Variation order process for renovation of a single-storey house at Balok / Nur Zuhairah Syazwani Shaifullizam

Variation Order (VO) is a normal issue in building projects. It requires amending the initial scope of work as specified in the contract. VO is caused by a variety of reasons. As a result, there were cost overruns, delays, and even contract disputes amongst parties. This research was conducted at Balok since it was one of the new projects that needed to be handled. The purpose of this study was to identify the method of variation order process, the time and cost of variation order applied, and to determine the root causes of variation and the impacts of variations on Balok projects. Data collection involved in the survey with an observation and unstructured interviews that happened when site visited. Also, document reviews of the project consisting of variation orders are made and identified. Significant VO factors affecting time performance, according to the study, include schedule changes, scope changes, design modifications, finance challenges, and a lack of strategic planning. A change in schedule, a financial issue, insufficient working drawing information, a change in specification, and financial challenges were all significant variables influencing cost performance. It is proposed that good financial management and thorough design might help reduce variation orders and hence improve project performance.