Assessing the Impact of Variation Orders on Public Building Projects in Addis Ababa

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Date

2014-10

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Addis Ababa University

Abstract

Variation is inevitable in construction projects due to the complex nature of the construction industry. It is common in all types of construction projects and it determines the time limits and anticipated budget of the projects. Variation order is observed as one of the most frequently occurring issues in construction projects in Ethiopia. Like other regions of the country, construction projects in Addis Ababa are suffering from variation orders. These variations are known to impact various aspects of the projects. This study assessed the impact of variation orders on public building projects in Addis Ababa to reduce them. The objectives of the study were firstly to determine the causes of variation orders; secondly to identify the impacts of variation orders; and lastly to recommend strategies to minimize variation orders. Through a comprehensive study of literature review, resulted in identification of 38 common causes of variation orders, 15 impacts of variation orders and 15 recommended strategies to minimize variation orders and these variables were mapped in frequency table. A desk study, interview and questionnaire survey were carried out to identify the causes of variation orders, their impacts on public building projects and to seek recommendations to reduce them. The desk study conducted on five selected projects and the causes of variation orders and their impacts on the projects were identified. Interviews were made with selected experienced public building project participants for expert opinion. The questionnaire responses were analyzed using the relative index method. A triangulation method on the desk study, survey and the literatures was done to improve the validity of the findings from the study. The results indicated that design changes, incomplete contract documents, and impediment in prompt decision making process were the most causes of variation orders. The results also showed that completion schedule delay, increase in project cost, and additional payments for contractor were the most impact of variation orders. The findings also suggested the most recommended strategies to minimize variation orders. These strategies were to produce a concluding design and contract document, to complete drawings at tender stage, and to supervise the works with experienced and dedicated supervisor to minimize variation orders on public building projects. The study concluded based on the findings of the research and recommendations for further studies were forwarded to minimize variation orders. Key words: Variation order, cause, impact, public projects, Addis Ababa.

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Keywords

Variation order, Cause, public projects, Addis Ababa, Impact

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