The potential effects of variation orders on institutional building projects

Abstract

Purpose To provide an in‐depth analysis of the potential effects of variations in institutional building projects, which would be helpful for building professionals in assessing and taking proactive measures for reducing the adverse impact of variations. Design/methodology/approach To achieve the study objectives, a questionnaire survey was carried out to collect information on potential effects of variations. Responses from 28 professionals working for a developer organization (a government agency) were analyzed. Furthermore, 26 face‐to‐face interviews using the questionnaires were also analyzed. Findings The results suggest that the most frequent effects of variations were increase in project costs, additional payments for contractor, progress affected but without any delay, completion schedule delay, increase in overhead expenses and rework and demolition. Recommendations were suggested based on the findings of the research and literature review. Research limitations/implications This paper presented only the developers' view of the effects of variation orders on institutional building projects in Singapore. Further works can be extended to survey the consultants and the contractors who have carried out these projects. Practical implications The study will benefit the professionals involved with institutional building projects. The professionals would learn about the downstream effects that may assist in the valuable evaluation of variation orders. Originality/value This is a timely study as the program of rebuilding and improving existing institutional buildings is currently underway in Singapore. A clearer view of the effects of variations on the projects will enable the project team to take advantage of beneficial variations. Furthermore, the findings can be used by future researchers to carry out studies on the management of variation orders in various other types of projects.