The impact of variation order on construction project: performance, cost and time

Abstract

Construction projects are a very demanding initiative and have an intense necessity for effective planning and organization as well as excellent management. One of the factors that affects the overall effectiveness of construction projects is variation orders. The purpose of this study is to reach some conclusions about the variables that affect the complexity of variation orders as well as to conclude how these orders affect overrun cost of the project. The study initiates by establishing a theoretical framework elucidating the primary factors associated with the low efficiency of projects in the construction projects. It also offers a summary on different variation orders and their effects on the overall project. Furthermore, descriptive statistics and the regression method focus on uncovering the relationships of different factors. The results revealed that the complexity of the variation orders had no impact on cost overruns, but the duration was a factor that affected the final costs. On the other hand,the results unveiled that the size of the project was a factor related to the complexity of the variation orders. The main conclusion of this study is the emphasis on the fact that the effectiveness of projects also depends on the management of changes during all phases of its implementation. The recommendations presented at the end of the study provide a simple and understandable framework for how change can be managed most effectively to ensure the success of construction projects.