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Variations and Change Orders on Construction Projects

Patrick Keane Owner-Related Variations
Quantity Surveyor in Gallifordtry, Construction Company. U.K. E-mail:
Owner-related variations can emerge due to change of scope,
[email protected]
owner’s financial problems, inadequate project objectives, re-
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placement of materials or procedures, impediment to a prompt

Begum Sertyesilisik, Ph.D. decision-making process, the obstinate nature of the owner, and
Asst. Prof. at Yildiz Technical Univ., Honorary Lecturer at Liverpool change in specifications by the owner. These are briefly explained
John Moores Univ., Yildiz Technical University Department of Civil as follows:
Engineering, Construction Management Division, Davutpasa Campus B • Change of scope: Change of plan or scope of the project is one
Bloc, 34210 Esenler-Istanbul, Turkey. E-mail: B.Sertyesilisik@ljmu. of the most significant causes of variation in construction
ac.uk
projects 共CII 1990b兲, and is usually the result of insufficient
planning at the project definition stage, or because of lack of
Andrew David Ross, Ph.D., MRICS, MCIOB involvement of the owner in the design phase 共Arain et al.
School of the Built Environment, Liverpool John Moores Univ., Cherie 2004兲.
Booth Bld., Byrom St., Liverpool, L3 3AF U.K. E-mail: A.D.Ross@ • Owner’s financial problems: The owner’s financial problems
ljmu.ac.uk can affect project progress and quality 共Clough and Sears
1994; O’Brien 1998兲. This problem can lead to changes in
A variation is any type of deviation from an agreed upon, well- work schedules and specifications, affecting the quality of the
defined scope or schedule of works. A change order is the formal construction.
document that is used to modify the agreed contractual agreement • Inadequate project objectives: Inadequate project objectives
and becomes part of the projects documents 共Fisk 1997; O’Brien can cause variation in construction projects 共Ibbs and Allen
1998兲. Variations are common in all types of construction projects 1995兲, leading to the designer being restricted in designing a
共CII 1994a; Fisk 1997; O’Brien 1998; Ibbs et al. 2001兲. Construc- suitable design that may lead to variations at a later stage of
tion contracts are complex because they involve many human and the construction process.
nonhuman factors and variables. They usually have a long dura- • Replacement of materials or procedures: The replacement of
tion, various uncertainties, and complex relationships among the materials or procedures may lead to variations during the con-
participants. The need to make changes in a construction project struction phase. The substitution of procedures includes varia-
is a matter of practical reality. Even the most thoughtfully planned tions in application methods 共Chappell and Willis 1996兲.
project may necessitate changes due to various factors 共O’Brien • Impediment to prompt decision-making process: Prompt deci-
1998兲. The project team must be able to effectively analyze the sion making is an important factor for project success 共San-
variation and its immediate downstream effects to overcome the vido et al. 1992; Gray and Hughes 2001兲. Failure to efficiently
problems associated with changes to a project 共CII1994b兲. To address decisions may result in delay, causing the need for the
manage a variation means being able to anticipate its effects and change order due to cost increments.
to control, or at least monitor, the associated cost and schedule • Obstinate nature of owner: A building project is the result of
the combined efforts of the professionals involved, who have
impact 共Hester et al. 1991兲. An effective analysis of variations and
to work at the various interfaces of a project 共Wang 2000;
change orders requires a comprehensive understanding of the root
Arain et al. 2004兲. If the owner is obstinate then this could
causes of variations 共Hester et al.1991兲. As O’Brien 共1998兲, CII
cause major variations at the later stages of a project.
共1994b兲, and Hester et al. 共1991兲 reveal, there is need for analysis
• Change in specifications by the owner: Changes in specifica-
on causes and effects of variations. This paper represents an
tion are frequent in construction projects with inadequate
analysis of the most likely causes and effects of variations on
project objectives 共O’Brien 1998兲. Should the owner decide to
construction projects and also makes suggestions on how varia- change the specification of a design or requirement, then this
tions can be avoided or minimized on future projects. may lead to variations in the construction phase.

Causes of Variations and Change Orders Consultant-Related Variations

Consultants can request variations due to changes in design by the
The causes of variations and change orders have been surveyed in consultant, errors or omissions in design, conflicts among contract
the literature. It was observed that these causes could be grouped documents, technology changes, value engineering, lack of coor-
based on the contracting parties. Therefore the causes have been dination, design complexity, inadequate working drawing details,
grouped into three categories for the contracting parties: owner- poor knowledge of available materials and equipment, consult-
related variations, consultant-related variations, and contractor- ant’s lack of required data, ambiguous design details, and changes
related variations. Furthermore, to indicate non-party-related in specification by the consultant. These are briefly explained as
causes, one additional group has been established and named as follows:
“other variations.” • Change in design by the consultant: A change in design for

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J. Leg. Aff. Dispute Resolut. Eng. Constr. 2010.2:89-96.

 improvement by the consultant is a norm in contemporary pro- Contractor-Related Variations
fessional practice 共Arain et al. 2004兲. Changes in design are
frequent in projects where construction starts before the design Contractor-related variations can occur due to lack of involve-
is finalized 共Fisk 1997兲. Such changes can affect the project in ment in design, unavailability of equipment, unavailability of
various ways depending on the timing of the change. skills, contractor financial difficulties, desired profitability, differ-
• Errors and omissions in design: Errors and omissions in design ing site conditions, poor workmanship, unfamiliarity with local
are a significant cause of project delays 共Arain et al. 2004兲. conditions, fast-track construction, poor procurement process,
Dependant upon the timing of the errors in the project, delays lack of communication, long-lead procurement, complex design
and variations may occur. and technology, and lack of strategic planning. These are briefly
• Conflicts among contract documents: Conflict between con- explained as follows:
tract documents can result in misinterpretation of the actual • Lack of involvement in design: Involvement of the contractor
requirement of a project 共CII 1986兲. It is essential that contract in the design may assist in developing better designs by ac-
commodating his creative and practical ideas 共Arain et al.
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documents are clear and precise. Insufficient details in the con-

tract documents may result in delays to the project completion 2004兲. Variations may occur due to the contractor not being
or cause variations in cost. involved in the design stage of a project.
• Technology changes: Changes in technology could potentially • Unavailability of equipment: Unavailability of equipment is a
result in variations on a project. Project planning should be procurement problem that can affect the project completion
flexible for accommodating new beneficial variations 共CII 共O’Brien 1998兲.
1994b兲. Emergence of new technology can affect construction • Unavailability of skills: Skilled manpower is one of the major
methods and processes. resources required for technological projects 共Arain et al.
• Value engineering: Value engineering should ideally be carried 2004兲. Variations and delays may occur due to shortages of
out during the design phase 共Dell’Isola 1982兲. Value engineer- skilled labor.
ing carried out during the construction phase can become an • Contractor’s financial difficulties: Construction is a labor-
extremely costly exercise and may result in variations. intensive industry. Whether the contractor has been paid or
• Lack of coordination: A lack of coordination between parties not, the wages of the worker must still be paid 共Thomas and
may cause major variations with adverse impact on the project Napolitan 1995兲. Should a contractor experience financial dif-
共Arain et al. 2004兲, leading to dissatisfaction of the owner, ficulties during the course of a project, variations may result
rework, and variation. and the quality and progress of the project may be severely
• Design complexity: Complex designs require unique skills and affected.
construction methods 共Arain et al. 2004兲. Complexity affects • Desired profitability: Variations may occur due to the desired
the flow of construction activities, whereas simpler and linear profitability of the main contractor carrying out the works.
construction works are relatively easy to handle 共Fisk 1997兲. Variations are considered a common source of additional work
This would suggest that the more complex a construction de- for the contractor 共O’Brien 1998兲. Variations can be seen as
sign is, the more there is a chance that variations may occur. additional financial reward for the contractor.
• Inadequate working drawing details: To convey a complete • Differing site conditions: Differing site conditions may result
concept of the project design, the working drawings must be in variations. For example the soil condition may be different
clear and concise 共Geok 2002兲. Insufficient working drawing than expected by the contractor, or there may be unforeseen
details can result in misinterpretation of the actual require- problems at substructure construction that could not be picked
ments for the project 共Arain et al. 2004兲, causing variations in up on a site investigation.
the project. • Poor workmanship: Defective workmanship may lead to
• Poor knowledge of available materials and equipment: Knowl- demolition and rework in construction projects 共Fisk 1997;
edge of available materials and equipment is an important fac- O’Brien 1998兲. This may lead to delay and increased cost.
tor for developing a comprehensive design 共Geok 2002兲. If the • Unfamiliarity with local conditions: Familiarity with local
consultant has a poor knowledge of available materials or conditions is an important factor for the successful completion
equipment that can be used in the construction process, varia- of a construction project 共Clough and Sears 1994兲. Should the
tions are more likely to occur during the construction phase. contractor not be familiar with local conditions, it would be
• Consultants’ lack of required data: A lack of data can result in more difficult to carry out the work, possibly leading to varia-
misinterpretation of the actual requirements of a project 共Arain tions and delays to the completion of the project.
2002兲. If there is not enough data available to the consultants • Fast-track construction: Fast-track construction requires an or-
then the design is based more on the consultants’ own percep- ganized system to concurrently carry out independent project
tion of the requirements of the project. Should these percep- activities 共Fisk 1997兲. Should this organized system not be in
tions be wrong, then variations will occur. place during a fast-track construction process, there is a higher
• Ambiguous design details: A clearer design tends to be com- risk of variations to the project occurring.
prehended more readily 共O’Brien 1998兲. Ambiguity in design • Poor procurement process: Procurement delays have various
may cause misinterpretations and the need for rework leading adverse effects on other processes in the construction cycle
to delay and increased cost. 共Fisk 1997兲. Should other processes in the construction cycle
• Inadequate design: Inadequate design can be a frequent cause be affected by poor procurement processes, variations may
of variations in construction projects 共CII 1990a; Fisk 1997兲. result.
• Change in specification by the consultant: Changes in specifi- • Lack of communication: A lack of coordination and commu-
cation are frequent in construction projects with inadequate nication between parties may cause major variations that could
project objectives 共O’Brien 1998兲. Changes in specification eventually impact the project adversely 共Arain et al. 2004兲,
may result in variations to the project, leading to delay and causing demolition and rework affecting work progress.
increased overall cost. • Long-lead procurement: Procurement delays have various ad-

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 Table 1. Causes of Variations
Owner-related variations Consultant-related variations Contractor-related variations Other variations
Change of plans or scope 共CII Change in design 共Arain et al. Lack of involvement in design Weather conditions 共Fisk 1997;
1990b兲 2004; Fisk 1997兲 共Arain et al. 2004兲 O’Brien 1998兲
Insufficient planning at the project Errors and omissions 共Arain et al. Unavailability of equipment Safety considerations 共Clough and
definition stage, or lack of 2004兲 共O’Brien 1998兲 Sears 1994兲
involvement of the owner in the
design phase 共Arain et al. 2004兲
Owners’ financial problems Conflicts among contract Skills shortage 共Arain et al. 2004兲 Change in economic conditions
共Clough and Sears 1994; O’Brien documents 共CII 1986兲 共Fisk 1997兲
1998兲
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Inadequate project objectives 共Ibbs Technology change 共CII 1994b兲 Financial problems 共Thomas and Sociocultural factors 共O’Brien
and Allen 1995兲 Napolitan 1995兲 1998兲
Replacement of materials/ Value engineering 共Dell’Isola Desired profitability 共O’Brien Unforeseen problems 共Clough and
procedures 共Chappell and Willis 1982兲 1998兲; Sears 1994; O’Brien 1998兲
1996兲
Impediment of prompt Poor coordination 共Arain et al. Differing site conditions; poor
decision-making process 共Sanvido 2004兲 workmanship 共Fisk 1997;
et al. 1997; Gray and Hughes O’Brien 1998兲
2001兲
Obstinate nature of owner 共Wang Design complexity 共Arain et al. Fast-track construction 共Fisk
2000; Arain et al. 2004兲 2004; Fisk 1997兲 1997兲
Change in specifications by owner Poor working drawing details Poor procurement process 共Fisk
共O’Brien 1998兲 共Geok 2002; Arain et al. 2004兲 1997兲
Poor knowledge of available Lack of communication 共Arain et
materials 共Geok 2002兲 al. 2004兲
Lack of required data 共Arain Lack of experience
2002兲
Ambiguous design details Long-lead procurement 共Fisk
共O’Brien 1998兲 1997兲
Poor design 共CII 1990a; Fisk Complex design and technology
1997兲 共Arain 2002兲
Change in specifications 共O’Brien Lack of strategic planning
1998兲 共Clough and Sears 1994兲

verse effects on other processes in the construction cycle 共Fisk 1998兲. Should the weather have an adverse effect and cause
1997兲. The contractor may need to accelerate the construction delays in the construction process, variations may occur to
to catch up with the deadline specified in the contract. This can compensate delays and extra costs in the work.
be a reason for variation due to the increased cost and addi- • Health and safety: Safety is an important factor for the suc-
tional workmanship. cessful completion of a building project 共Clough and Sears
• Complex design and technology: Complex design and technol- 1994兲. Noncompliance with safety regulations may result in
ogy require detailed interpretations by the designer to make it variations in the design aspects of a project.
comprehensible for the contractor 共Arain 2002兲. Complex de- • Change in economic conditions: Economic conditions are one
signs may hinder the flow of the construction processes, lead- of the influential factors that may affect a construction project
ing to variations and delays in the project completion. 共Fisk 1997兲. Should the economic climate change during a
• Lack of strategic planning: Proper strategic planning is an im-
construction project, variations may occur to reduce the con-
portant factor for successful completion of a building project
struction cost.
共Clough and Sears 1994兲. The lack of strategic planning is a
• Sociocultural factors: Lack of coordination is often between
common cause of variations in projects where construction
starts before the design is finalized 共e.g., in concurrent design professionals with different sociocultural backgrounds
and construction contracts兲 共O’Brien 1998兲. 共O’Brien 1998兲. Variations may occur as a result of this and
changes may be required to the project team.
• Unforeseen problems: Unforeseen conditions are usually faced
Other Variations by professionals in the construction industry 共Clough and
Causes of variations not directly related to participants in con- Sears 1994; O’Brien 1998兲. These conditions, if not resolved,
struction projects include weather conditions, health and safety, may result in variations to the project.
change in economic conditions, sociocultural factors, and unfore- The main and subcauses of variations are summarized in Table
seen problems. These are briefly explained as follows: 1.
• Weather conditions: Adverse weather conditions can affect Analysis of owner-related variations reveal that the owner
outside activities in construction projects 共Fisk 1997; O’Brien should take adequate consultancy services and arrange financial

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 Table 2. Effects of Variations
Effects of variations and change orders Cost-related effects - Increase in overhead expenses 共O’Brien 1998兲
- Additional payment for contractor 共O’Brien 1998兲
- Rework and demolition 共Clough and Sears 1994; CII 1990a兲
Quality-related effects - Quality degradation 共CII 1994a; Fisk 1997兲
Time-related effects - Delay in payment 共CII 1990a兲
- Procurement delay 共O’Brien 1998兲
- Rework and demolition 共Clough and Sears 1994; CII 1990a兲
- Logistic delay 共Fisk 1997兲
- Completion schedule delay 共Ibbs 1997兲
Organization and its reputation-related effects - Tarnish firm’s reputation 共Fisk 1997兲
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- Poor safety conditions 共O’Brien 1998兲

- Poor professional relations 共Fisk 1997兲
- Dispute among professionals 共Fisk 1997兲
Other effects - Progress affected without delay 共CII 1994a兲

resources in the contract preparation phase. Furthermore, the ap- • Organization-related effects: The disputes over change orders
proach of the owner to the project and other contracting parties and claims are inevitable and the variation clauses are often
has influence on the emergence of variations. Analysis of the source of project disputes 共CII 1986兲. Construction
consultant- and contractor-related causes reveals the importance changes are a major source of construction dispute 共Fisk
of their qualification and experience. Other variations that are not 1997兲. Variations could eventually affect professional relations
under control of the contracting parties should be taken into con- on a construction project, leading to disputes and further delay.
sideration as risk factors in contract preparation phase. Claims and disputes can have a severe effect on a company’s
overall reputation, and may also make professional disputes
more likely to occur. Variations may affect the safety condi-
Effects of Variations and Change Orders tions in construction projects 共O’Brien 1998兲. Variations may
require additional safety methods and precautions. Accelera-
Based on the literature survey findings, the effects of variations tion of the work may cause poor safety conditions, increasing
and change orders can be grouped under five categories: cost, accident rates. Furthermore, delay in accomplishment of con-
quality, time, organization-related effects, and other effects. struction, failure in meeting quality requirements, and in-
• Cost-related effects: Rework and demolition are frequent oc- creased accident rates can tarnish a firm’s reputation,
currences due to variations in construction projects 共Clough deteriorating professional relations and causing disputes
and Sears 1994; CII 1990a兲. Delay in payment can occur 共CII among professionals.
1990a兲, leading to an increase in project cost due to interest • Other effects: Variations can affect the progress without caus-
rates. Variations require processing procedures, paperwork, ing delay 共CII 1994a兲. Adverse time-related effects of varia-
and reviews before they can be implemented 共O’Brien 1998兲, tions can be compensated with the help of floats on
leading to increased overhead expenses. Additional payments construction activities and acceleration of work progress.
for the contractor can be a potential effect of variations on a The effects of variations are summarized in Table 2.
construction project. Variations are considered to be a common There is no clear distinction among main effects of variations
source of additional works for the contractor 共O’Brien 1998兲. 共Table 2兲. Sub-effects may be classified under more than one
Rework, demolition, and processing procedures due to varia- main effect. For example, delay in payment 共CII 1990a兲 and re-
tion can result in increased cost, affecting the profitability of work and demolition 共Clough and Sears 1994; CII 1990a兲 can
the contractor. The owner can encounter difficulty in meeting have cost- and time-related effects. On the other hand, sub-effects
additional financial requirements. Furthermore, parties may can influence each other. For example, quality degradation 共CII
not agree on the amount of payment due to fuzziness in the 1994a; Fisk 1997兲 can have an effect on tarnishing firm’s reputa-
contract. tion 共Fisk 1997兲. Analysis of the variation and change orders ef-
• Quality-related effects: Variations during the project may af- fects reveals the importance of the construction execution phase,
fect quality 共CII 1994a兲. Variations, if frequent, may affect the successful project management, and sustainability in parties’ re-
quality of work adversely 共Fisk 1997兲. Variations can affect lationships.
project completion time and may cause accelerated construc-
tion process affecting the quality.
• Time-related effects: Variations that are imposed when con- Research Methods
struction is underway or even completed usually lead to re-
works and delays in project completion 共CII 1990a兲. Variations The aim of this research was to analyze the causes and effects of
during the project may affect the project progress 共CII 1994a兲, change orders in construction projects. To meet this aim, the re-
which may in turn affect payment to subcontractors 共usually search was carried out in three main parts: literature review, case
because the main contractor can’t pay sub contractors until study, and questionnaire.
they have been paid by the owner themselves兲. Completion Following the literature survey, a case study was carried out to
schedule delay is a frequent result of variations in construction analyze variations and change orders occurring in a real-life con-
projects 共Ibbs 1997兲. Logistics delays may occur due to varia- struction project. A healthcare facility in Southport, Northwest
tions requiring new materials and equipment 共Fisk 1997兲. England, was studied with respect to variations, change orders,

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J. Leg. Aff. Dispute Resolut. Eng. Constr. 2010.2:89-96.

 Table 3. Impact of Change Orders
Item Cost Program
Change order 1 Installation of anesthetic gas scavenging system £6,074.26 共$9,054兲 +5 days
Change order 2 Installation of data cabinets £6,965.96 共$10,392兲 Nil
Update room data sheets incl. Nil
Change order 3 Relocation of velopex machine to special stand £1,055.04 共$1,574兲 +3 days
Associated work incl. +3 days

and their effects. This type of facility was selected as it is an architectural, structural, electrical, and mechanical; and unclear
example of a complex building type in design and construction. and imprecise specification. For the efficient operation of the den-
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Variations and change orders were investigated focusing on their tal suites at the Church Street Health Center, the installation of an
causes, impacts, and whether or not they could have been avoided anesthetic gas scavenging system was required so that the dental
or minimized. area of the building could function correctly and safely. This item
Furthermore, a questionnaire survey was carried out to obtain was missing from the original design for the building as a result
professionals’ views and experiences with respect to variations of poor communication between the client and the design team,
and their impacts. For this reason, the survey was sent to a sample and was only brought to the contractor’s attention once construc-
of 100 design professionals, clients, and contractors. Answers tion of the building was underway. Another reason for this error
were obtained from 37 respondents. The questions were designed was that the reviewing process of all the architectural, structural,
to gather data on the respondents’ profiles and causes and effects electrical, and mechanical participants was performed improperly.
of variations and change orders in construction. The questionnaire The specification for the dental area was also unclear and impre-
consists of seven questions 共Appendix 1兲. The first three questions cise as to the exact requirements of the client. As a consequence
aimed at gathering data on the respondents’ background. The of this change order the additional cost to the project was
fourth question helped to identify the most common causes of £6,074.26 共$9,061兲 and the project fell behind program by five
variations and change orders. Instead of listing all causes in the days.
literature as options, the question was asked in an open-ended Change order 2 occurred due to a change to the client’s speci-
manner to enable the respondents to indicate their full opinions fication during the construction phase for a room in the building.
without restrictions. The fifth question was used to try and under- The client’s updated specification for a room indicated the re-
stand the magnitude 共frequency and ratio兲 of variations. The sixth quirement for the installation of data cabinets plus associated ac-
question was another open-ended question to identify respon- cessories, with the additional costs to reflect both the additional
dents’ perceptions on effects of variations and change orders. The work and the updating of the room data sheets to show the addi-
last question gathered professionals’ opinions on how to avoid or tional data cabinets. As a result, the overall project cost increased
minimize variations and change orders. by a further £6,965.96 共$10,390兲. However, there was no impact
on the construction program as the variation was instructed with
sufficient time for the change to be implemented without causing
Data Analysis delay to the construction process. Variation needs to be instructed
with sufficient time for the changes to be implemented without
Data obtained is presented under two subheadings: data obtained causing delay to the construction process.
through case study and data obtained through questionnaire sur- Change order 3 occurred due to a design error and poor com-
vey. munication between all parties involved. This caused need for
rework. In one of the rooms, on the first floor of the building, the
architect’s details show a velopex machine located on top of a
Data Obtained through Case Study
drainer board. However, it was later decided that the velopex
The Church Street Health Center is a building project that was machine was required to sit on a special purpose stand. This in-
completed in December 2007 by Galliford Try North for the Liv- volved the following work to be carried out through a change
erpool and Sefton Health Partnership 共LSHP兲. It is a three-floor order: wall cupboard to be removed; worktop to be cut back to
medical center in Southport, Northwest England. This building make room for special purpose stand and velopex machine; relo-
was built with the intention of bringing comprehensive and ap- cation of cold water feed and drainage, existing services, and wall
propriate healthcare to the local community of Southport. A de- sockets. As a consequence of this change order the overall project
sign and build contract was used for this project. Its contract cost increased by a further £1,055.04 共$1,574兲 and the additional
value was £5.70 million 共$8.5 million兲. During the design process work led to a delay of a further three days in the construction
the architect distributed the design of the building to the different program.
specialty subconsultants. Each subconsultant reviewed the docu- Together these three change orders resulted in an eight-days
ments and then produced their own conceptual design, and re- delay and in a project cost increase by £14,095.26 共$21,027兲
sponded accordingly with a list of modifications to fit their own 共Table 3兲.
design requirements. These responses were done through regular
design team meeting and by telephone, fax, and e-mail. Despite
Data Obtained through Questionnaire Survey
this, during the construction of the healthcare facility there were
three change orders. The majority of the respondents who answered the survey worked
Change order 1 was initiated due to lack of coordination be- for contractors. Of these respondents, 23 were project managers,
tween the client and the design team; improper performance of five held positions as design managers, six quantity surveyors
the reviewing process of all the relevant participants, including responded, and the remaining three respondents were architects.

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 Table 4. Most Common Causes of Variations on Construction Projects the causes in the literature survey, they were in harmony. Causes
Causes of Variations Percentage of variations in the case study were lack of coordination between
Inadequate project objectives 16
the client and the design team; improper performance of the re-
viewing process of all the relevant participants with respect to
Errors and omissions 40
architectural, structural, electrical, and mechanical aspects; un-
Conflicts between contract documents 11
clear and imprecise specification; change to the client’s specifica-
Poor design 14
tions during the construction phase; and design error and poor
Little involvement in design from contractor 19
communication between all parties involved. This reveals that the
case study supported causes of variations in literature survey with
respect to errors and omissions 共Arain et al. 2004兲; ambiguous
More than half 共57%兲 of the respondents said they had design details 共O’Brien 1998兲; poor design 共CII 1990a; Fisk
10 to 15 years experience in the construction industry, 19% said 1997兲; change in specifications by owner 共O’Brien 1998兲; poor
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they had between 5 and 10 years experience, while 16% had be- coordination 共Arain et al. 2004兲; and poor working drawing de-
tween 15 and 20 experience. Only 5% of the respondents claimed tails 共Geok 2002; Arain et al. 2004兲. Furthermore, “unclear and
to have less than 5 years experience in the construction industry. imprecise specification,” which was identified as a cause of varia-
The majority of the respondents were involved in mainly resi- tion in the case study, has not been identified in the literature
dential 共11 out of 37 respondents兲 and commercial building survey. The questionnaire survey findings were in harmony with
projects 共14 out of 37 respondents兲, with a smaller number in- the case study, as design errors and omissions, little involvement
volved in healthcare 共5 out of 37 respondents兲 and school projects in design from contractor poor design, inadequate project objec-
共3 out of 37 respondents兲. Four respondents did not specify what tives, and conflicts between contract documents were all high-
type of projects they were involved with. The respondents were lighted by respondents. This reveals that the questionnaire survey
asked to specify what they thought was the most common cause supported the causes of variations in the literature survey with
of variations and change orders. The results are detailed in Table respect to errors and omissions 共Arain et al. 2004兲; conflicts be-
4. tween contract documents 共CII 1986兲; lack of involvement in de-
The respondents were asked what percentage of the work on sign 共Arain et al. 2004兲; inadequate project objectives 共Ibbs and
their projects was a result of change orders and variations. Nine- Allen 1995兲; poor working drawing details 共Geok 2002兲; ambigu-
teen respondents said that between 0 and 10% of the work was a ous design details 共O’Brien 1998兲; and poor design 共CII 1990a;
direct result of change orders and variations; 11 respondents Fisk 1997兲.
claimed that between 11 and 20% of the work was caused by The literature survey revealed the effects of variations and
change orders and variations; the remaining 7 respondents stated change orders as cost, quality, time, organization and its
that between 21 and 30% of works on their projects resulted from reputation-related effects, and other effects. The findings of the
change orders and variations. no respondents claimed that greater case study supported three of these effects, as the change orders
than 30% of the work on their projects was due to change orders resulted in cost- and time-related effects, and change in progress
and variations. Seventy percent of the respondents encounter without delay 共which can be classified as “other effect”兲. Simi-
change orders in their projects, revealing that variations are larly, the respondents of the questionnaire survey stated cost- and
widely encountered in construction projects and that the contract time-related effects of variations.
preparation phase should be attended to carefully. The respon- Cost-related effects were stated in the literature survey
dents commented that the number of variations or change orders 共O’Brien 1998; Clough and Sears 1994兲. According to the ques-
that occur on a project can be affected as to the type of the tionnaire survey findings, the most common effect of variations
individual project in question. and change orders was increased project cost; this was also the
The respondents were asked to state their view on the most same for each of the change orders that were examined in the case
likely effect of variations and change orders: 78% agreed that an study. Variations and change orders can affect both the project’s
increase in overall project cost was the most likely effect of a final direct and indirect costs. Any alteration dependant upon
change order or variation, while the remaining 22% believed that what stage the project is at may eventually increase the project
change orders and variations are more likely to delay the project cost. It is the norm on most projects to keep a contingency sum to
completion. The respondents commented further, stating that cover possible variations or change orders, as this helps keep the
delay to completion of the project is also very likely along with overall project cost intact. Frequent variations, however, would
additional payment to the contractor being another common ef- soon see this contingency sum overrun, therefore increasing the
fect. overall final project cost.
The survey also asked the respondents to give their thoughts Time-related effects were stated in the literature survey 共CII
on how variations can be avoided or minimized on future 1990a; O’Brien 1998; Clough and Sears 1994; Fisk 1997; Ibbs
projects. Respondents emphasized the need for a more thorough 1997兲. The questionnaire survey respondents highlighted delay to
detail of design before construction work commences on site, the construction program as another effect of variations and change
main contractor’s involvement at the design stage of the project, orders. This will usually occur when variations are instructed after
and clearer specifications and project briefs. the construction phase of a project has begun. Delay to the con-
struction program as a result of variations is usually because re-
work is required. Any additions or alterations to the design during
Discussion the construction phase are more than likely going to delay the
overall project completion date, as any rework may affect subse-
According to the literature survey, the causes of variations and quent construction activities on site. The suggestion is that the
change orders were grouped as owner-, contractor-, and impact of a variation during the construction phase is much more
consultant-related changes, as well as other variations. Although severe than the impact of a variation during the design phase.
case study and questionnaire survey findings did not cover all of Progress is affected without delay was stated by CII 共1994a兲

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J. Leg. Aff. Dispute Resolut. Eng. Constr. 2010.2:89-96.

 and it was classified under “other effects.” As can be seen from Conclusion and Recommendations
change order 2 in the case study, progress can be affected as the
result of a variation or change order, but without any overall delay According to the literature review, causes of variation and change
to the project completion date. This is usually because the profes- orders were grouped as owner-related variations; consultant-
sional team on the project strives to keep the construction pro- related variations; contractor-related variations; and other varia-
gram on target to its original contract completion date, mainly tions. Both the case study and questionnaire survey supported the
because time has an equivalent monetary value. The contractor following causes of variations stated in the literature: errors and
will usually have some float in their construction program to ac- omissions 共Arain et al. 2004兲; ambiguous design details 共O’Brien
commodate any unforeseen work or to accommodate variations 1998兲; poor design 共CII 1990a; Fisk 1997兲; and poor working
共this is how progress can be affected without any delay to the drawing details 共Geok 2002; Arain et al. 2004兲. The case study
overall project completion date兲. also supported causes of variations in the literature survey with
Quality degradation 共CII 1994a; Fisk 1997兲 and organization respect to change in specifications by owner 共O’Brien 1998兲 and
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poor coordination 共Arain et al. 2004兲. Furthermore, “unclear and

and its reputation-related effects 共O’Brien 1998; Fisk 1997兲 of the
imprecise specification” was identified as a cause of variation in
variations did not appear in the case study and questionnaire sur-
the case study that has not been identified in the literature. Addi-
vey.
tionally, the questionnaire survey findings supported the follow-
The questionnaire survey revealed that emergence of varia-
ing causes of variations in the literature survey: conflicts between
tions and change orders can be minimized through the contrac-
contract documents 共CII 1986兲; lack of involvement in design
tor’s involvement at the design stage and with a clear and
共Arain et al. 2004兲; and inadequate project objectives 共Ibbs and
thorough project brief. The involvement of the contractor can help Allen 1995兲. According to the literature review, the main effects
in clarifying the project objectives and identifying possible con- of variations on construction projects are cost, quality, time, or-
struction issues at an early stage. In this way, all parties involved ganization and its reputation-related effects, and other effects.
in a particular project can have the opportunity to understand Both the case study and questionnaire survey supported cost- and
fully the actual requirements and design. Furthermore, causes of time-related effects of variations. Furthermore, change in progress
variations identified in the research reveal the importance of con- without delay, classified as “other effect,” was observed in the
tract preparation and execution phases in minimizing the emer- case study.
gence of variation-related claims and disputes. As it is common Variations can be avoided or minimized through successful
that variations occur, contracts should cover detailed variation contract preparation and execution phases, successful project
clauses, including payment- and time-related issues. Owners management, and sustainability in the parties’ relationships. The
should appoint an experienced contractor. In the contract- owner should take advantage of adequate consultancy services
execution phase, effective project management is needed in deal- and arrange financial resources in the contract preparation phase.
ing with variations so that the adverse effects can be minimized Furthermore, he or she should appoint a qualified and experienced
and precautions can be taken. Lessons must also be learned from contractor and consultant. Emergence of variations and change
variations on previous projects to help avoid or minimize varia- orders can also be minimized through the contractor’s involve-
tions and resulting consequences on future projects. ment at the design stage and a clear and thorough project brief.

Appendix. Questionnaire

1. What is your profession?

关 兴 Project manager 关 兴 Design manager 关 兴 Quantity surveyor
关 兴 Architect 关 兴 Other 共please specify兲

2. For how many years have you been working in the construction industry?
关 兴 ⬍5 years 关 兴 between 5 – 10 years 关 兴 between 10– 15 years 关 兴 between 15– 20 years

3. Please specify the types of projects you were involved in.

关 兴 Residential buildings 关 兴 Commercial buildings 关 兴 Healthcare
关 兴 School 关 兴 Other 共please specify兲

4. Please specify the most common causes of variations and change orders.
关 兴 Inadequate project objectives 关 兴 Design errors and omissions
关 兴 Conflicts between contract documents 关 兴 Poor design
关 兴 Lack of contractor’s involvement in design 关 兴 Other 共please specify兲

5. Please specify what percentage of work on your projects is a result of change orders and variations.
关 兴 0⫺10% 关 兴 11⫺20% 关 兴 21⫺30% 关 兴 ⬎30%

5.1. What can influence the number of variations or change orders on a project?
6. What are the most likely effects of variations and change orders?
7. How can be variations and change orders be avoided or minimized?

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J. Leg. Aff. Dispute Resolut. Eng. Constr. 2010.2:89-96.

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