The potential effects of variation orders in construction projects

The main purpose of this paper is to provide a comprehensive analysis of the potential effects of variation orders in construction projects in Malaysia, which will be helpful for professionals in the construction industry to assess and take proactive measures to mitigate the adverse impacts of variation. This paper objective was achieved by carrying out a questionnaire survey to collect information on the potential effects of variations. Analysis was done to the 33 responses that were collected from professionals that are working with the developers in Penang. Form the results, the most frequent effects of variations were increase in project cost, additional payment for contractor, increase in overhead expenses, completion schedule delay and rework and demolition. Then, recommendations were suggested based on the findings of this paper and previous researches. This paper only touches on the developers’ view of the effects of variation orders in construction projects. Further researchers on effects of variation can be from the consultants’ and contractor’s view on the effects of variation instead.