cause; change; cost overrun; effect; time overrun; origin agent; variation; variation order