Variation Orders in Construction Projects

Abstract

Construction projects are complex long-term projects with dynamic nature. They bring together multiple parties within different disciplines and require them to work coherently in a designated area to construct a structure with a constrained budget within a specified time. Since most of these projects are big and complex, it is high likely that they are not completed in terms of design, procurement, contracting before the start of the construction. Therefore, the changes along the way are inevitable.

Although the ultimate goal during the planning phase would be to minimize the changes and unexpected situations, it is almost impossible to plan a construction project without subjecting it to change during the construction phase. While these changes may stem from so many different reasons like material quality, change in design, time considerations, etc. they can be minimized as much as possible with careful planning and execution.

Any deviation from the work scope agreed in the contract is considered as a variation in a project. A variation order is a formal document issued either by the contractor or the client for these changes mentioned.

By keeping in mind that variations will be needed at some point of the project, these possible changes must be foreseen before the start of the construction phase. To be able to protect the project from the unwanted costs and problems with the contractors, variation order format should be prepared within the planning phase of the construction and later on should be utilized in each variation.