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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
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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
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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
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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.
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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.
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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.
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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
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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.
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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).
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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
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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.
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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.
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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.
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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.
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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
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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
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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.
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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.
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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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25
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
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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.
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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.
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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).
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(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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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).
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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.
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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.
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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.
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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.
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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.
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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
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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
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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