Variation Order In Road Construction

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schedule or degree of difficulty in a project, while detrimental variation order is one issued that negatively impacts the client’s value or project performance. They also ranked the effects of variation orders on different project performance factors, which are time overrun, cost overrun, disputes between parties and the contractor, additional specialist equipment/personnel, complaints of parties to the contract, quality standard enhanced, degradation of quality standards, optimum cost reduction, degradation of health and safety, and time reduction. The factor that ranked first is time overrun in his thesis conducted a field survey to identify main causes of variation orders, their effects on projects, and the control procedures suggested…show more content…
The client spends more than what initially estimated in the most cases. Sometimes, disputes and unexpected delays occur because of change orders. Their study attempted to determine the possible causes of variation orders in the road construction projects in Sri Lanka. They collected data based on literature review, and studied a case study included 11 road construction projects through a questionnaire filled by professionals in the road construction industry in Sri Lanka. The study found out that the causes in the local context differ from those in the international context. According to the questionnaire survey, unrealistic estimation of time was the most significant cause of variation orders. Differing site conditions, political pressure during construction phase, poor investigation, and client-originated variations were the most significant causes, the results further proven through the case study…show more content…
The model is proposed according to data collected from Florida DOT projects with ranking contract values that lies between $10–$25 million. Eleven variables were analyzed to test their effect on the cost of the change orders. The study concluded that most significant variables that impact the value of the change order, which are (1) the time of occurring of the change order and (2) when the reason behind the change order is caused by unforeseen conditions. Two regression models are done and evaluated as follows: (1) a model to determine the percentage increase in the contract price due to the change orders that increase the contract price from 0.01 to 5% and (2) a model to determine the percentage increase in the contract price due to the change orders that increase the contract price from 5 to 15%. Those models will give the owner with a forward pricing of the change orders, and hence, allow the owner to determine contingency

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