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  • DEPARTMENT OF QUANTITY SURVEYING VARIATION CONTROL AFFECTING CONSTRUCTION WORKS FOR LEMBAGA

    KEMAJUAN TANAH PERSEKUTUAN(FELDA)

    NURUL UYUN BT MOHD YUNUS

    A report project submitted in partial fulfilment of the

    requirements for the award of the degree of Master of Science

    (Construction Management)

    Faculty of Civil Engineering

    University Teknologi Malaysia

    MAY,2007

  • ii

    Final Pr

    ct I declare that this Project Report entitled Variation Control Affecting

    Construction Work For Lembaga Kemajuan Tanah Persekutuan(FELDA) is the

    result of my own research except as cited in the references. This report has not been

    accepted for any degree and is not concurrently submitted in candidature of any

    degree.

    Signature : ..

    Name : Nurul Uyun Bt Mohd Yunus

    Date : ..

    fulfillment

  • iii

    Specially Dedicated To

    My Parents

    My Beloved Mother

    You have done all the best for my live

    Beloved Husband

    Ahmad Fairuz B. Dato Ahmad Shamli

    Thank you for your love and support

    My Children

    Youre the heart of my life

  • iv

    ACKNOWLEDGEMENT

    With high gratitude to Allah S.W.T. who gave me the ideas and physical

    strength in preparing this final project. I wish to express my gratitude to the persons

    and all parties who responded to the survey and also offered their invaluable

    contributions in carrying out this final project.

    First of all, I would like to express my appreciation to my Supervisor for his

    guidance throughout the preparation of this thesis.

    Special thanks to those who agreed to be interviewed, formally and informally,

    because gave me the benefit of their knowledge, views and experience. I would like

    also to extend my sincere and deepest gratitude to all my friends who have helped me

    directly or indirectly.

    Finally, I would like to express my deepest love and appreciation to my family

    especially to my husband for his support. Thank you for all understanding given to me

    when I really need it. I am hoping this thesis will be a reward for all efforts of every

    contributing individual. Thank you.

  • v

    ABSTRACT

    Variation means alteration, change or modification of design, quality

    or quantity of work omission, addition or substitution of the work including

    the alteration of the kind or standard of any of the materials or goods to be

    used in the work, and the removal from site of any work, materials or goods

    which are not in accordance in the contract. The aim is of this study research is

    to covering the initial planning, while works is in progress and until the

    completion of works to minimize the need for variation works right from the

    start . The method of this study involved literature review, interview and based

    on the case study and the analysis by qualitative method. The process of data

    collection involved obtaining primary data from the literature review and the

    secondary data was generated from the case study. From the analysis of this

    study type and factors influence to variation; problem that influence and the

    implication to variation; and the strategy action can be taken to minimize the

    variation were identified. In conclusion, the strategy action that can be taken

    were identified to minimize or control the variation works during planning

    stage until construction stage.

  • vi

    ABSTRAK

    Perubahan kerja didefinasikan sebagai ubahsuai, perubahan rekabentuk,

    pembatalan dari kuantiti atau kualiti kerja, penambahan kerja termasuk perubahan

    terhadap spesifikasi bahan yang digunakan di dalam sesuatu kerja dan juga

    pembatalan kerja ditapak termasuk bahan yang tidak mengikut di dalam kontrak.

    Ianya terdapat di dalam kebanyakan di dalam kerja-kerja bangunan. Tujuan kajian ini

    adalah merangkumi peringkat awal semasa kerja di dalam kemajuan sehingga siap

    kerja untuk mengurangkan perubahan kerja bermula peringkat awal kerja lagi.

    Kaedah yang terlibat di dalam kajian ini adalah merangkumi kajian litaratur,

    temuduga dan juga kajian kes dan dinalisa melalui kaedah kualitatif. Proses

    mengumpulkan data diperolehi dari kajian litaratur dan dari kajian kes. Hasil daripada

    analisis yang dijalankan jenis-jenis perubahan kerja dan faktor-faktor yang

    mempengaruhi perubahan keja telah dikenalpasti; masalah-masalah yang

    mempengaruhi perubahan kerja dan kesan nya; dan akhir sekali tindakan yang boleh

    diambil bagi mengurangkan perubahan kerja juga telah dikenalpasti. Oleh yang

    demikian, kesimpulan dari kajian ini terdapat strategi tindakan boleh dilakukan bagi

    mengurangkan perubahan kerja bermula dari peringkat awal perancangan hingga ke

    peringkat pembinaan.

  • vii

    TABLE OF CONTENTS

    CHAPTER TITLE PAGES

    DECLARATION ii

    DEDICATION iii

    ACKNOWLEDGEMENT iv

    ABSTRACT v

    ABSTRAK vi

    TABLE OF CONTENTS vii

    LIST OF TABLES xii

    LIST OF FIGURES xiii

    LIST OF ABBREVIATIONS xiv

    1 INTRODUCTION

    1.1 Introduction 1

    1.2 Problem Statement 2

    1.3 Aim And The Objective Of Study 3

    1.4 The Scope And Limitation of Study 3

    1.5 Research Methodology 4

    1.6 Summary 6

    2 TYPES AND FACTORS INFLUENCE

    VARIATION ORDER

    2.1 Intoduction 7

    2.2 Definition 7

    2.3 Types Of Variation 9

    2.3.1 Identity of the Initiator 10

  • viii

    2.3.2 Nature of the Variation 10

    2.3.3 Consequences/ Effect of Variation 11

    2.4 Factors Influencing The Variation 11

    2.4.1 Site Condition 12

    2.4.2 Design 12

    2.4.3 Client Requirement 13

    2.4.4 Changes Of End Users Management 13

    2.4.5 Discrepancies Between The Works And 14

    Statutory Requirement

    2.4.6 Poor Management 14

    2.4.7 Requested By The Contractor 15

    2.5 Summary 15

    3 PROBLEMS AND IMPLICATION

    OF VARIATION ORDER

    3.1 Introduction 17

    3.2 Development Outlines Invovle in 17

    Pre-Contract Stage

    3.2.1 Inception Stage 18

    3.2.2 Feasibility Study 19

    3.2.3 Outline Proposal 20

    3.2.4 Scheme Design 21

    3.2.5 Detail Design 21

    3.2.6 Production Information 22

    3.2.7 Bills Of Quantities 22

    3.2.8 Tender Action 23

    3.3 The Problems in Variation 24

    3.3.1 Determining the rates to be used 24

    3.3.2 Issuing instruction by S.O 25

    3.3.3 Determining the quantities in variation 25

    3.3.4 Design Changes 26

    3.3.5 Communication 26

  • ix

    3.3.6 Client 27

    3.3.7 Consultant 27

    3.3.8 Contractor 28

    3.4 The Implications of Variations 28

    3.4.1 Delays 28

    3.4.2 Cost 29

    3.4.2.1 The additional expenses 29

    3.4.2.2 Financial charges and interest 30

    3.4.2.3 Cost of site overheads 30

    3.4.3 Quality of Works 30

    3.4.4 Works Programmed and Activities 31

    3.4.5 Inconveniences 31

    3.4.6 Unsatisfied 32

    3.5 Summary 32

    4 STRATEGY ACTION ON MINIMIZING

    VARIATION ORDER

    4.1 Introduction 33

    4.2 Pre Contracr stage 33

    4.2.1 Clear and Thorough Project Brief 34

    4.2.2 Detailing Of Design 34

    4.2.3 Adequate Time in Preparation of Documentation 35

    4.2.4 Management Procurement Strategy 35

    4.2.5 Detail and Adequate Investigation 36

    4.2.6 Provision of Complete Documentation 36

    4.3 Pre Construction Stage 37

    4.3.1 Contractors Efficiency 37

    4.3.2 Keeping Systematic Site Record 37

    4.3.3 Daily Check 38

    4.3.4 Fully Inspection 38

    4.3.5 Comply With All Requirement 38 4.4 Summary 39

  • x

    5 RESEARCH METHODOLOGY

    5.1 Introduction 40

    5.2 Stage 1 : Literature Review 41

    5.3 Stage 2 : Interview and Case Study 42

    5.4 Stage 3 : Recommendation 43

    5.5 Summary 43

    6 DATA AND ANALYSIS

    6.1 Introduction 44

    6.2 Case Study 1 45

    6.3 Case Study 2 50

    6.4 Case Study 3 55

    6.5 Result and Analysis 60

    6.6 Findings and discussion 66

    6.7 Summary 75

    7 CONCLUSION AND RECOMMENDATION

    7.1 Introduction 76

    7.2 Conclusion 76

    7.3 Recommendation 82

    REFERENCES 83

  • xi

    LIST OF TABLES

    TABLE TITLE PAGE

    6.1 List of variation works for case study 1 46

    6.2 List of variation works for case study 2 51

    6.3 List of variation works for case study 3 56

    6.4 Types of variations 60

    6.5 Factors that influence to the variations 61

    6.6 Problem that influence to variations 62

    6.7 The implication of variation Cost Overrun 63

    6.8 The implication of variation Delay 64

    6.9 Strategy action can be taken to minimise or control variation 66

    6.10 The factors that influence the variations(%) 68

    6.11 Cost Overrun for Case Study 1 71

    6.12 Cost Overrun for Case Study 2 71

    6.13 Cost Overrun for Case Study 3 72

    6.14 Delay 72

  • xii

    LIST OF FIGURES

    FIGURE TITLE PAGE

    1.1 The Methodology Flow Chart 5

    3.1 Development Outline at Pre-Contract Stage 18

    6.1 Percentage factors that influence to variations 61

    6.2 Percentage the implication of variation Cost Overrun 64

    6.3 The implication of variation Delay 65

  • xiii

    LIST OF ABBREVIATIONS

    S.O - Superintending Officer

    PWD 203 (10/83) - Standard Form of Contract to be used where Bills of

    Quantities Form Part of the Contract (Revised 10/83)

    IEM.CE 1/89 - Standard Form of Contract to be used where Bills of

    Quantities Form Part of the Contract of Civil

    Engineering Construction

    V.O - Variation Order

    BQ - Bills of Quantities

    M & E - Mechanical and Electrical

    TNB - Tenaga Nasional Berhad

    JBA - Jabatan Bekalan Air

    JKR - Jabatan Kerja Raya

  • CHAPTER 1

    INTRODUCTION

    1.1 Introduction

    Today, small projects can be just as important if not more important than the

    larger projects. When unforeseen situations occur on site, it is important to first

    understand the situation and come up with suitable solutions and forecasts the

    probable consequences. One of the occurrences that make projects less profitable is

    the variation in the original works, leading to re-planning of the ongoing work. As

    clients are always known for their tall demands, they sometimes change their minds

    by varying the works while in progress. Changes are usually the major factors causing

    the delay on projects. The impact due to changes has been described as the adverse

    effect upon the unchanged work due to changes in the contract.

    Even though there are provisions on variation orders in a building contract, the

    variations works sometimes did not satisfy both of parties who felt disappointed to

    carry on the works. It will give impact on the cost of the project extend the

    completion period and it will bring inconveniences to all the parties involved in

    construction industry, which are client, consultants and also contractor. Besides that it

    also brings inconvenience for the end user. No matter how much effort to reduce the

  • variation order in construction industry, it still happens and the final accounts

    remained unresolved after the building was occupied.

    These variations are directly attributable to matters not being as stated or as

    required in the contract documents. This is because circumstances actually change or

    because of misinterpreted in the contract documents. Other than that, it also occurs

    because of clients choice thus will result creating a variation.

    For this, some strategies are needed to anticipate starting from the planning

    stage, so that as the project commences and programmed on site, they will be no

    variations or at least they can be minimized. Therefore, all parties involved should

    cooperate to assure that the efficiency of construction and thus will minimize the

    variation orders in construction industry.

    1.2 Problem Statement

    Many program for development are being carried out rapidly for Lembaga

    Kemajuan Tanah(FELDA) to develop FELDA land. Therefore 5 years back many of

    building and infrastructure works been carried out which awarding the project to the

    experience and class A contractor but the problem of variation work is still occurring

    while construction in progress. Varies order from client and authority requirement

    makes the variations increased easily. Changes in the contract and misinterpreted in

    document contract will caused of additional cost and the impact of this variation and

    will impact on the completion of project.

    Most of the variation occurs when major changesT in the contract during

    construction and additional works. Variation can also occur when unexpected

  • 3

    condition such as climate changes which can causes damages project site as example

    flooded during construction in progress. While unforeseen condition and due to lack

    of supervision and poor in managing and planning the project can also causes of

    variation.

    1.3 Aim and The Objective of Study

    . To achieve the aim, several objectives are defined, they are as follows:-

    1) To identify the types of variation works commonly occur in

    construction projects and the factor influencing these.

    2) To identify the problem that influence to variation and the implication

    of variation to the construction..

    3) To identify the strategy action that can be taken to minimize variations

    starting from planning stage until the construction are being carried

    out.

    1.4 The Scope and Limitation of Study

    The scope of this study is focused Research starts from Pre-Contract practice

    on managing the design development process in construction. Study on the strategy

    action to be taken starting from planning stage until the Post Contract stage and its

    effectiveness in minimize the variations. The area of work of the study focused on the

    building construction works of Lembaga Kemajuan Tanah Persekutuan (FELDA)

    project and also interviews from professionals who are relevant to the topics.

  • 4

    1.5 Research Methodology

    The methodology is essential to enable the compilation of data and

    information from various sources. Thus, it involved three main stages starting from

    collection of data, analysis of data, conclusion and recommendation related to the

    topic. The study can be broadly divided into three stages.

    (i) The first stage include literature review which based on the primary

    data collected through reading and searching from related books,

    magazines, articles, web site and others.

    (ii) The second stage is including interview with relevant professional by

    face to face interview. Analysis of data by using qualitative methods is

    done through the collected reading materials and secondary data

    generated from the case study of FELDAs projects.

    (iii) The final stage of this study is to define the conclusion and

    recommendation with reference to the objective, subsequent to the

    analysis from the case study and interviews.

    The process of research methodology can be summarized as Figure 1.1 below.

    This Figure 1.1 shows the process of research methodology starts from the literature

    review until to the conclusion and recommendation.

  • 5

    First Stage Collection of Information and data from related books, magazines, articles, Internet and others

    Collection of Data

    Literature review

    Case Study Interview

    Analysis of Data (based on qualitative method)

    Second Stage

    Conclusion and Recommendation Third Stage

    Figure 1.1: The Methodology Flow Chart

  • 6

    1.6 Summary

    This study provides some valuable insights in to the relative

    importance of to minimize or control the variation starts from the planning

    stage until the construction stage. The study consists of seven chapters. The

    first chapter is to introduction of the research, which includes the statement

    problem, the aim and objective of the study, the scope and limitation of the

    study, and research methodology. The second chapter is on literature review,

    focus on the identification the types of variation and the factor influence this.;

    Third chapter continue with the literature review on the problem in variation

    and its implication to the construction; Fourth chapter focus on the strategy

    action that can be taken to minimize or to control variation work in the

    construction. The fifth chapter is the research chapter that discusses the

    method of research. The data and analysis is discussed in chapter six and lastly

    the conclusion and recommendation is highlight in chapter seven.

  • CHAPTER 2

    TYPES AND FACTORS INFLUENCE VARIATION ORDER

    2.1 Introduction

    This chapter identifies the types and the factors that influence the variation

    order, establish the definition of variation and classification of variation from the

    literature review. The factors that influence the variation order to be discussed in

    which related from the pre contract stage until construction stage.

    2.2 Definition

    Variation order means the alteration, change or modification of design, quality

    or quantity of work omission, addition or substitution of the work. It is also including

    the alteration of the kind or standard of any of the materials or goods to be used in the

    work, and the removal from site of any work, materials or goods which are not in

    accordance in the contract.

  • 8

    In most form of contract used today for building work provision must be made

    for possible variations. At the same time when tenders are invited the employer and

    his architect and engineer should have crystallized all their ideas into a set of contract

    documents.

    According Standard Form Of Contract (IEM.CE 1/89, clause 23(a)), state that

    the term variation means increase or decrease the quantity of any works include in

    the contract; omit any such work; change the character or quality or kind of any such

    work; change the levels line position and dimensions of any part of the works; execute

    additional works of any kind necessary for the completion of the works.

    While according to Standard Form Of Contract (PWD 203 (10/83), clause

    24(b)), state that the term of variation means the alteration or modification of the

    design, quality or quantity of the works as shown upon the Contract Drawings, Bills

    of Quantities and/or Specification, and includes the addition, omission or substitution

    of any work, the alteration of the kind of standard or any of the materials or goods to

    be used in the works and the removal from the site of any work, materials or good

    executed or brought thereon by the Contractor for the purpose of the works other than

    work, materials or goods which are not in accordance with this Contract.

    Variation can be classified into two categories, which are active variations and

    passive variations (Hj. Hashim Sikan, 2003). Active variations come indirectly as a

    result of the issue of instructions. So much the instruction it become a norm that there

    is no variation without instruction. Instruction here refers to those instructions issued

    by the contract administrator for example Superintending Officers (S.O) instruction

    in the standard form of contract(PWD Form 203A and IEM.CE 1/89).

    Another aspect of variation deals with statutory regulations (clause 11(d)

    PWD Form 203A, and IEM.CE 1/89) requires the contractor to inform the S.O in

    writing of any change or amendment in statutory regulation and bye-laws taking

    effect after the Date of Tender which necessitated any variation to the works and

    apply for and S.Os instruction before the S.O could issue the instruction.

  • 9

    The passive variation could be accepted as those that do not require the

    instructions to be issued directly to the contractor. For example re-measurement and

    valuation of those quantities of the work, which are stated as provisional in the bills

    of quantity. Other than that the variations also comes in the form of the adjustment of

    items having Prime Cost or Provisional Sums in the contract.

    The variation work of these items shall be prepared and agreed by the

    contractor and the client in which to facilitate the finalization of accounts in the

    contract. After the both parties agreed with items and the rates that involve in

    variation works, then it should be prepared in the final account accordingly to the

    Variation Order format.

    2.3 TYPES OF VARIATION

    According to Ir Harbans Singh K.S (2002), generally there are three types of

    variations. The types of variation can be classified according to their criteria, which

    are as list as follows:

    (i) The identity of the initiator.

    (ii) The nature of the variation.

    (iii) The consequences or effect of the variation.

  • 10

    2.3.1 Identity of the initiator

    Classification per identity of initiator is a change made by any one or more

    principal parties. This can be described as employer, contractor, nominated sub-

    contractors, nominated suppliers, and also contract administrator.

    Employer is a person on behalf of the users, future occupants, and etc., while

    the contractor can make change on his own volition or behalf of sub-contractors,

    suppliers, etc. Nominated sub-contractors/ suppliers are in relation to their respective

    sub-contract; and contract administrator; on his own volition, on behalf of the

    employer, the designers, statutory bodies, third parties and etc.

    It is an undeniable fact that the bulk of the variations are initiated by the

    employer. The principal reasons for the employer to initiate variations are changes in

    the employers requirements post contract award, for example owing to a rethinking

    of the needs, change in the nature and use of the anticipated or future utilization of the

    finished works. Besides that, the changes are also in review or reassessment of the

    design by the designers due to issues such as safety, build ability, and correction of

    deficiencies or errors. While the contract administrator with the power is then

    implemented the provision of the contract unless the employer has retained such

    powers under the contract.

    2.3.2 Nature of the variation

    The nature of the variation means changes according to the nature of the work

    itself. This means it not only changes to the work or matters appertaining to the work

    in accordance with the provisions of the contract, but also changes in the contract

  • 11

    condition itself. It is includes addition of the work, omission and also combination of

    both.

    2.3.3 Consequences/ Effect of Variation

    Variations can also be classified by the consequences or effects of the change

    undertaken in labeling it by the financial consideration, or time implication. It is not

    considering the nature of the variation and the initiator. The financial consideration

    involved the monetary for example an adjustment in the Contract Sum, while the time

    implication is the flowing from a particular change being undertaken, (Ir Harbans

    Singh K.S)

    A variation may arise in construction contract in various ways. It arises more

    often during the progress of the work and seldom before the commencement of the

    work, but it will not be allowed at any cost after the practical completion has been

    certified.

    2.4 Factors Influencing the Variation

    There are many factors that influenced the variations. It may come at the pre-

    contract stage and post-contract stage. The factors that influence the variation are due

    to the site condition; any design changes; clients requirement; change of end users;

    discrepancies between the works and statutory requirement; poor management; and

    request by the contractor.

  • 12

    2.4.1 Site Condition

    The real conditions are not shown in the drawings and specifications and

    cannot be determined during preliminary investigation and therefore it is beyond

    expectation. If the Contractor finds any difference in soil condition such as old

    underground structure, hole underground, etc, he must inform to the S.O immediately

    in writing. This enables the S.O to give the appropriate instruction as described in the

    Form of Contract, (clause 8(b) of PWD Form 203A and IEM.CE 1/89). This clause

    provides the S.Os instruction, which is considered to be a variation for unforeseen

    condition, and the Contractor is entitled to claim for the cost incurred and looses.

    2.4.2 Design

    Only when a site is chosen, it will continue with the design stage. In this stage

    the clients brief must be clear. A sophisticated client will already have seen to this

    stage. But a building employer may frequently be dissatisfied with the design of the

    project, and the seriousness of allegation of bad design can range from the little to the

    serious. Design problem may cause structural failure leading to personal injury or

    even loss of life.

    Producing a quality design is highly dependent upon effective coordination

    among the diverse discipline involved in the process. The consequences of most

    design coordination problems are not discovered until during construction, (Tarek

    Hegazy, Essam Zaneldin, Donald Grierson, 2001).

  • 13

    2.4.3 Client Requirement

    A client is an owner of the building. Clients are divided into three categories

    which are some clients have knowledge and experience in construction industry, have

    money but not have experienced in construction field and have money and have a

    little experienced in construction industry. The major factors that influenced the

    instruction of variation made come from the client itself. The clients requirement

    always changes time to time. Usually only when the building has been constructed

    the client gets his sense of desire. The bulk of additional work is occasioned by

    revisions in the requirements of the employer during the course of contract, (Ir

    Harbans Singh K.S (2002)).

    The changes clients requirement will affect the design. For example, an

    employer may require lift for the project thus the design team should redesigned the

    structure in order to fulfill the clients requirement. In this case, whether the

    contractor should be entitled to compensation for loss of profit and loss of

    productivity will depend on the variation work either cause a delay to the project as a

    whole or any rate prevent the optimal deployment of plant and manpower resources

    on the site. Other than that, there are some situations where the Client do not even

    sure about his requirements and will follow the suggestion from the Architect. This

    situation always happens during construction stage and even after construction stage.

    Therefore it is sometimes very difficult to determine or to predict the needs of client

    requirement.

    2.4.4 Changes of End Users Management

    Construction project is lengthy thus a construction project may take one or two

    years time depending on the size of the construction. During that time, the

  • 14

    management of end user may have changed which will subsequently change the

    function and size of a department. In this situation variation is unavoidable.

    2.4.5 Discrepancies Between The Works And Statutory Requirement

    The discrepancies between the works and statutory requirement are one of the

    factors of influenced of instruction of variations. There is a provision in the contract

    that allows the Contractor to make variation to comply with the requirement of the

    law and local authorities. In the case of compliance with a statutory requirement, there

    is the possibility of the S.O securing a waiver and thus reducing the cost, or of a

    measure of re-designing that achieves the same objective, (Turner, 1985)

    2.4.6 Poor Management

    Planning is concerned with only the future. It is obvious that the past becomes

    history with the relentless passage of time. When construct a building, the

    optimistically expect the project to be successful, with the perhaps only one or two

    challenging surprises. It needs for proper planning and management of construction

    can never be over emphasized. But poor management will caused the unsatisfied

    result.

  • 15

    2.4.7 Requested by the Contractor

    It is uncommon for the contractor to request instructions in respect of works

    they wish to vary, (Hibbert, 1986). The variation that requested by the contractor is

    always happen during the construction stage. The reasons why the contractor request

    the variation is include:

    a) The Contractor finds that there is another construction method that is

    more convenient and advantageous to the contracting parties.

    b) Proposing for a more suitable design for material.

    c) The work priced is not practical and therefore applies it to be

    examined.

    From the above, it is necessary for the contractor to request approval in

    writing and propose the variation. The S.Os that approves the variation also must

    give in writing. Then the contractor should execute the variation work as per

    requested and approved by the S.Os.

    2.5 Summary

    There are three types of variation, from the literature research that have

    been made by the author which were identified as identity of the initiator;

    nature of the variation; and consequences/ effect of variation. The initiator was

    identified such as employer, consultants, contractor and etc. The nature of

    variation was identified as omission, addition and combination of both. Lastly

    the consequences/effect of variation was identified as financial consideration

    or time implication.

  • 16

    There are also many factors that influence the variation order, from the

    literature research that have been made by the author. Some of the factor that

    influence the variation order were identified as site condition; client

    requirement; design changes; changes of end users management;

    discrepancies between the works and statutory requirement; poor

    management; and requested by the contractor.

  • CHAPTER 3

    PROBLEMS AND IMPLICATION TO VARIATION ORDER

    3.1 Introduction

    This chapter discusses on the development outline involve in pre-contract

    stage which explained the process of the pre-contract stage in a building project. The

    important of this chapter is discussed on the problems that influence to variation and

    the implication of variation works to the construction.

    3.2 Development Outlines Invovle in Pre-Contract Stage

    Development outlines involve in pre-contract stage based on the RIBA Plan of

    Work which is sequential progression through the stages of design and construction of

    a building project. This development outlines involve in pre-contract which involved

    in eight(8) stages, which are inception; feasibility study; outline proposals; scheme

    design; detail design; production information; bill of quantities; and tender action.

  • 18

    Inception

    Feasibility study

    Outline proposals

    Scheme design

    Detail design

    Production information

    Bills of quantities

    Tender action

    Figure 3.1 : Developm

    This development process c

    development outlines involve in pre

    are described as follows :

    3.2.1 Inception Stage

    The main purpose of the i

    requirements and plan future actio

    ent Outline at Pre-Contract Stage

    an be summarized in the Figure 3.1 above. The

    -contract which involved in eight(8) stages, which

    nception stage is to prepare general outline of

    ns. The difficulties inherent in establishing the

  • 19

    clients brief are often substantial. The main problem is identifying the clients needs

    and then reconciling these against a background of financial, technological and

    legislative constrains, the clients personal requirements, and also a number of design

    variables including structural form, aesthetic and environment, (Ivor H. Seeley, 1982)

    In inception stage, the architect will start his work after the client decides what

    he wants. The architect will require as much information as possible from the client in

    order to avoid variation order in the future. It is important that the client should keep

    well informed of the various decisions as they are made. The basic details need by the

    architect are the nature, size and function of the proposed building, the time and

    financial limits relating to the project, information relating to ownership of the site,

    boundaries, and other related matters, current position with regard to any planning

    application, and other members of the design team to be appointed. The clients

    requirement normally will reflect the design.

    3.2.2 Feasibility Study

    The main objective at this stage is to examine all the technical, functional and

    financial aspects of the project and to advise the client as to its feasibility. The

    feasibility study stage comes after the inception where the general outline of

    requirement has been prepared. Normally the design team will meet and discuss to in

    detail regarding the clients requirements and to make their recommendations thereon

    for submission to the client and established the design brief.

    The feasibility study will take into account a detail survey of the site and any

    adjoining building and capacity of the various services including gas, water,

    electricity, sewers and telephones. Consultation will take place with the Local

  • 20

    Authority and any relevant bodies. Any restriction on the use of the site must be

    investigated and their effect on the proposed development determined.

    The feasibility study normally will be based on the previous project with

    similar uses and similar specification to investigate the requirement and facilities. The

    quantity surveyor will calculate based on the findings and recommendations either the

    proposed development is feasible to build or not.

    The report must effectively assess the overall feasibility of the scheme having

    regard to all relevant factors, so as to give the client all the information he needs to

    make decision whether to proceed with the scheme or not. This report will be

    supported by conceptual designs and estimates of cost.

    3.2.3 Outline Proposal

    At this stage alternative schemes are prepared and compared in order to

    determine the general approach to the layout, design and construction. This involved

    very close collaboration between all members of the design team and the client. At

    this stage all design team plays their important role to make sure the work carried out

    smoothly. The architect will be particularly concerned with functional and aesthetic

    aspect, the structural engineer with different structural forms and the services engineer

    with alternative services layouts. The quantity surveyor will maintain close contact

    with all the other professionals in order to determine the cost implications of the

    alternative proposals as they are prepared.

  • 21

    3.2.4 Scheme Design

    The main purpose at this stage is to critically examine the wider issues of

    appearance, method of construction, outline specification and the preparation of a cost

    plan, showing the proposed distribution of costs over the elements or components of

    the building. All the relevant design information is collated and a detailed report on

    the design and full cost implications can be supplied to the client before the scheme

    design is developed. The cost estimates will be provided by the quantity surveyor,

    desirably incorporating both initial and future cost.

    3.2.5 Detail Design

    At this stage, the design will be in depth with the final decisions being taken in

    respect of all individual components which together make up the complete building.

    All members of the design team also will continue to work very closely together to

    secure an integrated and efficient scheme. The various ideas from the various

    professional will have contributed greatly to the final outcome.

    As the design moves into greater detail and hopefully towards finality, cost

    checks should be carried out to see that particular cost elements are not being

    distorted, or that, if they are, the resulting redistribution within the budget is

    acceptable, and if there are any changes in the design, it will result in abortive work

    and almost certainly in additional cost.

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    3.2.6 Production Information

    At production information process, the architect, engineers and any other

    specialists will now proceed with the preparation of the final drawings and schedules,

    and supporting specifications.

    Besides that, at this stage also to determine the preliminary tendering

    procedures and to prepare a list of potential main contractors, enquiries to sub-

    contractors and suppliers, invitations to tender, and information to tender documents.

    3.2.7 Bills Of Quantities

    At this stage, the bill of quantities and all other tendering documentation are

    finalized. It is important that the drawings, schedules, and specification particulars

    should be checked and steps taken to ensure all the particulars are in correct.

    If there are any discrepancies between the specification and drawings, then the

    query list will submitted to the architect in order to the architects to clarify these

    points and amend the documentation prior to tender stage.

    The bills of quantities are designed primarily as a tendering document, but it

    also provides a valuable aid to the pricing of variations and computation of valuations

    for interim certificates. It provides a good basic for cost planning and help in

    identification of work.

  • 23

    The bills of quantities contain preliminaries, preambles or description of

    material and workmanship, and the measured work. The preliminaries define the

    scope and nature of work; contain details of the contract condition, list of drawings

    and any special instructions to the contractor on pricing. In the bills of quantities also

    will be inserted the Prime Cost Sums and Provisional Sums. Preparation of bills of

    quantities must be in detailed in order to avoid any discrepancies and also variation

    works. One of the causes of variation is the discrepancies in the bills of quantities.

    3.2.8 Tender Action

    Tendering procedures cover the various methods that may be used by the

    client and his advisers to obtain offers. There are some procedures in obtaining the

    tender which are open and selected tendering.

    This open tendering procedure is to advertise through the press, inviting any

    firm that wishes to do so to submit a tender. The advertisement will give outline

    details of the type of work, the programmed and other key features. The open

    tendering provides the longed for opening for some relatively unknown but capable

    firm.

    The selected tendering procedure is to call the selected qualified contractor

    based on the financial background and other features and asking them whether they

    wish to tender. If they do so, they must fill in the document and submit the contract

    document. Selected tenderers normally are approached about one month before the

    tender document is circulated. The purpose of the tender action is to select the suitable

    contractor to carry out the work diligently and competently.

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    3.3 The Problem in Variation

    There are some problems arising when there is a variation work in the

    construction. These problems might sometimes cannot be avoid but it can be managed

    in order to reduce the problems occur in the future. The common problems that occur

    in variation work can be categories as follows:-

    3.3.1 Determining the rates to be used.

    Although in construction contract there is a provision in determining the rates

    when there is a variation work in the contract rate, agreed rate or day work rates, but

    in practice there is a problem in determining which rates are to be used. When there is

    variation work, the quantity surveyor needs to divide the rate to be used in pricing the

    variation work. If the work is similar nature and executed under the similar conditions

    then the contract rate is used. Where the work is not of a similar nature and executed

    under similar conditions in the contract, then the pro-rata rates is used. But if the work

    is totally different from anything contained in the contract, then the agreed rate or day

    work rate will be used. The problem is where the work is totally different with the

    contract, the contractors rate normally high because from that, he can get the profit.

    So it is hard to get the reasonable rate and it takes time to decide and solve this

    problems.

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    3.3.2 Issuing instruction by S.O

    Another problem is issuing of the S.Os instruction sometimes in verbal and

    not confirmed in writing. The condition of contract states, instruction is not valid and

    the contractor has to confirm back with the S.O within the stipulated time in the

    contract. Normally in practice, whether the instruction is in verbal, the contractor still

    carried out the work as instructed by the S.O. The problem is at the end of

    construction, if the contractor carried out the work that instructed by the S.O in

    verbal, the work is not accepted because there is no evidence to proof the work and

    not including in the contract. Hence, the contractor not entitles to claim for the works.

    The S.O has a choice to accept the work or to reject the work. If the S.O chooses to

    accept the work, he may issue the written notice to the contractor for the variation

    works.

    If the S.O chooses to reject the work, the contractor must demolish the work at

    his own cost. To avoid this problem, any instruction issued by the S.O must in

    writing. If there is an instruction in verbal, the contractor must take an action to

    confirm with the S.O and the confirmation must be in writing.

    3.3.3 Determining the quantities in variation

    Besides that, there is also a problem in determining the quantities in the

    variation works especially in Lump Sum Contract based on Drawings and

    Specification. For the lump sum contract, it only required contract document without

    the quantities, specifications and drawings. All the quantities are subject to re-

    measurement. The problems arise in determine the exact quantities in which the client

    may spend the extra cost by using this type of contract. This because, all items in the

    contract to be executed by the contractor which is lump sum is payable. The actual

  • 26

    quantities of the work executed by the contractor which exceed the quantities shown

    against in the contract, therefore it may constitute a variation and the client should pay

    for the work done by the contractor.

    3.3.4 Design Changes

    Problem in bad design of the project always occur especially when there is

    poor communication between the client and the consultant. The client dissatisfied

    with the design made by the designer. For example, the client dissatisfied with the

    layout of the electrical fitting because it can cause the personal injury or even loss of

    life. If this problem occurs, the design must redesign the layout to modify and that is

    costly. Basically these problems will only discover until during construction.

    3.3.5 Communication

    Communication is one of the problems in variations. If the communication

    failed, it will lead the bad performance and could cause variation. Communication is

    important to start from briefing stage until the completion of the work. In variation

    work, the communication problem between the S.O and the contractor is important,

    for example in issuing the instruction. If the contractor not understands the instruction

    and carries out the work then it fails to satisfactory the S.O, the work may accept or

    reject by the S.O. If the S.O rejects the work, then the contractor could rectify the

    works and it is costly to the contractor. This communication can lead the both parties

    feel unsatisfied for the works.

  • 27

    3.3.6 Client

    If there is a variation works, the client must bear the cost incurred in the

    works. In other words, the clients budget has increase because there is a variation

    works especially for the contract based on the bills of quantities. Besides that, if there

    is any variation work and time of the construction has extend, the client loss of the

    profit because late in occupy the building. For example the construction for bungalow

    houses, building should complete at the end of the year as stated in the contract. If

    there is no variation works, the client may be can occupy the building, operate the

    building, and make the profit from the building; but when there are a variation works,

    the client cannot occupy the building and cannot make profit from the building. The

    client bears the loss of the operation of the building.

    3.3.7 Consultant

    If the client request for the variation works, the Architect must produce the

    new design in order to meet the new requirement of the client. Sometimes the

    variation will affect the design, for example effect on the architecture view. It may

    lead the designer feel unhappy because their work has been disturbed by the numbers

    of variation. The quantity surveyor also has a problem when there is a variation work.

    For example, the quantity surveyor should produce the new bills of quantities if the

    new works not similar with the work in the original contract.

  • 28

    3.3.8 Contractor

    The other problem in the variations is on the contractors side. The contractor

    is difficult to claim for extra works or variations especially under the lump sum

    contract. According to Ir. Harbans Singh K.S (2003), it is difficult for the contractor

    to claim an extra/variation works unless the contractor satisfy the onerous burden of

    establishing a clear cut charge in the scope of work as originally contracted for.

    Besides that, when there are a numbers of variations, it may lead the contractor

    feeling unmotivated and this will result in poor quality of works. The contractor also

    faced the problem when there are variation works in the construction, the problem is

    the contractor should reschedule the work program and it will affect the activities in

    site.

    3.4 The Implication Of Variations Order

    Variations in construction industry will lead the impact to all the parties

    involved in this sector. The main implication of variations is in term of time overrun

    and cost.

    3.4.1 Delay

    Delay refers to the time taken in complete the work. There are in fact two

    types of delay, which must be taken into account when valuing the effect of variation.

    (Powell-Smith, 1990).

  • 29

    (i) Delay to a critical path of the work, which will affect the general of the

    work, thus the contractor retaining his general site overheads for the longer

    period.

    (ii) Delays to part of the work that will not affect the overall completion but

    the contractor still retain some particular item of plant on site longer than

    planned.

    (iii) Loss and expense flowing directly from the execution of the varied work.

    Standard Form Of Contract, (PWD Form 203 Rev. 10/83) provides a special

    provision for delay to ensures that if variation instructions are late and cause delay to

    the contractor then the client is entitled to grant of extension of time and enable the

    contractor to claim for loss and expense, thus avoiding putting time at large and

    unable to recover any liquidated and ascertain damages.

    3.4.2 Cost

    Variation also will give the effect in terms of cost. This cost that can be

    identified such as additional expenses; financial charges and interest; and cost of site

    overhead.

    3.4.2.1 The additional expenses, which are:

    a) Transportation expenses the cost arising out of the moving and

    transporting materials and machinery, for example crane that has

    already been used and stores is transferred back to the site for

    additional works.

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    b) Cost of variation works preparation the cost arises when some work

    elements have to be demolished including cost of removing materials

    and rectifying defects.

    c) Other cancellation expenses is the cost of canceling orders. This is

    because the Contractor may have committed for certain charges

    making the order.

    3.4.2.2 Financial charges and interest

    The cost incurred when the contractor wants to extend the project for a certain

    period of time due to massive and complex variation work. It involved a large amount

    of additional capital. Furthermore, the Contractor has to resort financial assistance

    from banks or other financial institutions whereby interests or charges encumbered

    upon the secured loan. (Chow Kok Fong, 1993)

    3.4.2.3 Cost of site overheads

    The cost involved a large amount of additional cost for example the cost of

    supervision, machinery and equipment, site safety and other facilities that are needed

    to pay during extended time.

    3.4.3 Quality of Works

    The quality of the work will be at risk. The question is either the quality of

    works achieves the standard requirement as per contract or not? If there are too many

    instruction changes by the Architect or S.O, it may lead the contractor feeling

  • 31

    unmotivated and afraid for the possibility of changes in completed works and this will

    result in poor quality of work and low productivity of the contractor.

    3.4.4 Works Programmed and Activities

    Reprogramming and restructuring of the disrupted works will have to be done

    which will include demand for additional labour, overtime and additional machinery.

    Loss of productivity occurred where the labour resources must have been available

    and able to be used profitable. Besides that, variation also effect on the plant

    utilization because it will give the additional cost to contractor due to relocation of

    plant on or off site, the need of additional plant, additional tools, alterations of

    scaffolding and also standing time.

    3.4.5 Inconveniences

    Variations will be bring inconveniences to all the parties involved in the

    construction project which are client, contractor and also design team. If there are

    variations, the design team will redo the work and it will cause inconveniences for

    example the Architect will redesign the drawings as the clients requirement while the

    Contractor should pay extra cost for the delay caused by redesigning the work.

  • 32

    3.4.6 Unsatisfied

    Having variations may become unsatisfied or hassle among the parties

    involved in the construction project. For example, for the Client, the possibility of

    increasing budget for that particular project may cause high to restructure financing

    for the project. As for the Contractor, his work program will be disrupted, a new

    construction program needs to be submitted to the client and the relationships with

    relevant suppliers and subcontractors will need to be revised. For the design team, a

    new set of design may need to be submitted to the Client. The whole process of

    redesigning and re-measurement will be time consuming.

    3.5 Summary

    From the literature research, therefore the outline of development in

    construction can be summarized as eight stages which are as follows, inception Stage;

    feasibility study; outline proposals; scheme design; detail design; production

    information; bills of quantities and tender. Problems that occur in variation can be

    identified as determining the rate to be used; issuing instruction by S.Os; determining

    the quantities in variation; design changes; client; consultant; and contractor. The

    implication of variation from the literature research also can be summarized as delay;

    cost; quality of work; work program and activities; inconvenience; and unsatisfied.

  • CHAPTER 4

    STRATEGY ACTION ON MINIMIZING VARIATION ORDER

    4.1 Introduction

    This chapter highlights the strategy action that can be taken in order to

    minimise or controlling the variation during pre-contract stage and post-contract

    stage. This chapter discussed on how the strategy action can be taken during pre-

    contract stage and post-contract in order to minimize variation order occur through

    out in the construction period.

    4.2 Pre-Contract Stgae

    Variations can be avoided if there is prevention at the earlier stage of contract.

    The following are some strategy actions that can be taken in order to minimise the

    variation in pre-contract stage.

  • 34

    4.2.1 Clear and Thorough Project Brief

    Project brief is important at the initial stage because it represent the clients

    needs and the objectives. At the inception stage, the communication is important

    between the client and the design team in order to avoid the poor contract

    performance later. The consultant must totally understand the clients requirement and

    the client should clear their needs so that it will help to reduce the miscommunications

    between the parties. It is also to minimize the changes arise in the future as well as

    variations.

    4.2.2 Detailing Of Design

    The important stage in the pre-contract is detail design because it is contain a

    full design of every part and component of the building by collaboration of all

    concerned. The detail design important normally for contract based on the drawings

    and specifications in order to avoid any dispute and claim arise in future.

    Furthermore, detail design also important in controlling the cost because it

    may affect cost of the future if not well prepared. The design team must work together

    and clear all the clients requirement and needs in order to avoid any changes future.

    Any further change in location, size, shape, or cost after this time will result in

    abortive work.

  • 35

    4.2.3 Adequate Time In Preparation Of Documentation

    During preparation of the tender document, Quantity Surveying will prepare

    provisional item for the certain item that cannot measure accurately before the works

    being carried out. For example piling and plumbing installation. The Quantity

    Surveying need to make any assumption for the items that is not state in the drawing.

    These items are included under the provisional item and will be re-measuring during

    the construction. So, the Quantity Surveyor needs an adequate time in measurement of

    the works and also preparation of documentation. Thus through the detail design and

    adequate time for the Quantity Surveying to prepare the document, the total number

    of variations could be reduced.

    4.2.4 Management Procurement Strategy

    The selection of the management procurement are important in order to ensure

    that the construction is running smooth and less variation occur during construction.

    Basically there are two procurement methods which are mostly used in Malaysia

    construction project are conventional method and design and build method.

    According the conventional method, the detail design can be prepare during the

    design stage.

    The client and designer will discuss together, so that there will be minimal

    changes during the construction stage. Compare to the design and build, all the design

    was prepared by the contractor based on the clients brief. So the possibilities of

    increasing the number of variation works are high. Even though these both methods

    have their own pros and cons, this will depend on the client to select the best method

    which is suitable to apply for the project.

  • 36

    4.2.5 Detail And Adequate Investigation

    The detail in investigation is important even though it costly because it will

    help in the completion of the project within the budget and time specified. It will

    costly at the earlier stage but will reduce the cost at the construction stage.

    If the investigation is not adequate, it will result in additional cost future. This

    is because if the investigation is not done adequately, it will have problems at

    construction stage later when the site turns out to be not good as expected. This will

    involve an additional cost and also involve a variation works in the future. The

    investigation involves are a topographical survey and geotechnical investigation. In

    order to avoid variation works, the investigations must be in detail and adequate. This

    is one good way of reducing the variation claims.

    4.2.6 Provision of Complete Documentation

    In order to minimize the variations, the provision of complete documentation

    must take into consideration before the parties enter into contract. It is important to

    make sure all the information in the document is complete. For example, for the

    contract based on the drawing and specification, the consultants must ensure that the

    document contract must completely attach the entire relevant document. The detail

    specifications are required for the lump sum contract.

  • 37

    4.3 Post Contract Stage

    The common issue arises in the construction and cannot be avoided is a

    variation works. Therefore there are some strategy actions that can be taken at post

    contract stage in order to minimize the variation works in construction.

    4.3.1 Contractors Efficiency

    One of the causes of variation is contractors inefficiency in doing the job. In

    order to minimize the variations, the contractor must carry out the work with

    efficiency as stated in the condition of contract which is carry out the work regularly

    and diligently. Any instruction by the S.Os which related to variation work, the

    contractor must follow the S.Os instruction and if he fails to do so he will be

    considered breach the contract. The contractor shall proceed to carry out the work and

    not be delay and pending in doing the work to grant the extension of time for

    completion the work.

    4.3.2 Keeping Systematic Site Record

    Site record is important as an evidence of the work. If there is a systematic site

    report, the work can be done properly without any disturbance. For example piling

    works, the record must be properly managed in order to avoid problems in future.

    Besides that, piling works is a provisional quantities and subject to re-measurement,

    so it important to keep a systematic record.

  • 38

    4.3.3 Daily Check

    Daily check is one of the actions to control the variation at post contract stage.

    It is important because if there is a daily check on the site, the variation arise from the

    contractors mistake can be reduced. The checking can be done by the S.O or S.Os

    representative. The contractor should give a fully cooperation to them at this stage and

    a good communication is needed.

    4.3.3 Fully Inspection

    Every works by the contractor must be inspected by the S.O or S.Os

    representative. If the work is not inspecting by the S.O, the work may result a

    variation in future. Fully inspection also be done before the construction start and

    after the work completed before issuing the Certificate of Completion. Investigation

    before the construction includes the site investigation and also soil investigation,

    while investigation after work complete is inspection done by the all parties involved

    including Local Authority. This investigation is important to prevent the variations. If

    there is no investigation, it might be changes in work future.

    4.3.4 Comply With All Requirement

    The contractor and the consultants must comply with all Local Authoritys

    requirement. All the works carried out by the contractor must according to the

    specifications by the Local Authority and the contract, for example requirements from

    Fire and Rescue Department, Drainage and Irrigation Department (JPS) and others. It

  • 39

    is important to comply with all requirements in order to control the variation work. If

    the works not follow the requirement, the work might be rectified or demolished and

    must reconstruct according to the specification. This will result variation works.

    4.4 Summary

    From the literature review research above, therefore the strategy action that

    can be taken in order to minimize the variation can be summarized as two categories

    which during pre-contract stage such as clear and thoroughly project brief; detailing

    of design; adequate time in preparation of documentation; management procurement

    Strategy; detail and adequate investigation; and provision of complete documentation.

    While during post contract stage can be summarized as contractors efficiency; daily

    check; fully inspection; and comply with all requirement.

  • CHAPTER 5

    RESEARCH METHODOLOGY

    5.1 Introduction

    The research methodology is essential in guiding the researcher to achieve the

    aim and the objectives of the study. This chapter will describe the methodology

    procedure was to ensure that the information obtained for this study was relevant and

    capable of qualitative evaluation. The necessary data for the analysis could not be

    found from the literature review. Therefore data collection had been carried out.

    The data collection based on the literature review could be collected in several

    ways. Buckley et all (1976) grouped the methodology of data collection under four

    headings; namely opinion research, empirical research, archival research and

    analytical research. Each method has its own strengths and limitations, and none

    could be considered superior that the others. The decision as to which methods to use

    must be based on the survey objectives, the nature of the information required and the

    resources available (Jobber, 1991).

  • 41

    The types of variation and the factors that influence the variation have been

    discussed in the previous chapter which covers the primary input of Variation Order.

    It has completing the objective to study what are the meaning of variation and and

    type of variation that cause of variation order.

    The development outline involve in pre-contract stage which is the sequence

    of progress through the stages of design and construction of a building project and

    problem in variation and the implication of variation identified through various sources

    such as reference book, journal, seminars paper, magazine and other sources by way of

    using internet. The question which need to be clarified is whether the theoretical practice

    and what is practicing by the parties which involve in the construction such as client,

    consultant and the contractor. This phenomenon will be determined through this research.

    5.2 Stage 1 : Literature Review

    There are three sections under the literature review where the first section

    explained and discussed the types of variation and the factors influence the variation

    which begin with the definition of variation order. The second section describe the

    problem in variation order and the implication of variation order. And the third

    section described the strategy action that can be taken to control or minimize the

    variation order in the construction. The source of data is obtained from the reading

    materials and such as books, articles and seminars paper and other published

    information supporting the topic of variation order.

  • 42

    5.3 Stage 2 : Interview and Case Study

    The second stage consists of preparing and collecting of primary data through

    interview session and based on the case study. Generally the data is collected directly

    from the professional parties which are relevant to the topic and also from the

    professional parties whom directly involve in the case study. Analysis of data by

    using qualitative methods is required to determine the factors that influence the

    variation and the strategy action to be taken in order to control or minimize the

    variation start from pre-contract stage until post-contract stage. The case study were

    selected which the development of the project are similar and by using the same

    procurement method which is traditional method. The data collected from the case

    study and interview are gathered and analyzed by using percentage analysis and the

    qualitative method by comparing the three case studies in project background, project

    details and the list of variation occur in final contract in which to identify the major

    factors that influence variation, the problem in variation and the implication that

    related to variation order during pre-contract stage and post contract stage.

    The interviewing session is done to the personnel of the department who

    completely deal with refurbishment project and related case study is taken into

    account to gather facts about the problem related to refurbishment project. Set of

    questions is formulated during the interviewing session to highlight the process of

    refurbishment project as whole. All data will then be analysed and evaluated. The

    differences of refurbishment process by each organization will be summarized into

    table which it would be an effective ways to differentiate the data clearly.

  • 43

    5.4 Stage 3 : Recommendation

    In this stage is the final stage of the research methodology. The final stage of

    this study is to define the conclusion and recommendation with reference to the

    objective, subsequent to the analysis from the case study and interviews.

    5.5 Summary

    For the conclusion, this chapter is discussing about the methods of collecting

    all data and analysis of the result from the interviews and case study. The data is

    analyzed by using qualitative methods to complete the requirement of the research.

  • CHAPTER 6

    DATA ANALYSIS AND RESULT

    6.1 Introduction

    This chapter will look at the some project that involved the variation works.

    There are three (3) case study that have been selected in order to fully understand on

    the factors that influence to variation, the problems that influence to variation and the

    implication of variations work, and also to find out what are the strategy action taken

    in order to control or minimize the variations in the construction.

    All of three case study using the same procurement strategy, which are

    Standard Form of IEM.CE 1/89 and have completed with the final account. The

    completed project with final account has been choose in order to know the amount of

    variation works involved and how far the cost of variation works affected the cost of

    the original contract sum. The three case studies are as follows:

    (i) Case Study 1 : Cadangan Pembangunan Feldajaya Mempaga, Mukim Sabai

    Daerah Bentong, Pahang Darul Makmur.

    (ii) Case Study 2 : Cadangan Pembangunan Feldajaya Serting Negeri Sembilan.

    (iii) Case Study 3 : Cadangan Pembangunan Feldajaya Trolak Perak Darul

    Ridzuan.

  • 45

    6.2 Case Study 1

    The case study 1 which summaries the background of the Project of

    Cadangan Pembangunan Feldajaya Mempaga, Mukim Sabai, Pahang Darul Makmur.

    The parties involved are the client which is Lembaga Kemajuan Tanah

    Persekutuan(FELDA), Felda Engineering Services Sdn. Bhd. as Project Manager and

    Quantity Surveyor, Arup Jururunding Sdn. Bhd. As Structural and M&E Engineer,

    the architecht are W&W Architect and Bauran Bina Sdn. Bhd. as the contractor.

    The contract no of this project is contract 100000445. The original contract

    sum is value at RM 32,747,987.00 and adjustment to Contract Sum

    RM16, 621,218.60 which made the final contract sum to RM 49,369,205.60. The

    contract period for this project is 72 weeks and the date of site possession is on

    9thJune 2003 which the original of completion date on 15th March 2005, but the actual

    completion date is on 30th October 2006 with the defect Liability Period which on

    30thApril 2007.

    List of the variation works as shown in Table 6.1 shows the factor that

    influence to the variation works and also the cost incurred for each variation work.

    For this project, there are forty four (44) variation works involved including

    re-measurement works.

  • Table 6.1 : List of variation works for case study 1

    TOTAL(RM) V.O

    NO

    DESCRIPTION

    FACTORS INFLUENCE V.O ADDITION OMISSION

    1.

    2.

    3.

    4.

    5.

    6.

    7.

    8.

    9.

    VARIATION WORKS

    Outside Drain

    Paip Retikulasi Kumbahan

    Side Drain

    To build Road & Car Porch

    Upgrading laluan masuk utama

    To prepare Road to Water tank

    Kolam takungan

    Changes Jajaran Paip Retikulasi

    Kumbahan

    Planting grass for awaken the slope

    (Behind Bungalow & TNB 3)

    To comply JPS requirement

    To comply JPP requirement

    Site Condition

    To comply JKR requirement

    To comply JKR requirement

    To comply JBA requirement

    To comply JPS requirement

    To comply JPP requirement

    To comply Majlis Daerah requirement

    2,705,545.00

    280,000.00

    294,765.00

    1,889,946.00

    1,062,600.00

    860,000.00

    1,064,000.00

    93,250.00

    1,378,545.00

  • 10.

    11.

    12.

    13.

    14.

    15.

    16.

    17.

    18.

    19.

    20.

    Strengthening Bungalow Structure

    Changes Jubin at Car porch

    Bungalow House

    Dewan Makan Kolej KINI

    Additional Tandas at Academic

    Block Kolej Kini (2 Unit)

    Changes structure building design

    Kolej KINI

    Changes Rumah Kedai

    Changes Building Tadika/Pusat IT.

    Road crossing TNB

    Bungalows main entrance

    Bungalows driveway with crushed

    run & premix.

    Portion of main road with crushed

    run and premix

    Site Condition

    Error in BQ

    Changes on design

    Changes on design

    Changes on design

    Error in BQ

    Error in BQ

    To comply TNB requirement

    To comply TNB requirement

    To comply TNB requirement

    To comply TNB requirement

    50,000.00

    80,000.00

    450,000.00

    240,000.00

    651,260.00

    353,000.00

    148,600.00

    12,348.00

    102,900.00

    55,000.00

    9,000.00

  • 21.

    22.

    23.

    24.

    25.

    26.

    27.

    28

    29.

    30.

    Grouting ( Prelim, Medan selera,

    Bungalow 6B,37C,72A)

    Additional Tingkap pintu, Frosted

    glass (Bungalow A)

    Changes lockset

    Additional Pintu D2 Kitchen

    Bungalow

    Changes Pipe HDPE to MS

    Preliminary Hoarding

    Ancillary Building (TNB, Dewan &

    Pasar)

    Water Reticulation

    Electrical Works (Pasar, Dewan,

    Kolej & Tadika)

    Additional Dewan & Pasar-M&E

    works

    Site condition

    Error in BQ

    Clients request

    Error in BQ

    To comply JBA requirement

    Remesurement

    Remesurement

    Remesurement

    Remesurement

    Remesurement

    347,807.00

    39,000.00

    15,000.00

    24,000.00

    1,303,797.80

    60,000.00

    35,375.00

    146,000.00

    41,000.00

    343,000.00

    107,536.00

    330,783.52

  • 31.

    32.

    33.

    34.

    35.

    36.

    37.

    38.

    39.

    40.

    41.

    42.

    43.

    44.

    Prime Cost ( STP, Meru Tanda,

    Landscape Works, Playground

    Equipment)

    Piling works

    TCT rolform

    R.C concrete sump

    Gutter and Flashing

    Railing

    Box culvert

    Change location of Kilang Bata

    Water proofing (banglow & building)

    Change thk of crusher run

    Additional building- tandas awam

    Change size of surau

    Access car porch

    Perasmian Hari Peneroka

    Clients request

    Site Condition

    Error in BQ

    Error in BQ

    Error in BQ

    Error in BQ

    To comply JKR requirement

    Clients request

    Error in BQ

    To comply JKR requirement

    Clients request

    Clients request

    Clients request

    Clients request

    30,000.00

    959,971.30

    55,800.00

    21,000.00

    150,000.00

    301,000.00

    845,000.00

    18,000.00

    71,000.00

    1,000,000.00

    82,000.00

    280,000.00

    345,000.00

    426,478.00

    Total 18,155,613.10 1,533,694.50

    Net total 16,621,218.60

  • 6.3 Case Study 2

    The case study 2 which summaries the background of the Project of

    Cadangan Pembagunan Fasa 1 Feldajaya Selatan. Mukim Serting Daerah Jempol,

    Negeri Sembilan, Darul Khusus. The parties involved are the client which is Lembaga

    Kemajuan Tanah Persekutuan(FELDA), Felda Engineering Services Sdn. Bhd. as

    Project Manager and Quantity Surveyor, Arup Jururunding Sdn. Bhd. As Structural

    and M&E Engineer, the architect is W&W Architect and Prinseptek Sdn. Bhd. as the

    contractor.

    The contract no of this project is contract 100000464. The original contract

    sum is value at RM 45,000,000.00 and adjustment to Contract Sum RM12,983,300.00

    which made the final contract sum to RM 57,983,300.00. The contract period for this

    project is 72 weeks and the date of site possession is on 23thJune 2003 which the

    original of completion date on 20th December 2004, but the actual completion date is

    on 4th September 2006 with the defect Liability Period which on 4thApril 2008.

    List of the variation works as shown in Table 6.2 shows the factor that

    influence to the variation works and also the cost incurred for each variation work.

    For this project, there are forty seven (47) variation works involved including re-

    measurement works.

  • Table 6.2 : List of variation works for case study 2

    TOTAL(RM) V.O

    NO

    DESCRIPTION

    FACTORS INFLUENCE V.O ADDITION OMISSION

    1.

    2.

    3.

    4.

    5.

    6.

    7.

    8.

    9.

    VARIATION WORKS

    Supply & lay UPVC

    Construction & completion of Mercu Tanda

    Excavation, Backfilling Sand & Crusher runs.

    ( Laluan A1,A2 & A3)

    Road crossing Works ( Laluan B1)

    Road Crossing Works ( Laluan Sesalur

    Telekom)

    Sand & Bricks ( Bungalow A, B, C, D, & E)

    60A 3 Phase Kiosk meter

    Labour, tools & transportation for installation,

    Error in BQ

    Error in BQ

    Error in BQ

    Error in BQ

    Error in BQ

    Error in BQ

    Error in BQ

    222,464.90

    68,000.00

    74,400.00

    90,000.00

    158,000.00

    119,214.00

    57,200.00

  • 10.

    11.

    12.

    13.

    14.

    15.

    16.

    17.

    18.

    19.

    20.

    21.

    22.

    23.

    excavation & other works.

    Additional Pillar Board & Telephone Works

    Relocate TNB & Telephone pit at Hentian Bas

    Block Drains

    Hose Reel Tank & Pump House at Tadika

    Additional for Air (Kolej)

    Main Switch Board (MSB) and Cable

    Slope Trimming & Hydro seeding Works

    Road Crossing for TNB

    Additional for 3 phase at Rumah Kedai

    Paint Road Kerb using emulsion paint type

    weather.

    Banglow House ( A,B,C,D,E)

    Tandas Kolej

    Medan Selera

    Pasar

    Perhentian Bas & Teksi

    Error in BQ

    Error in BQ

    To comply TNB requirement

    To comply JPS requirement

    Error in BQ

    Error in BQ

    Error in BQ

    Error in BQ

    To comply TNB requirement

    Error in BQ

    Error in BQ

    Change in design

    Clients request

    Remesurement

    Change in design

    Change in design

    73,920.00

    59,900.00

    2,000.00

    136,512.00

    67,814.21

    138,980.00

    392,750.00

    81,143.05

    20,477.60

    20,000.00

    54,560.00

    626,287.78

    198,130.80

    27,987.87

    54,926.76

    19,173.35

  • 24.

    25.

    26.

    27.

    28.

    29.

    30.

    31.

    32.

    33.

    34.

    35.

    Tadika/ IT Centre/Library

    Surau

    Kolej Intergrasi Ilmu

    Dewan TCT rolform

    TNB Sub Station ( 44 x 20 & 44 x 18)

    External Works ( Precast Concrete Block Drain,

    Brick wall to Drain/Rubble

    Wall, Box Culverts, Sewerage Pipe, Sewerage

    Manhole & Excavation)

    JPS Upgrading

    Water Reticulation

    Elevated Water Tank & Fencing

    Suction Tank

    Pilling ( Dewan Makan)

    Junction ( Clearing, Drainage, Shoulder, Road

    Marking, Electrical Works)

    S.O instruction, site condition

    Change in design

    Change in design

    Error in BQ

    To comply TNB requirement

    Remesurement

    To comply JPS requirement

    Remesurement

    Remesurement

    Remesurement

    Remesurement

    Remesurement

    61631.89

    158,200.00

    211,038.75

    294,962.19

    225,000.00

    8,342,637.67

    398,064.80

    917,853.90

    599,397.96

    110,000.00

    6,609.00

    763,891.08

  • 36.

    37.

    38.

    39.

    40.

    41.

    42.

    43.

    44.

    45.

    46.

    47.

    Pilling Works

    R.C Piles

    Transport, Handle, Pitch and Drive

    Extension Joints

    Cut-Off Piles

    Load Testing

    Static Load Test

    Subsequent Static Load Test and Drive

    Piling Record

    Mackintosh Probes

    Tandas Hentian Bas

    Dewan Makan Kolej

    Remesurement, Site condition

    Remesurement

    Remesurement

    Remesurement

    Remesurement

    Remesurement

    Remesurement

    Remesurement

    Remesurement

    Remesurement

    Remesurement

    Remesurement

    10,000.00

    436,406.00

    117.463.50

    15,769.10

    32,752.00

    17,600,00

    7,000.00

    6,000.00

    2,400.00

    9,000.00

    57,982.00

    48,556.00

    Total 12,983,381.04

    Net total 12,983,381.04

  • 6.4 Case Study 3

    The case study 3 which summaries the background of the Project of

    Cadangan Pembagunan Fasa 1 Feldajaya Utara, Felda Trolak, Mukim Sungkai Perak.

    The parties involved are the client which is Lembaga Kemajuan Tanah Persekutuan

    (FELDA), Felda Engineering Services Sdn. Bhd. as Project Manager and Quantity

    Surveyor, Arup Jururunding Sdn. Bhd. As Structural and M&E Engineer, the architect

    is W&W Architect and Aruz Zaman Sdn. Bhd. as the contractor.

    The contract no of this project is contract 100000464. The original contract

    sum is value at RM 38,000,000.00 and adjustment to Contract Sum RM15,820,340.00

    which made the final contract sum to RM 53,820,340.00. The contract period for this

    project is 72 weeks and the date of site possession is on 23thJune 2003 which the

    original of completion date on 20th December 2004, but the actual completion date is

    on 15th August 2006 with the defect Liability Period which on 15th March 2008.

    List of the variation works as shown in Table 6.2 shows the factor that

    influence to the variation works and also the cost incurred for each variation work.

    For this project, there are thirty five (35) variation works involved including re-

    measurement works.

  • Table 6.3 : List of variation works for case study 3

    TOTAL (RM) V.O

    NO

    DESCRIPTION

    FACTORS INFLUENCE V.O ADDITION OMISSION

    1.

    2.

    3.

    4.

    5.

    VARIATION WORKS

    Gutter & Flashing (for Banglow type

    A,B,C,D,E, Surau)

    Diversion Main Drain (Section A,B, & C)

    TCT Rolform (for Dewan, Rumah Kedai,

    Kolej Kini, Tadika, Pasar, Tandas Awam,

    Asrama, Medan Selera, Perhentian Bas &

    Teksi & Dewan Makan)

    Additional Unit Rumah Kedai

    Additional Tandas Kolej Kini (Pile cap

    design)

    Error in BQ

    To comply JPS requirement, changes

    in design, & Error in BQ

    Error in BQ

    Clients request

    Clients request , changes in design

    130,954.50

    2,053,206.00

    656,554.48

    209,950.00

    74,700.90

  • 6.

    7.

    8.

    9.

    10.

    11.

    12.

    13.

    14.

    15.

    16.

    17.

    18.

    19.

    20.

    Additional Kolej Kini ( Pipe Footing Pad)

    Additional Tandas Awam

    Additional Building Dewan Makan

    Additional Building IKS

    Additional Rock Excavation

    Plate Bearing Test

    Additional Lampu isyarat for Persimpangan

    Besout

    Additional Jalan susur keluar

    Changes of design of road

    Additional Pilling Works

    Additional Earthwork at Suction Tank

    External Works

    Changes Pipe HDPE to MS

    Preliminary Hoarding

    Ancillary Building (TNB, Dewan & Pasar)

    Water Reticulation

    Clients request, changes in design

    Clients request

    Clients request

    Clients request

    Suite site condition

    Clients request

    To comply JKR requirement

    To comply JKR requirement

    To comply JKR requirement

    Remesurement , site condition

    Remesurement

    Remesurement

    To comply JBA requirement

    Remesurement

    Remesurement

    Remesurement

    77,461.32

    47,888.10

    327,317.70

    2,992,400.00

    593,396.00

    13,800.00

    2,000,000.00

    1,200,000

    754,960.00

    1,250,00.00

    14,473.20

    2,300,750.00

    8,140,000.00

    43,000.00

    585,000.00

    45,000.00

  • 21.

    22.

    23.

    24.

    25.

    26.

    27.

    28.

    29.

    30.

    Electrical Works (Pasar, Dewan, Kolej &

    Tadika)

    Additional Dewan & Pasar-M&E works

    Prime Cost ( STP, Meru Tanda, Landscape

    Works, Playground Equipment)

    R.C concrete sump

    Hose Reel Tank & Pump House at Tadika

    Additional for Air-condition (Kolej)

    Main Switch Board (MSB) and Cable

    Slope Trimming & Hydro seeding Works

    Additional for 3 phase at Rumah Kedai

    Paint Road Kerb using emulsion paint type

    weather.

    Remesurement

    Remesurement

    Clients request

    Error in BQ

    Error in BQ

    Error in BQ

    Error in BQ

    Error in BQ

    Error in BQ

    Error in BQ

    415,000.00

    150,000.00

    100,000.00

    48,528.00

    65,000.00

    100,000.00

    300,000.00

    50,000.00

    20,000.00

    50,000.00

  • 31.

    32.

    33.

    34.

    35.

    Additional Tingkap pintu, Frosted glass

    Water proofing (banglow & building)

    Changes Jubin at Car porch Bungalow

    House

    Railing

    Error in BQ

    Error in BQ

    Error in BQ

    Error in BQ

    20,000.00

    70,000.00

    80,000.00

    200,000.00

    Total 15,820,340.00

    Net total

  • 60

    6.5 Result and Analysis

    a. The result of the types of variation and the factors that influence to the

    variation

    From the three case studies above, the analysis and the result of the types of

    variations were tabulated in the Table 6.4. While the factors that influence the

    variation can be shown in the 6.5. Based on the Table 6.5 the percentage of the factors

    that influence the variation have been summaries in the Figure 6.1

    Table 6.4 : Types of variations

    Item Types of variation Example

    1. According to identity of the

    initiator

    Client, consultant, authority

    and contractor etc.

    2. According to nature of